Moneycontrol
SENSEX NIFTY
you are here:

Garden Reach Shipbuilders & Engineers Ltd.

BSE: 542011 | NSE: GRSE | Series: NA | ISIN: INE382Z01011 | SECTOR: Engineering - Heavy

BSE Live

Jul 03, 16:00
217.90 0.45 (0.21%)
Volume
AVERAGE VOLUME
5-Day
32,339
10-Day
38,160
30-Day
38,059
44,710
  • Prev. Close

    217.45

  • Open Price

    221.00

  • Bid Price (Qty.)

    217.00 (73)

  • Offer Price (Qty.)

    219.70 (1500)

NSE Live

Jul 03, 15:57
219.30 1.90 (0.87%)
Volume
AVERAGE VOLUME
5-Day
375,419
10-Day
450,896
30-Day
499,315
385,429
  • Prev. Close

    217.40

  • Open Price

    220.35

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    219.30 (4312)

Annual Report

For Year :
2018

Auditor's Report

Report on the Ind AS Financial Statements

We have audited the accompanying ind AS financial statements of Garden Reach Shipbuilders & Engineers Limited (“the Company”), which comprise the Balance Sheet as at 31 March, 2018, 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 then ended, and a summary of the significant accounting policies and other explanatory information (in which are incorporated the returns for the year ended on that date audited by the Branch auditor of the Company''s Branch at Ranchi).

Management’s Responsibility for the Ind AS Financial Statements

The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (“the Act) with respect to the preparation of these Ind AS financial statements that give a true and fair view of the state of affairs, profit or loss (including other comprehensive income), changes in equity and the Cash Flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act,

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company 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 the accounting records, relevant to the preparation and presentation of the Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error,

Auditor''s Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements based on our 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 of the Ind AS financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Ind AS financial statements are free from material misstatement,

An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the Ind AS 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 Company''s Directors, as well as evaluating the overall presentation of the Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Ind AS financial statements.

Opinion

in our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS 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 including the Ind AS, of the state of affairs of the Company as at 31 March, 2013 and its profit (including other comprehensive income), its changes in equity and the cash flows for the year ended on that date,

Other Matter

We did not audit the financial statements of 1 (One) branch included in the financial statements of the Company whose financial statements reflect total assets of Rs. 3,168.13 lakh as at 31 March, 2018 and total revenues of Rs. 581.60 lakh for the year ended on that date, as considered in the financial statements. These Financial Statements have been audited by the Branch Auditor whose report has been furnished to us, and our opinion in so far as it relates to the amounts and disclosures included in respect to the branch, is based on the report of such branch auditor.

Our opinion on the financial statements and our report on the Other Legal and Regulatory Requirements below is not modified in respect of the above matter with respect to our reliance on the work done by and the report of the other aud itor,

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 of the Act, we give in the Annexure A a statement on the matters specified in paragraphs 3 and4oftheOrder.

2. As required by section 143 (3) of the Act, we report that:

t. 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.

ii. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books,

iii. The report on the accounts of Ranchi Branch of the Company audited under Section 143(8) of the Act by branch auditor has been sent to us and has been properly dealt with by us in preparing this report,

iv. The Balance Sheet, the Statement of Profit and Loss, the Cash flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.

v. In our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards prescribed under section 133 of the Act.

vi. On the basis of the written representations received from the directors as on 31 March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2018 from being appointed as a director in terms of sect ion 164 (2) of the Act,

vii. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure B

viii. 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 information and according to the explanations given to us:

a. The Company has disclosed the impact of pending litigations on its financial position in its Ind AS financial statements - Refer Note No, 29 to the Ind AS financial statements,

b. The Company did not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses.

c. No amount was required to be transferred to the Investor Education and Protection Fund by the Company.

3. As required by sub-section (5) of section 143 of the Act, we give in Annexure C, a statement on the matters contained in directions issued by Comptroller & Auditor General of India in terms of aforesaid section.

“Annexure A” to the Independent Auditor''s Report

Statement referred to in paragraph ''Report on Other Legal and Regulatory Requirements’ of our report of even date to the members of Garden Reach Shipbuilders & Engineers Limited on the Ind AS Financial Statements for the year ended 31''’ March, 2018.

