GPT Infraprojects Limited
Report on the Audit of the Standalone Financial StatementsOpinion
We have audited the accompanying standalone financial statements of GPT Infraprojects Limited ("the Company”), which includes its joint operations, which comprise the Balance Sheet as at March 31, 2025, and the Statement of Profit and Loss, including Other Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows for the year then ended, and notes to the standalone financial statements, including material accounting policy information and other explanatory information.
In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of report of other auditors (including joint auditor, Agarwal Lodha & Co.) on separate financial statements and other financial information of thirty (30) joint operations, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 ("the Act') in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with Companies (Indian Accounting Standards) Rules, 2015, as amended ("Ind AS”) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2025, its profit, other comprehensive income, changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Standalone Financial Statements' section of our report. We are
independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India ("ICAI”) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our opinion.
Emphasis of Matter
We draw attention to Note no. 34(B) of the audited standalone financial statements in regard to the ongoing arbitration proceedings on a completed project initiated by the Company's Joint operation with one of its customers. Further this arbitration proceeding is on account of dispute between the parties, which has led to uncertainty on the recovery of the Company's share of unbilled revenue, trade receivables and other assets aggregating to Rs. 662.58 lacs with regards to the said Project due from customer. Accordingly, no provision has been provided in the audited standalone financial statements of the Company for the year ended March 31, 2025.
Our opinion is not modified in respect of the above matter.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements for the year ended March 31, 2025. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below for key audit matters to be communicated in our report.
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Sr.
No
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Key Audit Matter
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How the Key Audit Matter was addressed in our audit
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1
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Revenue recognition - Construction Contracts (Refer to Note no. 42 of the standalone financial statements)
Revenue recognition involves usage of percentage of completion ("POC”) method as per the input method prescribed under Ind AS 115 - Revenue from contracts with customers ("Ind AS 115”) where performance obligations are satisfied over time. It is determined based on proportion of contract costs incurred to date compared to estimated total contract costs till completion, which involves following factors:
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Our audit procedures in respect of this area included:
1. Evaluated the accounting policy for revenue recognition of the Company and assessed compliance of the policy in terms of principles enunciated under Ind AS 115.
2. Verified controls over revenue recognition with specific focus on determination of progress of completion, recording of costs incurred and estimation of total project cost.
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Sr.
No
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Key Audit Matter
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How the Key Audit Matter was addressed in our audit
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i) there is an inherent estimation uncertainty relating to
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3.
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Inspected the underlying customer contracts, verified
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determination of the progress of each contract, cost incurred
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costs incurred with estimated total project costs to identify
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till date and around the estimation of total future cost to
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significant variations and assess whether those variations
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complete the remaining performance obligation on the
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have been considered in estimating the total project costs and
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contract, given the customized nature of the contracts.
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consequential determination of stage of completion.
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ii) the estimation of total cost to complete the contract involves
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4.
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Verified the management's evaluation process to recognize
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significant judgement throughout the period of contract
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revenue over a period of time, status of completion for projects
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and is subject to revision as the contract progresses based
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and total cost estimates.
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on latest available information and also involves critical estimates to make provision for onerous contract, if any.
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5.
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Evaluated the contracts to determine the level of provisioning required for loss making contracts/onerous obligations, if any
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iii) Identification of contractual obligations in respect of Company's rights to receive payments for performance completed till date.
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6.
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Assessed the disclosures made by management is in compliance of Ind AS 115.
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iv) Estimation of period of recovery of receivables, consequential
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revised contract price, price escalations.
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In view of the above and considering the materiality of the amounts involved and the significance of degree of the judgement and estimation uncertainty, this has been identified as a key audit matter.
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2
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Recoverability of contract assets comprising unbilled
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Our audit procedures in respect of this area included:
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revenue accrued on construction contracts, accrued unbilled price variations.
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1.
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Read the underlying construction contracts.
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(Refer to Note no. 34(B) and 42 of the Standalone Financial Statements)
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2.
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Verified on a sample basis the computation of unbilled revenue accrued on construction contracts and accrued unbilled price variations.
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As of March 31, 2025, the value of contract assets aggregated Rs. 36,520.12 lacs which amounts to around 40% of the total assets of the Company.
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3.
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Verified on a sample basis subsequent invoicing by the Company and collections from customers to identify if there were any indicators of impairment of the contract assets.
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Accrual of unbilled revenue involves significant judgements including determination of total contract costs including expected cost to complete the project and percentage of completion of
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4.
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In respect of material contract balances, inspected relevant contracts and correspondence with the customers.
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the respective construction contracts of the Company The
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5.
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Verified management's control for evaluation of recoverability
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recoverability of the same is mainly based on certification of the
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of assets.
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work done by the customers as per the specific requirements of the contracts.
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6.
