Gayatri Projects Ltd Auditor Reports

To the Members of Gayatri Projects Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the Standalone Financial Statements of Gayatri Projects Limited ("the Company"), which comprise the Balance Sheet as at 31st March, 2022, and 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 notes to the Standalone Financial Statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as "the Standalone Financial Statements").

In our opinion and to the best of our information and according to the explanations given to us, 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 the 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 31st March, 2022, and the Loss and 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), as specified under Section 143(10) of the Companies Act, 2013. Our responsibilities under those standards are further described in the Auditors 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 standalone financial statements under the provisions of the Companies Act, 2013 and the Rules made 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.

Material Uncertainty Related to Going Concern

We draw attention to Note No. 35.27 of the Standalone Financial Statements which states that during the year the company has incurred a loss of H 92,629.16 Lakhs and substantial erosion in the net worth of the company as at 31st March 2022 and note 35.26 regarding the company defaulted in repayment of loans and other financial and other credit facilities extended to the company by lenders, issue of various legal and other notices by lenders for recovery of their dues etc., which indicate the existence of uncertainty that may cast doubt about the companys ability to continue as a going concern. However, the Standalone Financial Statements for the financial year have been prepared on a going concern basis for the detailed reasons given in the said Note No. 35.27.

Our Opinion is not modified in respect of the above matter.

Emphasis of Matters

(Note Nos. referred hereunder are with reference to respective Notes forming part of the Standalone Financial Statements)

We draw attention to the following matters:

i) As stated in Note No.35.17, the Investee Company in which the Company has invested by way of Compulsorily Convertible Cumulative Preference Shares ("CCCPS"), has incurred considerable losses, there has been significant erosion of Networth and further, business operations of the investee company are severely impacted due to COVID - 19 Pandemic. No provision for diminution / impairment for carrying value of the investment is provided for the year ended 31st March, 2022 and the financial statements of the said investee company have been prepared on going concern basis for the detailed reasons stated in the said note.

ii) As stated in Note No.35.18, regarding the status and recoverability of the investments / unsecured loan/subordinate debt infused by the company in an associate company which has been incurring operating losses during the past few years, the financial statements of the said associate company have been prepared on a going concern basis for the detailed reasons stated in the said note.

iii) As stated in Note No.35.19, the Inter Corporate Loan grouped under Non-current Loans and accumulated interest thereon is long pending for recovery.

iv) As stated in Note No. 35.20, the recovery of trade receivables is delayed for the detailed reasons stated in the said note, the road project was terminated by the NHAI and toll rights were handed over to the NHAI. As per the information and explanations given to us, the termination payment calculated by the NHAI is very low as compared to the expected termination payment. Further, as stated in the same note, the company has given an irrevocable and unconditional corporate guarantee to a subsidiary of the associate company, which has defaulted in repayment of dues to the lenders.

v) As stated in Note No. 35.21, the amount receivable from the erstwhile associate company is long pending for recovery as the same is based on the receipt of claims by the said erstwhile associate company.

vi) As stated in Note No.35.22, the work advances in respect of certain contract works given to a subcontractor grouped under Other Current Assets which are long pending for recovery.

vii) As stated in the Note No.35.23, as per the agreement dated 14th September, 2020, the Company and Gayatri Highways Limited ("GHL") - an Associate Company jointly and severally agreed to repay the loan availed by GHL from IL&FS Financial Services Limited (IL&FS) and repaid an amount of H 4,590.00 lakhs since September, 2020. The repayment of remaining loan installments is pending since March, 2021 installment. As the company / GHL failed to repay the debt due to the IL&FS, the said IL&FS has filed application under section 7 of the Insolvency & Bankruptcy Code, 2016 before the Honble National Company Law Tribunal, Hyderabad Bench which is not admitted till the date of approving the standalone financial statements.

viii) As stated in the Note No.35.24, the recovery of work & other advances and receivables got delayed from one sub-contractor for the reasons stated in the said note.

ix) As stated in the Note No.35.25, wherein it is explained the COVID - 19 Pandemic effects and impact on the business operations and cash flows of the company. As stated in the said note, the actual effect of Covid-19 pandemic will be known based on the future developments.

