We have audited the accompanying standalone financial
statements of G R Infraprojects Limited ("the Company”),
which comprise the Balance sheet as at March 31 2025, the
Statement of Profit and Loss, including the statement of Other
Comprehensive Income, the Cash Flow Statement and the
Statement of Changes in Equity for the year then ended, and notes
to the standalone financial statements, including a summary of
material accounting policies and other explanatory information
which includes Seven Joint Operations (hereinafter referred to as
standalone financial statements).
In our opinion and to the best of our information and according
to the explanations given to us, the aforesaid standalone financial
statements give the information required by the Companies Act,
2013, as amended ("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 state of affairs of the Company
as at March 31, 2025, its profit including other comprehensive
loss, its cash flows and the changes in equity 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), as 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 together with the ethical requirements
that are relevant to our audit of the 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 we have obtained is sufficient and appropriate
to provide a basis for our audit opinion on the standalone
financial statements.
Emphasis of Matter
We draw attention to note 54 of the standalone financial
statements, regarding an ongoing regulatory matter which
is sub-judice before Hon'ble High Court of Gauhati, Assam.
Pending conclusion of the matter and outcome of the same,
no adjustments have been made to the standalone financial
statements in this regard. Our opinion is not modified in respect
of this 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 financial 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. For each matter below, our description of how our
audit addressed the matter is provided in that context.
We have determined the matters described below to be the key
audit matters to be communicated in our report. We have fulfilled
the responsibilities described in the Auditor's responsibilities
for the audit of the standalone financial statements section of
our report, including in relation to these matters. Accordingly,
our audit included the performance of procedures designed to
respond to our assessment of the risks of material misstatement
of the standalone financial statements. The results of our audit
procedures, including the procedures performed to address the
matters below, provide the basis for our audit opinion on the
accompanying standalone financial statements.
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Key audit matters
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How our audit addressed the key audit matter
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Revenue recognition for long term construction contracts (as described in note 2.2(m) and 22 of the standalone financial statement)
The Company's significant portion of business is undertaken through Our audit procedures included but were not limited to:
long term construction contracts which is in nature of engineering, # Read the Company's revenue recognition accounting policy
procurement and construction basis. and assessed compliance of the policy in terms of Ind AS
Revenue from these contracts, where the performance obligation 115 - Revenue from Contracts with Customers.
satisfied over time, is recognised in proportion to the stage of # obtained an understanding of the Company's processes
completion of the contract. The stage of completion is assessed and controls for revenue recognition process, evaluated
by reference to survey of work performed and /or on completion of the design, and tested the operating effectiveness of the
physical proportion of the contract work. controls over revenue recognition.
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Key audit matters
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How our audit addressed the key audit matter
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Revenue recognition from these contracts involves significant
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Performed test of details, on a sample basis, and read the
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degree of judgments and estimation including identification of
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underlying customer contracts for terms and conditions,
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contractual obligations, the Company's rights to receive payments
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verified underlying supporting used in the determination
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for performance obligation completed till date which includes
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of stage of completion and other relevant supporting
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measuring and recognition of contract assets, change of scope and
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documents such as certified invoice from independent
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determination of onerous obligations which include estimation of
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engineers of the customer or authorized representative of
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contract costs.
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customer, correspondence with customer etc.
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Revenue recognition is significant to the financial statements based
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Performed analytical audit procedures for analysing project
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on the quantitative materiality and nature of construction contracts
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profitability over a period including for identification of low
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involves significant judgements as explained above. Accordingly, we
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or negative margin project. Assess the level of provisioning
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considered this as a key audit matter.
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required, if any for any loss/negative margin projects
including for onerous obligations.
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Performed additional procedures in respect of material
year-end balance of contract assets i.e. tested basis
of measuring of contract assets and certification from
independent engineers of the customer or authorized
representative of the customer in the subsequent to year end.
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Assessed the relevant disclosures made by the company in
accordance with Ind AS 115.
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Impairment assessment of the Investments in Special Purpose Vehicle (SPV) (as described in note 2.2(j) and 5 of the standalone
financial statements)
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The Company has investments in SPVs which are operated under
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Our audit procedures included but were not limited to:
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concession agreement.
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Assessed the Company's accounting policies with
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As per requirement of Ind AS 36 "Impairment of assets”, the
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respect to impairment in accordance with Ind AS 36
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management reviews at each reporting period whether there are any
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"Impairment of assets”.
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indicators of impairment of the investments and where impairment
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Tested the design and the operating effectiveness of internal
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indicators exist, the management estimates the recoverable amounts
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controls over the impairment assessment process including
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of the investments, being higher of fair value less costs of disposal
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assessment of the Company's valuation methodology used
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and value in use. The value in use of the underlying businesses is
determined based on the discounted cash flow projections.
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in determining the recoverable amount of its investment.
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Significant judgements are required to determine the key
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Obtained the management's impairment assessment.
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assumptions used in the discounted cash flow models, such as
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Understood and assessed the key assumptions around key
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annuity, interest rate, discount rate and future operating income as
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driver of the cash flow forecasts including annuity, interest
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well as finance cost based on management's view of future business
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rate, discount rate and future operating income and costs as
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prospects.
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well as finance costs.
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Accordingly, the impairment of the investment in SPVs was
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Performed testing and sensitivity analysis of
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determined to be a key audit matter in our audit of the standalone
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key assumptions.
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financial statements.
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Tested the arithmetical accuracy of the computation of
recoverable amounts of investments.
