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GCCL Infrastructure & Projects Ltd.

BSE: 531375 Sector: Others
NSE: N.A. ISIN Code: INE438F01013
BSE 05:30 | 01 Jan GCCL Infrastructure & Projects Ltd
NSE 05:30 | 01 Jan GCCL Infrastructure & Projects Ltd

GCCL Infrastructure & Projects Ltd. (GCCLINFRASTRUCT) - Auditors Report

Company auditors report

To

The members of

GCCL Infrastructure and Projects Limited

Report on the Ind AS Financial Statements

We have audited the accompanying Ind AS financial statements of GCCL Infrastructure andProjects Limited ("the Company") which comprise the Balance Sheet as at31" March 2018 the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Change in Equity for the year then ended Statement of Cashflows and a summary of significant accounting policies and other explanatory information.

Management's Responsibility forthe Ind AS Financial Statements

The Company's Management is responsible for the matters stated in Section 134(5) of theCompanies Act 2013 ("the Act") with respect to the preparation of these Ind Asfinancial statements that give a true and fair view of the financial position financialperformance including other comprehensive income and changes in equity of the Company inaccordance with the accounting principles generally accepted in India includingthe IndianAccounting Standards (Ind AS) prescribed under Section 133 of the Act.

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 Ind ASfinancial statements that give a true and fair view and are free from materialmisstatement whetherdueto fraud orerror.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon 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 madethereunder.

We conducted our audit of the Ind AS financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Ind AS financial statementsare free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company's Directors as well asevaluatingthe overallpresentation of the Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for ourauditopiniononthe Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the Ind AS of the state ofaffairs of the Company as at 31" March 2018 and its loss (including othercomprehensive income) and the changes in equity for the year ended on that date. OtherMatter

The comparative financial information of the Company for the year ended 31" March2018 and the transition date opening balance sheet as at 1" April 2017 included inthese Ind AS financial statements are based on the previously issued statutory financialstatements prepared in accordance with the Companies (Accounting Standards) Rules 2006(as amended) out of which balance sheet as at 1" April 2017 and financialstatements for the year ended 31" March 2018 were audited by the predecessorauditor whose report for the year ended 31" March 2018 and 31" March 2017dated 30 May 2018 and 30 May 2017 respectively expressed an unmodified opinion on thosefinancial statements as adjusted for the differences in the accounting principles adoptedby the Company on transition to the Ind AS which have been audited by us.

Ouropinion is not modified in respect of these matters.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued bythe 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 in paragraphs 3and 4 of the Order to the extentapplicable.

2. As required by section 143(3) ofthe Act we reportthat:

(a) We have sought and obtained all the information and explanations which to the bestof our knowledgeand beliefwere necessaryforthe purposesofouraudit.

(b) In ouropinion proper books of account as required bylaw have been kept bytheCompany so far as appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss (including other comprehensiveincome) Statement of cash flows and Statement of Changes in Equity dealt with by thisReport are in agreement withthe books of account.

(d) In our opinion the aforesaid Ind AS financial statements comply with the IndianAccounting Standards prescribed undersection 133 ofthe Act.

(e) With respect to the adequacy of the internal financial controls over financialreporting of the

Company and the operating effectiveness of such controls refer to our separate Reportin "Annexure B".

(f) 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 accordingtothe explanations givento us:

i. The Company does not have any pending litigations;

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

iii. There has been no delay in transferring amount required to be transferred to theInvestor Education and Protection Fund by the Company;

For

Sorab S. Engineer & Co.

Chartered Accountants

Firm Registration No. 110417W

CA. Chokshi Shreyas B.

Partner

Membership No. 100892

Ahmedabad June 152018

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE IND ASFINANCIAL STATEMENTS OF GCCL INFRASTRUCTURE AND PROJECTS LIMITED

Referred to in Paragraph 1 under the heading "Report on other legal and regulatoryrequirements" of our Independent Auditor's Report of even date

(i) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

Some of the fixed assets were physically verified during the year by the Management inaccordance with a program of verification which in our opinion provides for physicalverification of all the fixed assets at reasonable intervals. According to the informationand explanations given to us no material discrepancies were noticed on such verification.

The Company does not own any immovable properties.

(ii) As explained to us the inventory has been physically verified duringtheyear bythe Management. In our opinion frequency of verification is reasonable. The Company ismaintaining proper records of inventory. As explained to us the discrepancies noticed onverification between the physical stocks and the book records were not material havingregard to the size of the Company and the same have been properly dealt with.

