TO THE MEMBERS OF GTV ENGINEERING LTD.
Report on the Audit of the Standalone Financial Statements Opinion
We have audited the accompanying standalone financial statements of GTV EngineeringLimited ("the Company") which comprise the Balance Sheet as at March 31 2022the Statement of Profit and Loss and Cash Flow Statement for the year ended on that dateand a summary of significant accounting policies and other explanatory information(hereinafter referred to as "the standalone financial statements").
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 and other accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2022 and its profits and its cash flows for theyear ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the auditors responsibilities for the audit of the financial statementssection of our report. We are independent of the Company in accordance with the code ofethics issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the code of ethics.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.
Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.
We have determined that there are no key audit matters to communicate in our report.
Information Other than the Standalone Financial Statements & Auditors ReportThereon
The Companys Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Boards Report including Amiexures to Boards ReportBusiness Responsibility Report Corporate Governance and Shareholders Informationbut does not include the standalone financial statements and our auditors reportthereon.
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 our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider Whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingof the assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
In preparing the standalone financial statements management is responsible forassessing the Companys ability to continue as a going concern disclosing asapplicable matters related to going concern and using the going concern basis ofaccounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Companys financialreporting process.
Auditors Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditors report that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the 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.
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 we are also responsible for expressing our opinion on whetherthe company has adequate internal financial controls system in place and the operatingeffectiveness 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 managements use of the going concernbasis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompanys ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditors report to therelated disclosures in the financial statements or. if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditors report. However future events or conditions may cause theCompany to cease to continue as a going concern.
Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
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 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.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure "about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
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 and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.
d. In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with relevant ruleissued thereunder.
e. On the basis of the written representations received from the directors as on 31stMarch 2022 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2022 from being appointed as a director in terms of Section164 (2) of the Act.
f. With respect to adequacy of the internal financial controls over financial reportingof the company and the operating effectiveness of such controls refer to our separatereport in "Annexure A". Our report expresses an unmodified opinion on theadequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting.
g. With respect to the other matters to be included in the Auditors report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in
our opinion and to the best of our information and according to the explanations givento us:
i. The Company does not have any pending litigations which would impact its financialposition.
ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any and as required on long-term contractsincluding derivative contracts.
iii. There were no amounts which were required to be transferred to Investor Education& Protection fund by the company.
2. As required by the Companies (Auditors Report) Order 2016 ("TheOrder") issued by the Central Government of India in terms of Sub Section 11 ofSection 143 (3) of the Act We give in the "Annexure B" statement on the mattersspecified in the Paragraph 3 & 4 of the order to the extent applicable .
Annexure- A to the Independent Auditors Report of even date on the Standalonefinancial statement of GTV Engineering 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 GTVEngineering Limited ("the Company") as of 31 March 2022 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on 31stMarch 2022.
Managements Responsibility for Internal Financial Controls
The Companys 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 Intefhal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (TCAF). 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 companys policies the safeguarding of its assetsthe prevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance- Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditors judgment including the assessment of the risks ofmaterial misstatement of the financial 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 Companys 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures 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 financ ial 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.
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 31 March 2022 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.
ANNEXURE- A TO THE AUDITORS' REPORT
The Annexure referred to in our Independent Auditor's report to the members of thecompany on the Standalone Financial Statements for the year ended 31st March2022 we report that
(i) (a) The Company has maintained proper records showing full particulars includingquantitative
details and situation of fixed assets.
(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has a regular programme of physicalverification of its property plant and equipment by which all property plant andequipment are verified in a phased manner over a period of one years. In accordancewiththis programme property plant and equipment were verified during the year. In ouropinion this periodicity of physical verification is reasonable having regard to thesizeof the Company and the nature of its assets. No material discrepancies were noticed onsuch verification.
(c) According to the information and explanations given to us and on the basis of ourexamination of records of the company the registered title deeds of immovable propertyprovided to us we report that the titles are held in name of tire company.
|Description of property ||Gross carrying value ||Held in name of ||Whether promoter director or their relative or employee ||Period held - indicate range where appropriate ||Reason for not being held in name company* |
| || || ||" ||" || |
(d) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not revalued its propertyplant and equipment (including right of use assets) or intangible assets or both duringthe year.