x) As stated in the Note No.35.26, the Company has defaulted in repayment of dues to the lenders for the reasons stated in the note and the lenders have recalled the financial facilities extended to the company. The loans and other facilities sanctioned to the company have been classified as Non-Performing Assets by the lenders and also issued various notices for recovery of their dues and lenders have filed petitions before Debt Recovery Tribunal (DRT)/other forums for recovery of the dues as stated in the said note. Further, two lenders, one operational creditor and IL&FS have filed applications under section 6 and 7 of the Insolvency & Bankruptcy Code, 2016 before the Honble National Company Law Tribunal, Hyderabad Bench which are not admitted till the date of approving the Standalone Financial Statements.

xi) As stated in the Note No.35.29, the bank guarantee given by the company in favour of Western Coalfields Limited ("WCL") on behalf of Jinbhuvish Power Generation Private Limited ("JPGPL") has been encashed and the same shall be recognized in the subsequent financial year for the reasons stated in the said note.

Our opinion is not modified in respect of these matters. 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 31st March, 2022. 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 to be key audit matters to be communicated in our report.

S.no. Key Audit Matter	Audit Process
1 Revenue recognition and measurement of contract assets in respect of unbilled amounts	We have obtained the procedure and process involved in estimating the percentage of completion of the projects.
The management of the company has applied significant judgement in determining the revenue to be recognised in case of performance obligation satisfied over a period of time; revenue recognition is done by measuring the progress towards complete satisfaction of performance obligation.	We have also obtained and verified the costs incurred on the project/works up to the reporting date for the revenues accounted in respect of works on sampling basis.
Revenue is recognized on fixed price construction contracts in accordance with the percentage of completion basis, which necessarily involve technical estimates of the percentage of completion, and costs to completion, of each contract / activity, on the basis of which profits and losses are accounted.	We have also obtained the certified copies (i.e. percentage of completed work approved by the relevant authorities) of works executed till the reporting date in respect of revenues accounted on sampling basis.
When the outcome of the contract is ascertained reliably, contract revenue is recognized at cost of work performed on the contract plus proportionate margin, using the percentage of completion method. Percentage of completion is the proportion of cost of work performed up to the date, to the total estimated contract costs.	We have also performed analytical procedures for reasonableness of revenues recognised.
The stage of completion of contracts is measured by reference to the proportion that contract costs incurred for work performed up to the reporting date bear to the estimated total contract costs for each contract. Further at the reporting date, revenue is accrued for costs incurred against work performed and which are not billed and further measurement of work completed/cost incurred during the period for recognition of unbilled revenue.	We have also verified the reasonableness of the estimation of remaining costs to be incurred to complete the project / work and profit / loss estimated in the project / work.
	Reviewed the delivery and collection history of customers against whose contracts unbilled revenue is recognised
	Tested relevant contracts for measurement of work completed during the period for unbilled revenue.

Information Other than the Standalone Financial Statements and Auditors Report Thereon

The Companys Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and analysis, Boards Report including annexures to Boards Report, Business Responsibility Report, Corporate Governance and Shareholders Information, but does not include the Standalone Financial Statements and our auditors 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 Companys 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 Standalone Financial Statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows 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 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 Companys 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.

Those Board of Directors are also responsible for overseeing the Companys financial reporting process.

Auditors 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 auditors report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that as 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 Companies Act, 2013, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system 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 managements 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 Companys ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the Standalone 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 auditors 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.

Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements.

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 of the current period and are therefore the key audit matters. We describe these matters in our auditors 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.

Report on Other Legal and Regulatory Requirements

1) As required by the Companies (Auditors Report) Order, 2020 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, we give in the "Annexure A" 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 Flows 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 31st March, 2022 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2022 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 over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".

g) With respect to the other matters to be included in the Auditors Report in accordance with the requirements of Section 197(16) of the Act, as amended, in our opinion and to the best of our information and according to the explanations given to us, the company has paid or provided for managerial remuneration for the year ended 31st March 2022 in accordance with the requisite approvals mandated by the provisions of section 197 of the Act read with schedule V to the Act.

h) With respect to the other matters to be included in the Auditors 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. As stated in Note no. 35.1(a), of the Standalone Financial Statements, the Company has disclosed the impact of pending litigations on its financial position in its Standalone Financial

Statements.

ii. As per the information and explanations given by the Company, the Company did not have any longterm contracts including derivative contracts for which there were any material foreseeable losses.

