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GRP Ltd.

BSE: 509152 Sector: Others
NSE: GRPLTD ISIN Code: INE137I01015
BSE 00:00 | 07 May 919.65 -28.25
(-2.98%)
OPEN

951.40

HIGH

977.30

LOW

918.00

NSE 00:00 | 07 May 926.20 -26.60
(-2.79%)
OPEN

949.95

HIGH

983.00

LOW

911.10

OPEN 951.40
PREVIOUS CLOSE 947.90
VOLUME 1060
52-Week high 1028.00
52-Week low 570.70
P/E
Mkt Cap.(Rs cr) 122
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 951.40
CLOSE 947.90
VOLUME 1060
52-Week high 1028.00
52-Week low 570.70
P/E
Mkt Cap.(Rs cr) 122
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

GRP Ltd. (GRPLTD) - Auditors Report

Company auditors report

TO THE MEMBERS OF GRP LIMITED

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the accompanying Standalone Financial Statements of GRP Limited(“the Company”) which comprise the Balance Sheet as at 31st March 2020 theStatement of Profit and Loss (Including Other Comprehensive Income) Statement of Changesin Equity and Statement of Cash Flows for the year then ended and notes to the StandaloneFinancial Statements including a summary of significant accounting policies and otherexplanatory information (hereinafter referred to as “Standalone FinancialStatements”).

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 accounting principles generally accepted in India of thestate of affairs of the Company as at 31st March 2020 and its losses including OtherComprehensive Income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit of Standalone financial statement in accordance with theStandards on Auditing specified under section 143(10) of the Act. Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the Standalone Financial Statements section of our report. We are independent ofthe Company in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our auditof the Standalone Financial Statements under the provisions of the Act and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the ICAI's Code of Ethics. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our opinion onStandalone Financial statements.

Key Audit Matters

Key audit Matters are those matters that in our professional judgement were of mostsignificance in our audit of the standalone financial statement of the current period.These matters were addressed in the context of our audit of the standalone financialstatement as a whole and in forming our opinion thereon we do not provide a separateopinion on these matters.

We have determined the matters described below to be the Key Audit Matters to becommunicated in our report

1. Disputed Tax liabilities

The Company has material amounts arising from uncertain tax positions includingdisputes related to Income Tax Excise Duty and Service Tax Value Added Tax. Thesematters involve significant management judgment to determine the possible outcomes.

Refer to Note No. 33 of the standalone financial statements

Auditor's Response

We obtained details of completed assessments during the year ended 31st March 2020from the management considered the estimates made by the management in respect of taxprovisions and possible outcomes of the dispute. Additionally we also considered theeffect of new information in respect of uncertain tax positions and matters under disputeas at 31st March 2019 to evaluate whether any changes were required in the managementsposition on these uncertainties.

2. Ind AS 116

As described in Note 2C “Right of Use Assets” to the standalone financialstatements the Company has adopted Ind AS116 Leases (“Ind AS 116”) in thecurrent year. The application and transition to this accounting standard was a complexexercise and was an area of focus in our audit as the Company had a number of vehicleleases with different contractual terms. Adoption of the standard involved significantjudgment and estimates including determination of the discount rates and the lease term aswell as transitional adjustments.

Auditor's Response

Our Audit procedure in adoption of Ind AS 116 included:

• Assessing and testing new processes and controls in respect of Ind AS 116

• Assessed the Company's identification of leases based on the contractualagreements and our knowledge of the business Upon transition as at 1 April 2019:

• Evaluating the method of transition and related adjustments;

• Testing completeness of the lease data by reconciling the Company's operatinglease commitments with the data used in computing Right of Use assets and the leaseliabilities.

3. Determination of Value inventories at the year ended 31st March 2020.

As the Country was under lockdown as on 31st March 2020 the physical verification ofstock could not be conducted and the Management has carried out physical verification onresumption of activities at Plant. For valuation of inventories Net Realizable Value(NRV) as on the date of resumption of operations and sale subsequently has beenconsidered. We considered the value of the inventories as a key audit matter given therelative size of the same in the financial statements and the significant judgmentsinvolved in the consideration of factors in determination of realizable value (such asfluctuation of raw materials prices in the market and others).

Auditor's Response

For the purpose of determination of physical quantity of the inventory as at the yearend the Company has carried out the physical verification after the operations at therespective plants resumed after the lockdown. We have relied upon their report.

We understood and tested the design and operating effectiveness of controls asestablished by the management in determination of net realizable value of inventory.Assessing the appropriateness of Company's accounting policy for valuation of inventoriesand compliance of the policy with the requirements of the prevailing accounting standards.

We considered various factors including the actual selling price prevailing around andsubsequent to the year-end compared the cost of the finished goods with the estimated netrealizable value and checked if the finished goods were recorded at net realizable valuewhere the cost was higher than the net realizable value. For the purpose of determinationof cost the Company has considered the prevailing market situation. We have relied uponthe records produced by the company in respect of arriving of the Net realizable value.