(e) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company there are no proceedings initiated or pendingagainst the Company for holding any benami property under the Prohibition of BenamiProperty Transactions Act 1988 and rules made thereunder.
(a) The physical verification of inventory has been conducted at reasonable intervalsby the management and in our opinion the coverage and procedure of such verification bythe management is appropriate . As informed to us no discrepancies in any class ofinventory were noticed .
(b) During the year the company has been sanctioned working capital limits aggregatingmore than Rs 5 Crores from bank on the basis of security of current assets thequarterly returns or statements filed by the company with such banks are in agreement withthe books of account of the Company .
(iii) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has made investments in itsassociate company of Rs. 8.5 crores. The company has not granted any loans or advances inthe nature of loans secured or unsecured to companies firms Limited LiabilityPartnerships or any other parties.
(a) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company during the year the company has not providedloans or provided advances in the nature of loans or stood guarantee or providedsecurity to any other entity .
(A) the aggregate amount during the year and balance outstanding at the balance sheetdate with respect to such loans or advances and guarantees or security to subsidiariesjoint ventures and associates- Nil
(B) the aggregate amount during the year and balance outstanding at the balance sheetdate with respect to such loans or advances and guarantees or security to parties otherthan
subsidiaries joint ventures- Nil
(b) whether the investments made guarantees provided security given and the terms andconditions of the grant of all loans and advances in the nature of loans and guarantees
provided are not prejudicial to the companys interest- Not Applicable
(c) in respect of loans and advances in the nature of loans whether the schedule ofrepayment of principal and payment of interest has been stipulated and whether therepayments or receipts
are regular - Not applicable
(d) if the amount is overdue state the total amount overdue for more than ninety daysand whether reasonable steps have been taken by the company for recovery of the principaland
interest - Not applicable
(e) whether any loan or advance in the nature of loan granted which has fallen dueduring the year has been renewed or extended or fresh loans granted to settle the overdues of existing loans given to the same parties if so specify the aggregate amount ofsuch dues renewed or extended or settled by fresh loans and the percentage of theaggregate to the total loans or
advances in the nature of loans granted during the year - Not Applicable
(f) whether the company has granted any loans or advances in the nature of loans eitherrepayable on demand or without specifying any terms or period of repayment if so specifythe aggregate amount percentage thereof to the total loans granted aggregate amount ofloans granted to Promoters related parties as defined in clause (76) of section 2 of the
Companies Act 2013 - Not applicable
(iv) In our opinion and according to the information and explanations given to us thecompany has complied with the requirements of section 185 & 186 of the act withrespect to loans & investments made.
i"'' According to the information and explanations given to us the company hasnot accepted any deposits which are deemed as deposit from the Public during the yearunder audit Accordingly clause 3(v) of the Order is not applicable
(vi) The provisions of maintenance of cost records under section 148 (1) of theCompanies Act 2013 are applicable to the company and necessary cost records aremaintained by the company.
(vii) (a) The company is regular in depositing with appropriate authorities undisputedstatutory dues including provident fund income tax Goods and Service Tax. custom dutyexcise duty cess and other material statutory dues applicable to it. According to theinformation and explanations given to us no undisputed amounts payable in respect of theabove were in arrears as at March 312022 for a period of more than six months from thedate on when they become payable.
(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company in our opinion amounts deducted / accrued inthe books of account in respect of undisputed statutory dues including GST Providentfund Employees State Insurance Income-Tax Duty of Customs Cess and otherstatutory dues have been regularly deposited by the Company with the appropriateauthorities;
According to the information and explanations given to us and on the basis of ourexamination of the records of the Company no undisputed amounts payable in respect ofGST Provident fund Employees State Insurance Income-Tax Duty of Customs Cessand other statutory dues were in arrears as at 31 March 2022 for a period of more than sixmonths from the date they became payable.
(viii) According to the information and explanations given to us and on the basis ofour examination of the records of the Company the Company has not surrendered ordisclosed any transactions previously unrecorded as income in the books of account inthe tax assessments under the IncomeTax Act 1961 as income during the year.