iii. As per the information and explanations given by the Company, there has been no delay in transferring the amounts which are required to be transferred to Investor Education & Protection Fund.

iv. (a). The management has represented that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts, 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 person(s) or entity(ies), 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, other than as disclosed in the notes to the accounts, no funds have been received by the company from any person(s) or entity(ies), 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 audit procedures which we considered reasonable and appropriate in the circumstances, nothing has come to the notice that has caused us to believe that the representations under sub-clause (i) and (ii) contain any material misstatement.

v. The company has not declared or paid any dividend during the year in contravention of the provisions of section 123 of the Companies Act, 2013.

annexure a to the auditors report

The Annexure referred to in the Independent Auditors Report to the members of the Company on the Standalone Financial Statements for the year ended 31st March, 2022, we report that:

(i) In respect of Property, Plant & Equipment and

Intangible Assets:

a. (A) In our opinion and as per the information and explanations given to us, the Company has maintained proper records showing particulars, including quantitative details and the situation of the Property, Plant, and Equipment;

(B) In our opinion and as per the information and explanations given to us, the Company does not have any intangible assets and hence, paragraph 3(i)(a)(B) of the Order is not applicable for the current year under report.

b. The management of the company has verified the Property, Plant and Equipment at reasonable intervals during the year. According to the information and explanations given to us, no material discrepancies were noticed in such physical verification.

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 disclosed in the financial statements are held in the name of the Company.

d. According to the information and explanations given to us and on the basis of our examination of the records, the Company has not revalued its Property, Plant, and Equipment or intangible assets or both during the year;

e. In our opinion and as per the information and explanations given to us, no proceedings have been initiated or are pending against the company for holding any Benami property under the "Benami Transactions (Prohibition) Act, 1988 and Rules made thereunder;

(ii) In respect of inventories

a. According to the information and explanations given to us, the inventories have been physically verified during the year by the management. In our opinion, the coverage and procedure of such verification by the management is appropriate. The discrepancies noticed on the physical verification of inventories as compared to the book records, which in our opinion were not material, have been properly dealt with.

b. According to the information and explanations given to us and as disclosed in note 21.12 of Standalone Financial Statements, the Company has been sanctioned working capital limits in excess of H 5 Crores from the banks on the basis of security of current assets; the quarterly returns or statements filed by the Company with such banks are in agreement with the books of accounts other than those as set out below:

(Rs in Lakhs)

Name of the Banks	Quarter Ended	Amount disclosed as per quarterly return/ statement (a)	Amount as per books of account(b)	Amount of Difference (a-b)	Reason for Discrepancies
Consortium Banks	30th June 2021	1,98,444.00	1,65,584.75	32,859.25	Refer below note
Consortium Banks	30th September 2021	2,06,195.00	1,68,534.29	37,660.71	Refer below note
Consortium Banks	31st December 2021	1,73,099.00	1,58,195.25	14,903.75	Refer below note
Consortium Banks	31st March 2021	1,40,025.00	1,36,535.96	3,489.04	Refer below note

Note: As per the information and explanations given to us and stated in the note no. 21.12, the company has submitted quarterly returns based on the provisional & estimated figures of work in progress & inventory obtained from project site offices.

(iii) a. According to the information and explanations given to us, the Company has granted loans, advances in the nature of loans, provided Security and stood guarantee to other entities during the year, the details of which are as follows:

(Rs in Lakhs)

Particulars	Loans
Aggregate amount granted/ provided during the year
- Subsidiaries	657.58
- Associates	2,894.00
Balance outstanding at the balance sheet date in respect of above cases
- Subsidiaries	1,249.57
- Associates	25,825.38

b. In our opinion and according to information and explanations given to us, the terms and conditions of such loans given by the Company during the year, are not prima facie prejudicial to the interest of the company.

c. As there is no schedule of repayment of principal and further, interest is not charged in respect of loans granted by the Company during the year, we are unable to comment on the regularity of repayment of the same for the following loans:

Name of Entity	C in Lakhs
Gayatri Energy Ventures Private Limited	657.58
Gayatri Highways Limited	2,894.00

d. As there is no schedule of repayment of principal and payment of Interest in respect of the loans granted by the company during the year, reporting under clause 3(iii)(d) of the Order is not applicable to the Company.

