GAYATRI PROJECTS Auditors Report

To The Members of Gayatri Projects Limited.


Report on the Consolidated Financial Statements


We have audited the accompanying consolidated financial statements of Gayatri Projects Limited ("the holding Company") and its subsidiaries (the Holding Company and its subsidiaries together referred to as "the Group"), its associates and jointly controlled entities, comprising the Consolidated Balance Sheet as at 31st March 2016, the Consolidated Statement of Profit and Loss and the Consolidated Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information (herein after referred to as "the consolidated financial statements").


Management’s Responsibility for the Consolidated Financial Statements


The Holding Company’s Board of Directors is responsible for the preparation of these consolidated financial statements in terms of requirements of the Companies Act, 2013 ("the Act") that give a true and fair view of the consolidated financial position, consolidated financial performance and consolidated cash flows of the Group including its associates and jointly controlled entities in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended). The respective Board of Directors of the companies included in the Group and of its associates and jointly controlled entities are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Group and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the consolidated financial statements by the directors of the Holding Company, as aforesaid.


Auditors’ Responsibility


Our responsibility is to express an opinion on these consolidated financial statements based on our audit.


While conducting the audit, we have taken into account the provisions of the Act, the accounting and auditing


standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.


We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards and pronouncements require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.


An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Holding Company’s preparation of the consolidated financial statements that give a true and fair view, in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Holding Company’s Board of Directors, as well as evaluating the overall presentation of the consolidated financial statements.


We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors in terms of their reports referred in point no. a, b and c of the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the consolidated financial statements.


Basis for qualified Opinion


In stated in note no. 30.20, M/s Gayatri Infra Ventures Limited (GIVL), a subsidiary of the company, has entered into a definitive sale agreement for divestment of its entire equity stake amounting to Rs. 4606.09 lakhs held in Western UP Tollway Limited, a jointly controlled entity of GIVL. The Independent Auditors of GIVL in their audit report on consolidated financial statements of GIVL have qualified the above said matter by stating that pending final outcome of the said process, they are unable to comment upon the consequential effects, if any, of the said matter, on the financial statements of GIVL.


Opinion


In our opinion and to the best of our information and according to the explanations given to us, except for the effects of Matter described in the Basis for Qualified Opinion paragraph above, the aforesaid consolidated financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the consolidated state of affairs of the Group, its associates and jointly controlled entities as at 31st March 2016, and their consolidated profit and their consolidated cash flows for the year ended on that date.


Emphasis of Matters


(Note Nos. referred hereunder is with reference to respective Notes forming part of the consolidated financial statement)


We draw member’s attention to the following matters:


Note No.30.14 & 30.15 regarding certain loans & advances and work advances given to some of the sub-contractors which are long pending for recovery.


Our Opinion is not qualified in respect of the above matters. Other Matters :


a. We did not audit the financial statements / consolidated financial statements of three subsidiaries whose financial statements / consolidated financial statements reflect total assets (net) of Rs. 3,91,971.25 lakhs as at 31st March 2016, total revenues (net) of Rs. 27,564.70 lakhs and net cash outflows amounting to Rs. 3021.01 lakhs for the year ended on that date. These financial statements / consolidated financial statements have been audited by other auditors whose audit reports have been furnished to us by the management and our opinion on the consolidated financial statements, in so far as it relates to the amounts and disclosures in respect of these subsidiaries, and our report in terms of sub section (3) and (11) of Section 143 of the Act, in so far as it relates to the aforesaid subsidiaries, is based solely on the reports of the other auditors.


b. We did not audit the financial statements of two associates in which the share of loss of the Group is Rs.176.66 lakhs. These financial statements have been audited by other auditors whose audit reports have been furnished to us by the management and our opinion on the consolidated financial statements, in so far as it relates to the amounts and disclosures in respect of these associates, and our report in terms of sub section (3) and (11) of Section 143 of the Act, in so far as it relates to the aforesaid associates, is based solely on the reports of the other auditors.