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Read and assessed the adequacy of the disclosures made
in the standalone financial statements.
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Other Information
The Company's Board of Directors is responsible for the other
information. The other information comprises the information
included in the Annual report 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 such other information is
materially inconsistent with the 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 including
other comprehensive income, cash flows and changes in equity
of the Company in accordance with the accounting principles
generally accepted in India, including the Indian Accounting
Standards (Ind AS) specified under section 133 of the Act read
with the Companies (Indian Accounting Standards) Rules, 2015,
as amended. 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
the 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
statements 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, management is
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
management either intends to liquidate the Company or to cease
operations, or has no realistic alternative but to do so.
Those charged with governance 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.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of
the standalone financial statements, whether due to fraud
or error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the
audit in order to design audit procedures that are appropriate
in the circumstances. Under section 143(3)(i) of the Act, we
are also responsible for expressing our opinion on whether
the Company has adequate internal financial controls with
reference to standalone financial statements in place and
the operating effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and
related disclosures made by management.
• Conclude on the appropriateness of management's use of
the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast
significant doubt on the Company's ability to continue as a
going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor's
report to the related disclosures in the financial statements
or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained
up to the date of our auditor's report. However, future events
or conditions may cause the Company to cease to continue
as a going concern.
• Evaluate the overall presentation, structure and content of the
standalone financial statements, including the disclosures,
and whether the standalone financial statements represent
the underlying transactions and events in a manner that
achieves fair presentation.
We communicate with those charged with governance regarding,
among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships
and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the standalone financial statements
for the financial year ended March 31, 2025 and are therefore
the key audit matters. We describe these matters in our auditor's
report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our
report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits
of such communication.
Other Matter
We did not audit the financial statements and other financial
information, in respect of seven joint operations, whose financial
statements include total assets of ? 9,980.64 lakhs as at March
31, 2025, and total revenues of ? 25,323.64 lakhs and net cash
outflows of ? 1,183.97 lakhs for the year ended on that date.
These financial statements and other financial information of
the said joint operations have been presented solely based on
the information compiled by the management and approved
by the Board of Directors but not subjected to audit by their
auditors. These unaudited financial statements and other
unaudited financial information have been furnished to us by the
management. Our opinion, in so far as it relates to the amounts
and disclosures included in respect of these joint operations
and our report in terms of sub-sections (3) of Section 143 of
the Act, in so far as it relates to the aforesaid joint operations, is
based solely on such unaudited financial statements and other
unaudited financial information. In our opinion and according to
the information and explanations given to us by the Management,
these unaudited financial statements and other financial
information of Joint operations, are not material to the Company.
Our opinion above on the standalone financial statement, and
our report on Other Legal and Regulatory Requirements below,
is not modified in respect of the above matter with respect to
our reliance on the financial statements and other financial
information certified by the Management.
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 the "Annexure 1” a statement on the matters specified in
paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, 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;
(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 except
for the matters stated in the paragraph (2)(i)(vi) below
on reporting under Rule 11(g) of the Companies (Audit
and Auditors) Rules, 2014 (as amended);
(c) The Balance Sheet, the Statement of Profit and Loss
including the Statement of Other Comprehensive
Income, the Cash Flow Statement and Statement
of Changes in Equity 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, read with
Companies (Indian Accounting Standards) Rules,
2015, as amended;
(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 is disqualified as on March 31, 2025 from
being appointed as a director in terms of Section 164
(2) of the Act;
(f) The modification relating to the maintenance of
accounts and other matters connected therewith are
as stated in paragraph (b) above on reporting under
Section 143(3)(b) and paragraph (2)(i)(vi) below on
reporting under Rule 11(g) of the Companies (Audit
and Auditors) Rules, 2014 (as amended);
(g) With respect to the adequacy of the internal financial
controls with reference to these standalone financial
statements and the operating effectiveness of such
controls, refer to our separate Report in "Annexure 2”
to this report;
(h) In our opinion, the managerial remuneration for the
year ended March 31, 2025 has been paid / provided
by the Company to its directors in accordance
with the provisions of section 197 read with
Schedule V to the Act;
(i) 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, as
amended 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
38A 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 were no amounts which were required
to be transferred to the Investor Education and
Protection Fund by the Company.
iv. a) The management has represented that,
to the best of its knowledge and belief,
as disclosed in the note 55(iii) 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,
whether, 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;
b) The management has represented that,
to the best of its knowledge and belief,
as disclosed in the note 55(iv) 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, that the Company shall,
whether, 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; and
c) Based on such audit procedures performed
that have been considered reasonable and
appropriate in the circumstances, nothing
has come to our notice that has caused
us to believe that the representations
under sub-clause (a) and (b) contain any
material misstatement.
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 Act.
vi. Based on our examination which included test
checks, the Company has used accounting
software for maintaining its books of account
which has a feature of recording audit trail
(edit log) facility and the same has operated
throughout the year for all relevant transactions
recorded in the software except that, audit
trail feature is not enabled for direct changes
to data when using certain access rights, as
described in the note 52 to the standalone
financial statements.
Further, during the course of our audit we did not
come across any instance of audit trail feature
being tampered with in respect of the accounting
software where audit trail was enabled.
Additionally, the audit trail of the relevant prior
years has been preserved by the Company as per
the statutory requirements for record retention.
For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E/E300003
per Sukrut Mehta
Partner
Membership Number: 101974
UDIN: 25101974BMOCYH4740
Place of Signature: Ahmedabad
Date: May 15, 2025
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