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Giriraj Civil Developers Ltd.

BSE: 535066 Sector: Infrastructure
NSE: GIRIRAJ ISIN Code: INE614Z01017
BSE 05:30 | 01 Jan Giriraj Civil Developers Ltd
NSE 05:30 | 01 Jan Giriraj Civil Developers Ltd

Giriraj Civil Developers Ltd. (GIRIRAJ) - Auditors Report

Company auditors report

To

The Members of

Giriraj Civil Developers Limited

I. Report on the Audit of the Standalone financial Statements

1. Opinion

a) We have audited the accompanying Standalone Financial Statements of Giriraj CivilDevelopers Limited ("the Company") which comprise the Balance Sheet as atMarch 31 2020 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 ended onthat date and a summary of the significant accounting policies and other explanatoryinformation (hereinafter referred to as "the Standalone Financial Statements").

b) In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Standalone Financial Statements give the information requiredby the Companies Act 2013 ("the Act") in the manner so required and give a trueand fair view in conformity with the Accounting Standards prescribed under section 133 ofthe Act read with the Companies (Accounting Standards) Rules 2015 as amended and otheraccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2020 the profit and total comprehensive income changes in equity and itscash flows for the year ended on that date

2. Basis of Opinion

We conducted our audit of the Standalone Financial Statements in accordance with theStandards on Auditing specified under section 143(10) of the Act (SAs). Ourresponsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules made there under and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the Standalone Financial Statements.

3. Emphasis Matter

We draw attention to note 33 of the accompanying standalone Ind AS financial statementswhich explain the uncertainties and the management's assessment of the financial impartdue to the lock-downs and other restrictions and conditions related to the COVID-19pandemic situation for which a definitive assessment of the impact in the subsequentperiod is highly depended upon circumstances as they evolve further our attention at thephysical verification of inventor done by the management was impracticable under thecurrent lock-down restriction imposed by the government and we have therefore relied onthe related alternative auditTC?\comfort over the existence and condition on inventory atyear formed opening in not modified in respect of this mottcr. /coir

Offices in Thane & Mumbai

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

Thereon:

a) The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the Standalone Financial Statements and our auditor's report thereon. Our opinionon the standalone financial statements does not cover the other information and we do notexpress any form of assurance conclusion thereon.

b) In connection with our audit of the 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 obtainedduring the course of our audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is no material misstatement of thisother information we are required to report that fact. We have nothing to report in thisregard.

5. Management's Responsibility for the Standalone Financial Statements

a) The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these Standalone Financial Statementsthat give a true and fair view of the financial position financial performance totalcomprehensive income changes in equity and cash flows of the Company in accordance withthe accounting standard and other accounting principles generally accepted in India. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

b) In preparing the Standalone Financial Statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so. The Board of Directors are responsible for overseeingthe Company's financial reporting process.

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

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

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

i) Identify and assess the risks of material misstatement of the standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

ii) Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls with reference to financial statements inplace and the operating effectiveness of such controls.

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

iv) Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe Standalone Financial Statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern

v) Evaluate the overall presentation structure and content of the Standalone FinancialStatements including the disclosures and whether the Standalone Financial Statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation

c) Materiality is the magnitude of misstatements in the Standalone Financial Statementsthat individually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the Standalone Financial Statements may be influenced. Weconsider quantitative materiality and qualitative factors in

(i) planning the scope of our audit work and in evaluating the results of our work; and(ii) to evaluate the effect of any identified misstatements in the Standalone FinancialStatements.

d) We communicate with those charged with governance regarding among other mattersthe planned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

e) We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

II. Report on other Legal and regulatory requirements

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

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

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

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

d) In our opinion the aforesaid standalone financial statements comply with theaccounting standard specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014

e) On the basis of the written representations received from the directors as on March31 2020 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2020 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 with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in ''Annexure A". Our report expresses anunmodified opinion on the adequacy and operating effectiveness of the Company's internalfinancial controls with reference to financial statements.

g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:

In our opinion and to the best of our information and according to the explanationsgiven to us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.

h) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:

i) The Company has disclosed the impact of pending litigations on its financialposition in its Standalone Financial Statements

ii) The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts

iii) There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company.

2. As required by the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central

Government in terms of Section 143(11) of the Act we give in "Annexure B"a statement on the

matters specified in paragraphs 3 and 4 of the Order.

For LLB & Co.

Chartered Accountants

(Firm Reg. No. 117758W)

Manju Choudhary Partner M.No.: 195166 UDIN: 20195166AAAAAV3421
Place: Mumbai
Date: 14th August 2020

Referred to paragraph II (1) (f) under 'Report on other legal and regulatoryRequirements' of our report of even date to the member of Giriraj Civil DevelopersLimited on the financial statements for the year ended March 31 2020.

Report on the Internal Financial Controls under Clause (i) of Sub - section 3 ofSection

143 of the Act

1. We have audited the internal financial controls over financial reporting of GirirajCivil Developers Limited ('the Company') as of March 31 2020 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

2. 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 Accountant of India (ICAI). These responsibilitiesinclude the design Implementation and maintenance of adequate Internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of fraud and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Act.

Auditor's Responsibility

3. 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 deemed to be prescribedunder section 143(10) of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the 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 exits and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risk ofmaterial misstatement of the financial statements whether due to fraud or error.

5. 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 controls systems overfinancial reporting.