c. We did not audit the financial statements of six joint ventures / jointly controlled entities whose financial statements to the extent of company’s share reflected in the consolidated financial statements with a total assets of Rs. 6,926.67 lakhs as at 31st March 2016, total revenues of Rs. 18,086.36 lakhs and net cash outflows amounting to Rs. 36.26 lakhs for the year ended on that date. These financial statements have been audited by other auditors and have been furnished to us by the management and our opinion on the consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect of these joint ventures, and our report in terms of sub section (3) and (11) of Section 143 of the Act, in so far as it relates to the aforesaid joint ventures, is based solely on such financial statements.


d. We have relied on the unaudited (management certified) financial statements of four joint ventures whose financial statements to the extent of company’s share reflected in the consolidated financial statements with a total assets of Rs. 9,494.13 lakhs as at 31st March 2016, total revenues of Rs. 84.11 lakhs and net cash outflows amounting to Rs. 370.21 lakhs for the year ended on that date. These financial statements/financial information are unaudited and have been furnished to us by the management and our opinion on the consolidated financial statements, in so far as it relates to the amounts and disclosures included in respect of these joint ventures, and our report in terms of sub section (3) and (11) of Section 143 of the Act, in so far as it relates to these joint ventures, is based solely on such unaudited financial statements/financial information.


Our opinion on the consolidated financial statements, and our report on other Legal and Regulatory Requirements below, is not modified in respect of the above matters with respect to our reliance on the work done and reports of the other auditors and the financial statements / financial information certified by the management.


Report on Other Legal and Regulatory Requirements


1. As required by Section 143 (3) of the Act, and based on the auditor’s report of the subsidiaries, associates and jointly controlled entities, we report, to the extent applicable, that:


a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit of the consolidated financial statements;


b. In our opinion, proper books of accounts as required by law relating to preparation of the consolidated financial statements have been kept so far as it appears from our examination of those books and the reports of the other auditors;


c. The Consolidated financial statements dealt with by this Report are in agreement with the relevant books of account maintained for the purpose of


preparation of the consolidated financial statements;


d. In our opinion, the consolidated financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (as amended);


e. On the basis of the written representations received from the directors of holding company as on 31st March, 2016 taken on record by the board of directors of the holding company and reports of the statutory auditors of its subsidiary companies and associate companies, none of the directors of the Group Companies and its associate companies incorporated in India is disqualified as on 31st March 2016 from being appointed as a director in terms of Section 164


(2) of the Act.;


f. The qualification relating to the maintenance of accounts and other matters connected therewith are as stated in the basis for qualified opinion paragraph;


g. With respect to the adequacy of the internal financial controls over financial reporting and the operating effectiveness of such controls, refer to our separate report in "Annexure A", which is based on the auditors’ reports of the Holding


Company, subsidiary companies and associate companies; and


h. With respect to the other matters to be included in the Auditor’s Report in accordance with Rule


11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our knowledge and belief and according to the information and explanations given to us:


i. The Group, its associates and jointly controlled entities have disclosed the impact of pending litigations on its consolidated financial position, as stated in Note No. 19 & 30.4.


ii. The Group, its associates and jointly controlled entities did not have any material foreseeable losses relating to long-term contracts including derivative contracts.


iii. The amounts which are required to be transferred to Investor Education & Protection Fund by the Holding Company have been transferred and there were no amounts which were required to be transferred to Investor Education & Protection Fund by the subsidiary and associate companies.


Annexure "A" to Independent Auditor’s Report


(Referred to in paragraph 1(g) under the heading of ‘Report on Other Legal and Regulatory Requirements’ of our report of even date)


Report on the Internal Financial Controls over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")


We have audited the internal financial controls over financial reporting of Gayatri Projects Limited ("the holding Company") and its subsidiaries (the Holding Company and its subsidiaries together referred to as "the Group") and its associate as of 31st March 2016 in conjunction with our audit of the consolidated financial statements of the Holding Company for the year ended on that date.