(i) a) The Company has maintained proper records showing full particulars including quantitative details and situation of its fixed assets.

b) The fixed assets have been physically verified by the management during the year at periodical intervals as per the programme of physical verification of fixed assets. To the best of our knowledge, no material discrepancy was noticed on such verification and in our opinion the periodicity of such physical verification is reasonable having regard to the size of the Company and nature of its assets.

c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.

(ii) The inventories (other than those lying with third parties), have been physically verified during the year by the management at reasonable intervals, in respect of goods lying with third parties, these have substantially been confirmed by them. The discrepancies between physical stocks and book records arising out of physical verification, which were not material, have been dealt with in the books of account.

(iii) The Company has not granted any loan, secured or unsecured, to companies, firms, limited liability partnerships or other parties covered in the register maintained under section 189 of the Act, Therefore, clauses (iii) (a), (b) and (c) of paragraph 3 of the said order are not applicable to the Company.

(iv) In our opinion and according to the information and explanations given to us, there are no loans, guarantees and securities granted in respect of which provisions of Section 185 and 186 of the Companies Act. 2013 are applicable. Based on our audit procedures performed and according to information and explanations given by the management, the Company has complied with provisions of section 186 of the Act in respect of investments,

(v) The Company has not accepted any deposit within the meaning of section 73 to 76 or any other relevant provisions of the Act and the rules framed there under. The directives issued by the Reserve Bank of India are not applicable to the Company.

(vi) We have broadly reviewed the cost records maintained by the Company in respect of products where pursuant to the Companies (Cost Records & Audit) Rules, 2014, prescribed by the Central Government, the maintenance of Cost records has been prescribed under section 148(1) of the Act and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. We, however, as not required, have not made a detailed examination of such records.

(vii)(a) According to the information and explanations given to us and based on the examination of the records of the Company as provided to us, the Company is regular in depositing undisputed statutory dues including provident fund, employees'' state insurance, income tax, sales tax, service tax, goods and service tax, duty of customs, duty of excise, value added tax, cess and other statutory dues, to the extent applicable, with appropriate authorities and no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31:'' March, 2018 for a period of more than six months from the date of becoming payable.

b) The disputed statutory dues aggregating to Rs. 3,781,68 Lakh that have not been deposited on account of matters pending before appropriate authorities are as under:

SI.

No.

Name of the Statute

Nature of dues

Period to which pertain

Amount (Rs. in lakh)

Forum where the dispute is pending

1

West Bengal Value Added Tax Act, 2003

Value Added Tax

2007-08

506,83

West Bengal Taxation Tribunal

2

Jharkhand Value Added Tax Act, 2005

Value Added Tax

2004 05

8,80

Commercial Tax Tribunal, Jharkhand

3

Central Sales Tax Act, 1956

Central Sales Tax

2004-05

1748

Commercial Tax Tribunal, Jharkhand

4

Central Sales Tax Act, 1956

Central Sales Tax

2009-10

188,31

Commissioner of Commercial Taxes, Jharkhand

5

Central Sales Tax Act. 1956

Central Sales Tax

2012-13

283,71

Revision petition and stay petition filed before the Commissioner of Commercial Taxes, Ranchi,

6

Central Sales Tax Act, 1956

Central Sales Tax

201011

1,201,93

Commissioner of Commercial Taxes

7

Jharkhand Value Added Tax Act, 2005

Value Added Tax

201011

768,01

Commissioner of Commercial Taxes

8

Central Excise Act, 1944

Central Excise

2001-02

to

2005-06

17.90

Commissioner of Central Excise (Appeals)

9

Central Excise Act, 1944

Central Excise

2011-12

75.54

CESTAT

10

Central Excise Act, 1944

Central Excise

2016-17

106,54

Commissioner of Central Excise

11

Finance Act, 1994

Service Tax

2003-04

to

2007-08

121.30

CESTAT

12

Income Tax Act, 1961

Income Tax

2009-10

18,56

Deputy Commissioner of Income Tax (Rectification)

13

Income Tax Act, 1961

Income Tax

2008-09

352.85

Commissioner of Income Tax (Appeal)

14

Income Tax Act, 1961

Income Tax

2011-12

111.33

Commissioner of Income Tax (Appeal)

15

Income Tax Act, 1961

Income Tax

2013-14

0,67

Commissioner of Income Tax (Appeal)

16

Income Tax Act, 1961

Income Tax

2014-15

1,92

Commissioner of Income Tax (Appeal)

Total

3,781.68

(viii) The Company has not defaulted in repayment of loans or borrowings to banks. The Company has not taken any loan from financial institutions or Government and has not issued any debentures.