Meaning of Internal Financial Controls over Financial Reporting

6. 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 statement for external purpose in accordance withgenerally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that

i. Pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

ii. 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; and

iii. 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

7. 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

8. In our opinion the Company has in all materials respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2020 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 LLB & Co.

Chartered Accountants

(Firm Reg>No.\ll7758W)

Manju Choudhary Partner M.No.: 195166 UDIN: 20195166AAAAAV3421
Place: Mumbai
Date: 14th August 2020

Annexure-B Referred to in paragraph titled as 11(2) "Report on Other Legal andRegulatory Requirements" of Independent Auditor's Report to Members of GIRIRAJCIVIL DEVELOPERS LIMITED for the year ended 31st March 2020.

1. (a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of its fixed assets.

(b) As explained to us the fixed assets have been physically verified by the Managementat reasonable intervals during the year. We are informed that no material discrepancieshave been noticed by the management on such verification as compared to the aforesaidrecords of fixed assets.

(c) As per the information and documents provided to us the title deeds of all theimmovable properties are held in the name of the company.

2. (a) The management has conducted physical verification of inventory at reasonableintervals.

(b) The procedures of physical verification of inventory followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

(c) The Company is maintaining proper records of inventory. No material discrepancieswere noticed on physical verification.

3. (a) The Company has granted unsecured loans to a firm and parties covered in theregister maintained under section 189 of the Companies Act 2013 amount outstanding at theend was Rs. 132.14 Lakhs (The maximum amount outstanding at any time during the yearRs.177.18 Lakhs).

(b) In our opinion and according to the information and explanations given to us theloans given are not prima facie prejudicial to the interest of the Company.

(c) In our opinion and according to the information and explanations given to us therewas no stipulation as to repayment of principal amount and Interest. However such Loansare paid on demand.

4. In our opinion and according to the information and explanations given to us thecompany has not complied with the provisions of section 185 of the Companies Act 2013 Inrespect of loans investments guarantees and security.

5. The Company has not accepted any deposits from the public and hence the directivesissued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any otherrelevant provisions of the Act and the Companies (Acceptance of Deposit) Rules 2015 withregard to the deposits accepted from the public are not applicable.

6 It was informed that the central government has not prescribed for maintenance ofcost records as required under section 148 of the Companies Act 2013.

7 (a) According to the information and explanations given to us and the books andrecords examined by us the Company has been generally regular in depositing undisputedstatutory dues including provident fund income-tax sales-tax GST wealth tax servicetax duty of customs duty of excise value added tax cess and any other statutory dueswith the appropriate authorities except delay payment of TDS.

(b) According to the records of the Company there were no undisputed amounts payablein respect of Provident Fund Employees' State Insurance Income-tax Sales Tax GSTWealth Tax Service Tax Customs Duty Excise Duty Value Added Tax Cess and othermaterial statutory dues in arrears as at March 31 2020 for a period of more than sixmonths from the \ date they became payable Except TDS liabilities of Rs. 17.61 Lakhs uor \yJV-LT' ! %jj

(c) According to the information and explanation given to us there are no dues ofincome tax sales tax service tax duty of customs duty of excise value added taxoutstanding on account of any dispute.

8 According to the records of the Company examined by us and the information andexplanation given to us the Company has defaulted in repayment of dues to financialinstitution and bank as at the balance sheet date details as under:

Nature of Borrowing Name of Lender Principle Amount not Paid on due date Interest Amount not Paid on due date Remark
Unsecured Term Loan for Business Aditya Birla Finance Ltd 1673505 131417 Current year dues
Unsecured Term Loan for Business Deutsche Bank 1663206 Nil Current year dues
Unsecured Term Loan for Business Fintree Finance Private Limited 1408268 101908 Current year dues
Unsecured Term Loan for Business Indusind Bank 1638171 Nil Current year dues
Secured Term loan for Equipment purchase Sundaram Finance Ltd 1043799 Nil Current year dues
Unsecured Term Loan for Business Volition Credit and Holdings Pvt. Ltd 1910190 Nil Current year dues

The Company does not have any loans from Government nor has it issued any debenturesas at the balance sheet date.

9 Based upon the audit procedures performed and the information and explanations givenby the management the company has not raised moneys by way of initial public offer orfurther public offer including debt instruments and term Loans. Accordingly theprovisions of clause 3 (ix) of the Order are not applicable to the Company and hence notcommented upon.

10 Based upon the audit procedures performed and the information and explanations givenby the management we report that no fraud by the Company or on the company by itsofficers or employees has been noticed or reported during the year.

11 According to the information and explanation given to us and based on ourexamination of the records of the company the company has provided/paid for managerialremuneration in accordance with the requisite approvals mandated by the provision ofSection 197 read with schedule V to the act.

12 In our opinion and according to the information and explanations given to us theCompany is not a Nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable.

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 The company has not raised any money by way of preferential allotment of equityshares or any debt instrument.

15 As 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-cashtransaction with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not application

16 In our opinion the company is not required to be registered under section 45 IA ofthe Reserve Bank of India Act 1934 and accordingly the provisions of clause 3 (xvi) ofthe Order are not applicable to the Company and hence not commented upon.

Foe LLB & Co. Chartered Accountants

(Firm Reg. No: 117758W)

ry partner M.hio .1195166 UDIN: 20195166AAAAAV342
Place: Mumbai
Date: 14th August 2020

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