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Verified that the adequate disclosure has been made in respect of revenue from contracts with customers, contract assets
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The unbilled price variations are accrued as per the relevant
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(unbilled revenue) etc in compliance with the requirements of
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escalation index of material and labour on specific contracts on the basis of amount of expenditure incurred by the Company during the period, under subject to approval from the customer.
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Ind AS 115 - ‘Revenue from contracts with customer'.
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We have considered recoverability of the contract assets as a key audit matter as it involves key management's estimates and judgements of the percentage completion of the contract, estimated total project cost and compliance with the key contractual terms over the contract period.
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Information Other than the Standalone Financial Statements and Auditor’s Report Thereon
The Company's Board of Directors is responsible for the other information. The other information comprises the corporate information, Chairman's statement, Director's report, Management discussion and analysis and report on Corporate Governance, but does not include the standalone financial statements and our auditor's report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified 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 of 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 standalone financial statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, the Management and Board of Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Company's financial reporting process.
Auditor’s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
We give in "Annexure A” a detailed description of Auditor's responsibilities for Audit of the Standalone Financial Statements.
Other Matter
(a) We did not audit the financial statements and other financial information of twenty five (25) joint operations included in the standalone financial statements of the Company, whose financial statements and other financial information reflect Company's share of total assets of Rs. 6,922.03 lacs as at March 31, 2025, Company's share of total revenue of Rs. 19,385.82 lacs, Company's share of total net profit after tax of Rs. 739.10 lacs, and Company's share of total comprehensive income of Rs. 739.10 lacs for the period from April 01, 2024 to March 31, 2025 and Company's net cash flows of Rs.254.64 lacs for the year ended March 31, 2025 as considered in the financial statements of these joint operations. The financial statements and other financial information of these joint operations have been audited by other auditors (including one of the joint auditors of the Company, Agarwal Lodha & Co.) whose reports have been furnished to us and our opinion in so far as it relates to the amounts and disclosures included in respect of these joint operations, is based solely on the report of such auditors.
(b) We did not audit the financial statements and other financial information of five (5) joint operations included in the standalone financial statements of the Company, whose financial statements and other financial information reflect Company's share of total assets of Rs. 244.90 lacs as at March 31, 2025, Company's share of total revenue of Rs. 1.15 lacs, Company's share of total net profit after tax of Rs. (51.41) lacs, and Company's share of total comprehensive income of Rs. (51.41) lacs for the period from April 01, 2024 to March 31, 2025 and Company's net cash flows of Rs. 0.10 lacs for the year ended March 31, 2025 as considered in the financial statements of these joint operations. The financial statements and other financial information of these joint operations have been certified by the management whose reports have been furnished to us. According to the information and explanations given to us by the Management, these financial informations are not material to the Company.
Our opinion is not modified in respect of above matters.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2020 ("the Order”), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in "Annexure B” a statement on the matters specified in paragraphs 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 best of 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 the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss including other comprehensive income, the Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the books of account.
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on March 31, 2025 taken on record by the Board of Directors, none of the directors are disqualified as on March 31, 2025 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy of the internal financial controls with reference to standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure C”.
(g) 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:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements - Refer Note no. 34(A) to the standalone financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. 1. The Management has represented that, to the best
of its knowledge and belief as disclosed in Note no. 49(iv) to the Standalone Financial Statements, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities ("Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries”)
or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
2. The Management has represented, that, to the best of its knowledge and belief as disclosed in Note no. 49(v) to the Standalone Financial Statements, no funds have been received by the Company from any persons or entities, including foreign entities (Funding Parties), with the understanding, whether recorded in writing or otherwise, as on the date of this audit report, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
3. Based on the audit procedures performed that have been considered reasonable and appropriate in the circumstances, and according to the information and explanations provided to us by the Management in this regard nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e) as provided under (1) and (2) above, contain any material mis-statement.
v. The interim dividend declared and paid by the Company during the year and until the date of this audit report is in accordance with section 123 of the Companies Act 2013.
vi. Based on our examination, the Company has used an accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility. The audit trail feature has been operated throughout the year for all transactions recorded in the accounting software. Further, during the course of our audit, we did not come across any instance of the audit trail feature being tampered with. Additionally, the audit trail of prior year has been preserved by the Company as per the statutory requirements for record retention.
3. In our opinion, according to information, explanations given to us, the remuneration paid by the Company to its directors is within the limits laid prescribed under Section 197 read with Schedule V of the Act and the rules thereunder.
For M S K A & Associates For Agarwal Lodha & Co
Chartered Accountants Chartered Accountants
ICAI Firm Registration No.105047W ICAI Firm Registration No. 330395E
Dipak Jaiswal Vikram Agarwal
Partner Partner
Membership No.: 063682 Membership No.: 303354
UDIN: 25063682BMOTOH3150 UDIN: 25303354BMLBVM4887
Place: Kolkata Place: Kolkata
Date: May 16, 2025 Date: May 16, 2025
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