(ix) The Company has not raised any money by way of initial public offer or further public offer (including debt instruments) during the year. On the basis of our examination and according to the information and explanations given to us, money raised by way of term loans have been applied for the purpose for which the loans were obtained.

(x) According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.

(xi) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.

(xii) In our opinion, the Company is not a nidhi company. Therefore, clause (xii) of paragraph 3 of the said order is not applicable to the Company.

(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards,

(xiv) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year

(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with them. Accordingly, clause (xv) of paragraph 3 of the said order is not applicable to the Company,

(xvi) According to the information and explanations given to us, the provisions of Section 45-JA of the Reserve Bank of India Act, 1934 are not applicable to the Company.

Report on the Internal Financial Controls 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 Garden Reach Shipbuilders & Engineers Limited (the Company) as of 31 March, 2018 in conjunction with our audit of the Ind AS financial statements of the Company for the year ended on that date.

Management''s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internal financial controls based on the internal control 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 Controls over Financial Reporting 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 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.

Auditor''s Responsibility

Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both issued by the ICAI, 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 operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls 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 auditor''s judgement, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error,

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company''s internal financial control 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. A company''s internal financial control over financial reporting includes those policies and procedures that:

(l) Pertain to the maintenance of records that, in 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 authorisations of management and directors of the Company; and

(3) Provide reasonable assurance regarding prevention or timely detection of unauthorised 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 controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected, Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March, 2018, based on the internal control 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 Controls Over Financial Reporting issued by the ICAI.

''Annexure C to the independent Auditor''s Report

Si.

No.

Directions

Auditor''s Comments

1

Whether the company has clear title/lease deeds for freehold and leasehold land respectively? If not please state the area of freehold and leasehold land for which title/lease deeds are not available.

Yes, except for the following -

SI.

No.

Leasehold Freehold

Area of land

Remarks

1

Leasehold Land at Belur Unit

5,29 Acres

Lease agreement has expired and renewal is under process.

2

Leasehold Land at FOJ unit

3,539.47 Sq. Mtrs.

Lease agreement has expired and renewal is under process. The area for land has been taken from the expired agreement.

3

Leasehold Land at FOJ unit

2,140.00 Sq, Mtrs.

Lease agreement has expired and renewal is under process. The area for land has been taken from available correspondences between the Company and the lessor,

4

Leasehold Land at Taratala Unit

13,721.68 Sq. Mtrs,

The said land was allotted to the Company by Kolkata Port Trust (KOPT). The area lias been confirmed from the allotment letter of KOPT to the Company.

5

Land at 61 Park Unit

32 Bighas, 6 Cottahs

The said land was allotted to the Company by Govt, of India without any cost. Although mutation is in the name of the Company, documents of title were not made available to us for our verification, The area has been taken from available correspondences with the Company,

6

Land at DEP, Ranchi

62 Acres

Title deed of land is not held in the name of the Company.

51.

No.

Directions

Auditor''s Comments

2

Whether there are any cases of waiver/ write off of debts/ loans/ interest etc,, if yes, the reasons there for and the amount involved,

No such case of waiver of debts/loans/interest etc. has come to our notice nor have we been informed of any such case by the management. There are following cases of write off of loan, debt, Interest, etc.:

Nature

Amount involved

Reason for write off

(Rs. In lakh)

Loan

134.00

Full provision was made in Accounts of 2003-04. After full and final settlement with (be party due to its winding up, the balance is no more realisable and hence written off (Refer note 41 to the financial statements),

Interest receivable on above loan

257.75

Advance to vendor

8.21

Due to winding up, the balance is no more realisable and hence written off.

Debtors

4.10

Pertains to charges (Liquidated damages, defect liability etc.) not accepted by customers and hence written off.

3

Whether proper records are maintained for inventories lying with third parties & assets received as gift/ grant(s) from Government or other authorities.

Records are maintained for inventories lying with third parties. There is no such case of gift received from Govt, or other authorities.

For 6. P. Agrawal & Co.

Chartered Accountants

Firm''s Registration No, - 302082E

(CA. Sunita Kedia)

Place of Signature; Kolkata Partner

Date: the 22nd Day of June, 2018 Membership No. 60162