(ix) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company the Company has not defaulted in therepayment of loans or borrowings or in the payment of interest thereon to any lender.
|Nature of borrowing including debt securities ||Name of lender* ||Amount not paid on due date ||Whether principal or interest ||No. of daysdelay or unpaid ||Remarks if any |
|Not Applicable as the company is regular in payment of Installments and interest || || || || || |
(b) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the Company has not been declared a willfuldefaulter by any bank or financial institution or government or government authority
(c) In our opinion and according to the information and explanation given to us by themanagement the has not availed any term loans during the year .
(d) According to the information and explanations given to us and on an overallexamination of the balance sheet of the Company we report that no funds raised short-termbasis have been used for long-term purposes by the Company
(e) According to the information and explanations given to us and procedures performedby us we report that the Company has not raised loans during the year on the pledge ofsecurities held in its subsidiaries (as defined under the Act)
(0 According to the information and explanations given to us and procedures performedby us the company has not raised any loans during the year on the pledge of securitiesheld in its subsidiaries joint ventures or associate companies.
(x) (a) The Company has not raised any moneys by way of initial public offer or furtherpublic offer (including debt instruments) Accordingly clause 3(x)(a) of the Order is notapplicable
(b) According to the information and explanations given to us and on the basis of 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. Accordingly clause 3(x)(b) of the Order is not applicable.
(xi) (a) Based on examination of the books and records of the Company and according tothe information and explanations given to us considering the principles of materialityoutlined in the Standards on Auditing we report that no fraud by the Company or on theCompany has been noticed or reported during the course of the audit.
(b) According to the information and explanations given to us no such report undersub-section (12) of section 143 of the Companies Act has been filed by the auditors inForm ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules 2014 withthe Central
Government has been filled during the course of our audit.
(c) According to the information and explanations given to us no whistle-blowercomplaints were received during the year by the company
(xii) (a) The company is not a Nidhi company. Accordingly paragraph 3(xii) of theOrder is not applicable to the company.
(xiii) Whether all transactions with the related parties are in compliance withsections 177 and 188 of Companies Act where applicable and the details have been disclosedin the financial statements etc. as required by the applicable accounting standards
fxiv) (a) Based on information and explanations provided to us and our auditprocedures in our opinion the Company has an internal audit system commensurate with thesize and nature of its business.
(b) We have considered the reports of the Internal Auditors for the period under auditissued till date for the period under audit.
(xv) According to information & 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 paragraph 3(xv) ofthe order is not applicable.
(xvi) (a) The Company is not required to be registered under Section 45-IA of theReserve Bank of India Act 1934 Accordingly clauses 3(xvi) (a) and 3(xvi)(b) of theOrder are not applicable.
(b) The company has not conducted any Non-Banking Financial or Housing Financeactivities during the year
(c) The Company is not a Core Investment Company (CIC) as defined in the regulationsmade by the Reserve Bank of India. Accordingly clause 3(xvi)(c) of the Order is notapplicable
(d) According to the information and explanations provided to us during the course ofaudit the Group does not have any CICs.
(xvii) The company has not any incurred cash losses in the financial year and in theimmediately preceding financial year
(xviii) There has been no resignation of the statutory auditors during the year.Accordingly clause
'ttvviii'l nf thp OrrW is lint Arvnlirflhle
(xix) According to the information and explanations given to us and on the basis of thefinancial ratios ageing and expected dates of realization of financial assets and paymentof financial liabilities other information accompanying the Financial statements ourknowledge of the Board of Directors and management plans and based on our examination ofthe evidence supporting the assumptions nothing has come to our attention which causesus to believe that any material uncertainty exists as on the date of the audit report thatthe Company is not capable of meeting its liabilities existing at the date of balancesheet as and when they fall due within a period of one year from the balance sheet date.
We however state that this is not an assurance as to the future viability of theCompany. We further state that our reporting is based on the facts up to the date of theaudit report and we neither give any guarantee nor any assurance that all liabilitiesfalling due within a period of one year from the balance sheet date will get dischargedby the Company as and when they fall due.
(xx) (a) In our opinion and according to the information and explanations given to usthere is no
unspent amount under sub-section (5) of section 135 of the Act pursuant to any project.Accordingly clauses 3(xx)(a) and 3(xx)(b) of the Order are not applicable