Management’s Responsibility for Internal Financial Controls


The respective Board of Directors of the Holding Company, its subsidiary companies and associate companies, which are companies incorporated in India, are responsible for establishing and maintaining Internal Financial Controls based on the Internal Control over Financial Reporting criteria established by the respective Companies considering the essential components of Internal Control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting ("the Guidance Note") issued by the Institute of Chartered Accountants of India (‘ICAI’). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.


Auditors’ Responsibility


Our responsibility is to express an opinion on the internal financial controls over financial reporting of the Holding Company, its subsidiary companies and associate companies, which are companies incorporated in India, based on our audit.


We conducted our audit in accordance with the Guidance Note issued by the Institute of Chartered Accountants of India (‘ICAI’) and the Standards on Auditing, prescribed under Section 143(10) of the Act , to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting were established and maintained and if such controls operating effectively in all material respects.


Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial control system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditors’ judgment including the assessment of the risk of material misstatement of the financial statements, whether due to fraud or error.


We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors, in terms of their reports referred in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the internal financial control system over financial reporting of the Holding Company, its subsidiary and associate companies as aforesaid.


Meaning of Internal Financial Controls over Financial Reporting


A Company’s internal financial control system over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with Generally Accepted Accounting Principles (GAAP). A Company’s internal financial control system over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;


(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorization of the Management and Directors’ of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s Assets that could have a material effect on the financial statements.


Inherent Limitations of Internal Financial Controls over Financial Reporting


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


Opinion


In our opinion, to the best of our information and according to the explanations given to us, the Holding Company, its subsidiary and associate companies, have, in all material respects, adequate internal financial control system over financial reporting and such internal financial control system over financial reporting were operating effectively as at 31st March 2016, based on the internal financial control system over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance note on Audit of Internal Financial Control over Financial Reporting issued by the Institute of Chartered Accountants of India.


Other Matters


We did not audit the Internal Financial Controls over Financial Reporting insofar as it relates to three subsidiaries whose financial statements / consolidated financial statements reflect total assets (net) of Rs. 3,91,971.25 lakhs as at 31st March 2016, total revenues (net) of Rs. 27,564.70 lakhs and net cash outflows amounting to Rs. 3,021.01 lakhs for the year ended on that date; and two associates, in respect of which, the share of loss of the Group is Rs. 176.66 lakhs for the year ended 31st March 2016 has been considered in the consolidated financial statements. Our report on the adequacy and operating effectiveness of the Internal Financial Controls over Financial Reporting for the Holding Company, its subsidiary and associate companies, under section 143(3)(i) of the Act insofar as it relates to the aforesaid subsidiaries and associates, is solely based on the corresponding reports of the auditors of such companies.


For M O S & ASSOCIATES LLP


Chartered accountants


Firm’s Registration No.: 001975S/S200020


S V C REDDY


Place: Hyderabad Partner


Date: 30th May 2016 Membership No.: 224028


CIN: U67190WB2003PTC096617. Trading in Commodities is done through our Group Company Dynamic Commodities Pvt. Ltd. The company is also engaged in Proprietory Trading apart from Client Business.
“2019 © COPYRIGHT DYNAMIC EQUITIES PVT. LTD.”

Disclaimer: There is no guarantee of profits or no exceptions from losses. The investment advice provided are solely the personal views of the research team. You are advised to rely on your own judgment while making investment / Trading decisions. Past performance is not an indicator of future returns. Investment is subject to market risks. You should read and understand the Risk Disclosure Documents before trading/Investing.

Disclosure: We, Dynamic Equities Private Limited are also engaged in Proprietory Trading apart from Client Business. In case of any complaints/grievances, clients may write to us at compliance@dynamiclevels.com

  • Download our Mobile App
  • Available on Google Play
  • Available on App Store
  • RSS