Based on the above procedures performed the management's determination of the netrealizable value of the inventory as at the year end and comparison with cost forvaluation of inventory is considered to be reasonable.

Other Information

The Company's Management and Board of Directors is responsible for the preparation ofother information. The other information includes the information in Annual Report butdoes not include the standalone financial statements and our auditor's report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon. In connection with ouraudit of the standalone financial statements our responsibility is to read the otherinformation and in doing so consider whether the other information is materiallyinconsistent with the standalone financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial Statements

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 includingOther Comprehensive Income changes in equity and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the IndianAccounting Standards specified under section 133 of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Standalone Financial Statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the Standalone Financial Statements the Board of Directors is responsiblefor assessing the Company's ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless the Board of Directors either intends to liquidate the Company or tocease operations or has no realistic alternative but to do so.

The Board of Directors are also responsible for overseeing the Company's financialreporting process.

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

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 Standards on Auditing will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these Standalone Financial Statements.

As part of an audit in accordance with Standards on Auditing we exercise professionaljudgment and maintain professional scepticism throughout the audit.

We also:

• Identify and assess the risks of material misstatement of the standalonefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 as amended we are also responsible for expressing our opinionon whether the company has adequate internal financial controls system in place and theoperating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting 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.

• Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

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

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.

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 ofthe Act we give in the “Annexure A” a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

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 Changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the books of account.

(d) In our opinion the aforesaid Standalone Financial Statements comply with theIndian Accounting Standards specified under Section 133 of the Act read with Rule 7 ofthe Companies (Accounts) Rules 2015 as amended.

(e) On the basis of the written representations received from the directors as on 31stMarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 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 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 has disclosed the impact of pending litigations on its StandaloneFinancial Statements- Refer Note No. 33 to the 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 during the year ended 31stMarch 2020.

3. As required by Section 197(16) of the Act we report that the Company has paidremuneration to its directors during the year in accordance with the provisions of thelimits laid down under Section 197 read with Schedule V of the Act.

For DKP & Associates
Chartered Accountants
Firm's Registration No. 126305W
D K Doshi
Partner
Place: Mumbai Membership No. 037148
Date: 10th June 2020 UDIN: 20037148AAAABC8496

“ANNEXURE A” TO THE INDEPENDENT AUDITOR'S REPORT ON THE STANDALONE FINANCIALSTATEMENTS OF GRP LIMITED

(Referred to in Paragraph 1 under the heading of “Report on other legal andregulatory requirements” of our report of even date)

i. In respect of its fixed assets :

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets on the basis of available information.

b. As explained to us all the fixed assets have been physically verified by themanagement in a phased periodical manner which in our opinion is reasonable havingregard to the size of the Company and nature of its assets. No material discrepancies werenoticed on such physical verification.

c. According to the information and explanation given to us and on the basis of ourexamination of the records of the company the title deeds of immovable property are heldin the name of the company.

ii. As explained to us physical verification of the inventories have been conducted atreasonable intervals by the management which in our opinion is reasonable having regardto the size of the Company and nature of its inventories. No material discrepancies werenoticed on such physical verification.

iii. According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms limited liabilitypartnerships or other parties covered in the register maintained under Section 189 of theAct. Consequently the requirement of clause (iii) of paragraph 3 of the Order is notapplicable to the Company.

iv. In our opinion and according to the information and explanations provided to usthe company has not granted any loans or provided any guarantees or security to partiescovered under section 185 of the Act. The company has complied with provisions of section186 of the Act in respect of investments made or loans or guarantees or securitiesprovided to parties covered under section 186 of the Act.

v. According to the information and explanations given to us the Company has notaccepted any deposits within the meaning of provisions of sections 73 to 76 or any otherrelevant provisions of the Act and the rules framed there under. Therefore the clause(v)of paragraph 3 of the Order is not applicable to the Company.

vi. We have broadly reviewed the books of accounts maintained by the company pursuantto the rules made by the Central Government for the maintenance of Cost records undersection 148 of the Act and are of the opinion that prima facie the prescribed accountingrecords have been made and maintained.

vii. In respect of Statutory dues :

a. According to the records of the Company undisputed statutory dues includingProvident Fund Employees' State Insurance Income Tax Sales Tax Goods and Service TaxService Tax Duty of Custom Duty of Excise Value Added Tax Cess and any other statutorydues have been generally regularly deposited with appropriate authorities. According tothe information and explanations given to us no undisputed amounts payable in respect ofthe aforesaid dues were outstanding as at 31st March 2020 for a period of more than sixmonths from the date becoming payable.

b. According to the information and explanations given to us and to the records of theCompany examined by us particulars of dues of income tax sales tax including value addedtax service tax duty of customs duty of excise goods and service tax cess as at 31stMarch 2020 which have not been deposited on account of dispute are as follows:

Name of The Statute Nature of Dues Period to which the amount relates Amount (Rs in lakhs) Forum Where Dispute is pending
Maharashtra Value Added Tax Sales Tax F.Y. 2011-12 92.14 Joint Commissioner (Appeal)
Maharashtra Value Added Tax Sales Tax F.Y. 2013-14 55.37 Joint Commissioner (Appeal)
Tamilnadu Value Added Tax Sales Tax F.Y. 2013-14 6.64 Dy. Commissioner (Appeal)
Tamilnadu Value Added Tax Sales Tax F.Y. 2014-15 11.97 Dy. Commissioner (Appeal)
Tamilnadu Value Added Tax Sales Tax F.Y. 2015-16 11.19 Dy. Commissioner (Appeal)
Income Tax Act1961 Income Tax F.Y. 2014-15 84.84 CIT(A)-Mumbai
Income Tax Act1961 Income Tax F.Y. 2015-16 20.11 CIT(A)-Mumbai
Income Tax Act1961 Income Tax F.Y. 2016-17 88.33 CIT(A)-Mumbai
Finance Act 1944 Central Excise January 2005 to March 2012 131.82 CESTAT
Finance Act 1944 Service Tax May 2008 to March 2012 13.03 Commissioner (Appeal)-Pune
Total 515.44

viii. In our opinion and according the information and explanations given to us thecompany has not defaulted in repayment of loans or borrowings to the Banks or Financialinstitution government and dues to debenture holder; hence clause (viii) of paragraph 3of the Order is not applicable to the Company.

ix. According to the information and explanation given to us and based on our auditprocedures the Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) and the Company has obtain the term loans whichare applied for the purpose for which they were taken .

x. In our opinion based on the audit procedures performed for the purpose of reportingthe true and fair view of the Standalone Financial Statements and as per 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. In our opinion and according to the information and explanations given to usmanagerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the CompaniesAct 2013.

xii. In our opinion the Company is not a Nidhi Company and hence reporting under theprovisions of clause (xii) of paragraph 3 of the Order are not applicable to the Company.

xiii. In our opinion and according to information and explanations provided by themanagement transactions with related parties are in compliance with section 177 and 188of the Act where applicable and the details have been disclosed in the StandaloneFinancial Statements as required by the applicable accounting standards.

xiv. In our opinion and according to the information and explanations given to us theCompany has not made any preferential allotment or private placement of shares or fully orpartly convertible debentures during the year and hence reporting under clause (xiv) ofparagraph 3 of the Order is not applicable to the Company.

xv. In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transaction with thedirectors or persons connected with him and covered under section 192 of the Act and hencereporting under clause (xv) of the paragraph 3 of the Order is not applicable to theCompany.

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

For DKP & Associates
Chartered Accountants
Firm's Registration No. 126305W
D K Doshi
Partner
Place: Mumbai Membership No. 037148
Date: 10th June 2020 UDIN: 20037148AAAABC8496

“ANNEXURE B” TO THE INDEPENDENT AUDITOR'S REPORT ON THE STANDALONE

FINANCIAL STATEMENTS OF GRP LIMITED

(Referred to in paragraph 2 (f) under ‘Report on Other Legal and RegulatoryRequirements' of our report of even date)

Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 (“the Act”).

We have audited the internal financial controls with reference to standalone financialstatements over Financial Reporting of GRP Limited (“the Company”) as of 31stMarch 2020 in conjunction with our audit of the standalone financial statements of theCompany for the year then ended.

Management Responsibility for the Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control with reference to financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the “Guidance Note”) issued by the Institute of Chartered Accountantsof 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 to theCompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to standalone financial statements based on our audit. Weconducted our audit in accordance with the Guidance Note issued by ICAI and the Standardson auditing prescribed under Section 143(10) of the Act to the extent applicable to anaudit of internal financial controls. Those Standards and the Guidance Note require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether adequate internal financial controls with reference to financialstatements was established and maintained and if such controls operated effectively in allmaterial respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system with reference to financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of internal financial controlswith reference to financial statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the StandaloneFinancial Statements whether due to fraud or error.

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 controls systemwith reference to standalone financial statements.

Meaning of Internal Financial Controls with reference to financial statements

A company's internal financial control with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of Financial Statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control withreference to financial statements includes those policies and procedures that (1) pertainto the maintenance of records that in reasonable detail accurately and fairly reflectthe transactions 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 authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the Financial Statements.

Inherent Limitations of Internal Financial Controls with reference to financialstatements

Because of the inherent limitations of internal financial controls with reference tofinancial statements 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 withreference to financial statements to future periods are subject to the risk that theinternal financial control with reference to standalone financial statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31st March 2020 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note issued by the ICAI.

For DKP & Associates
Chartered Accountants
Firm's Registration No. 126305W
D K Doshi
Partner
Place: Mumbai Membership No. 037148
Date: 10th June 2020 UDIN: 20037148AAAABC8496

 

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