(iii) The Company has not granted any loans secured or unsecured to Companies firmsLimited Liability Partnerships or other parties covered in the register maintained underSection 189 of the Act. Consequently requirement of clauses (iiia) (iiib) and (iiic)of paragraph 3 of the order are not applicable.

(iv) The Company has not advanced any loan or given any guarantee or provided anysecurity or made any investment covered under section 185 and 186 of the Act.Consequently requirements of clause (iv) of paragraph 3 of the order are not applicable.

(v) In our opinion and according to the information and explanations given to us theCompany have not accepted deposits from the public and hence the requirement of clause(v) of paragraph 3 of the order is not applicable.

(vi) The Company is not engaged in production processing mining activities Thereforethe provisions of maintenance of cost records specified by the Central Government undersub section (1) of section 148 of the Companies Act 2013 mentioned in clause (vi) ofparagraph 3 of the order are notapplicable

(vii) (a) The Company is regular in depositing with appropriate authorities undisputedstatutory dues including Provident Fund Investor Education and Protection Fund IncomeTax Wealth Tax Service Tax Cess and other material statutory dues applicable to it.However according to the information and explanations given to us details of undisputedamounts payable in respect of outstanding statutory dues were in arrears as at March 312018 for a period of more than six monthsfrom the date they became payable are as under:

Nature of Statute Nature of Dues Amount (Rs.)
Service Tax Act Service Tax 225150

(b) According to the information and explanations given to us no amount is payable ason March 31 2018 on account of any dispute.

(viii) According to the information and explanations given to us the Company has notdefaulted in repayment of loans or borrowingsto financial institutionsand banks.

(ix) The requirements of clause (ix) of paragraph 3 of the order regarding raising ofmoney through initial public offer (IPO) is not applicable to the Company. To the best ofour knowledge and belief and according to the information and explanations given to us inour opinion the term loans obtained du ring the year were prima facie applied by theCompany for the purpose for which they were obtained other than temporary deploymentpending application.

(x) To the best of our knowledge and belief and according to the information andexplanations given to us no fraud by the Company or on the Company by its officers oremployees has been noticed or reported during the year.

(xi) To the best of our knowledge and belief and according to the information andexplanations given to us the Company has not paid any managerial remuneration during theyear under review. Consequently the requirements of clause (xi) of paragraph 3 of theorder are not applicable to the Company.

(xii) The Company is not a Nidhi Company. Consequently requirements of clause (xii) ofparagraph 3 of the order are not applicable.

(xiii) To the best of our knowledge and belief and according to the information andexplanations given to us all transactions with the related parties are incompliance withsection 177 and 188 of the Act where applicable and the details have been disclosed in theFinancial Statements etc. as required by the applicable accounting standards.

(xiv) To the best of our knowledge and belief and according to the information andexplanations given to us the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year underreview. Consequently the requirements of clause (xiv) of paragraph 3 of the order are notapplicable to the Company.

(xv) To the best of our knowledge and belief and according to the information andexplanations given to us the Company has not entered into any non-cash transactions withdirectors or persons connected with him.

(xvi) To the best of our knowledge and belief and according to the information andexplanations given to us the Company is not required to be registered under section 45IAof the Reserve Bank of India Act 1934.

For

Sorab S. Engineer & Co.

Chartered Accountants

Firm Registration No. 110417W

CA. Chokshi Shreyas B.

Partner

Membership No. 100892

Ahmedabad June 15 2018

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE IND ASFINANCIAL STATEMENTS OF GCCL INFRASTRUCTURE AND PROJECTS LIMITED

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 GCCLInfrastructure and Projects Limited ("the Company") as of March 31 2018 inconjunction with our audit of the Ind AS financial statements of the Company for the yearended on 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 overfinancial reporting criteriaestablished bythe 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 Act.

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 overfinancial 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 overfinancial reportingassessing the riskthat a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the Ind AS financial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for ourauditopiniononthe Company's internal financial controls systemoverfinancial 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 Ind AS 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 Ind ASfinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the Company are being made only in accordance withauthorizations of management and directors of the Company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the Company's assets that could have a material effect on the Ind ASfinancial 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 2018 based on"the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the Institute ofChartered Accountants of India".

For

SorabS. Engineer & Co.

Chartered Accountants

Firm Registration No. 110417W

CA. Chokshi Shreyas B.

Partner

Membership No. 100892

Ahmedabad

June 152018