e. As per the information and explanations given to us, the company has not granted/renewed loans to any party/ parties to settle the overdues of existing loans given to the same party / parties.

f. As per the information and explanations given to us, the company has granted certain loans without specifying any terms or period of repayment and the details of such loans are as follows:

Aggregate amount of loans/ advances in nature of loans	All Parties	Promoters	Related Parties
Agreement does not specify any terms or period of repayment	3,551.58		3,551.58
Percentage of loans to the total loans			100%

(iv) According to the information and explanations given to us and in our opinion, the company has complied with the provisions of sections of 185 and 186 of the Act, to the extent applicable, in respect of grant of loans, making investments and providing guarantees and securities.

(v) According to the information and explanations given to us, the Company has not accepted any deposits from public within the meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended) during the year. Accordingly, the provisions of clause 3(v) of the Order are not applicable to the Company.

(vi) We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended and prescribed by the Central Government under section 148(1) of the Companies Act, 2013, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

(vii) In respect of statutory dues

a. According to the information and explanations given to us, and based on our examination of records of the Company, the company has not been regular in depositing with the appropriate authorities the amounts deducted/ accrued in the books of accounts in respect of statutory dues including Goods and Services tax, provident fund, employees state insurance, income-tax, sales-tax, service tax, duty of custom, duty of excise, value added tax, cess and there have been serious delays in a large number of cases and no undisputed amounts payable in respect of provident fund, employees state insurance, income-tax, service tax, sales-tax, goods and service tax, duty of custom, duty of excise, value added tax, Cess and other material statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable, except as given below;

Name of the statute	Nature of Dues	Financial Year to which the amount relates	Amount involved (Rs in Lakhs)
Income Tax Act, 1961	TDS	2021-22	2,031.41
Income Tax Act, 1961	TDS	2020-21	155.83
Goods and Service Tax Act, 2017	GST	2021-22	2,182.87
Provident Fund	PF dues	2021-22	207.48
Professional Tax	PT dues	2021-22	0.31

b. According to the information and explanation given to us, there are no dues of Sales tax, Income Tax, Wealth Tax, Service Tax, Customs Duty, Goods and Service Tax, and Cess which have not been deposited as on 31st March, 2022 on account of any dispute, except the following:

S. No.	Name of the Statute	Name of the Tax Due	Forum where Dispute is pending	Amount C in Lakhs	Financial Years
1	Central Sales Tax Act, 1956 and Sales Tax Acts of Various States	Sales Tax/ Vat	Appeals pending before High Courts of respective states and Appellate Tribunals and other appropriate authorities.	1,403.60	2001-02, 2004-05 to 2009-10, 2011-12 and 2016-17
2	Central Excise Act, 1944	Service Tax	Appeals pending before various Authorities	1,760.09	2007-08 to 2011-12
3	Goods and Service Tax Act, 2017	GST Dues	Appeal filed before the Commissioner (Appeal), Guwahati and Jahnsi	769.47	2017- 18 2018- 19 2019- 20
4	Income Tax Act, 1961	Income Tax	Appeal Filed before Commissioner of Income Tax Appeals (CIT(Appeals))	3,985.62	2017-18

(viii) Based on our audit procedures and according to the information and explanations given to us, the Company has not surrendered or disclosed any transaction, previously unrecorded in the books of account, in the tax assessments under the Income Tax Act, 1961 as income during the year. Accordingly, the requirement to report on clause 3(viii) of the Order is not applicable to the Company.

(ix) Based on our audit procedures and according to the information and explanations given to us, we are of the opinion that the Company has defaulted in repayment of loans or borrowings to Banks Financial Institutions / Non-Banking Financial Corporations (NBFCs) during the year and as on the Balance Sheet date. In the absence of loan statements / information from the lenders, we are unable to comment on the date of default of various loans / financial facilities as there was adjustment of margin money deposits, repayments from TRA account against outstanding dues. Accordingly, the date of declaring the account as NPA / recalling of the loans is considered as default date for the purpose of reporting in this clause.

The details of the defaults / over dues which were not paid as at the balance sheet date are as follows:

Rs in Lakhs

Name of the Lender	NPA / Recall Date	Principal amount default	Interest amount default	Defaulted Days	Remarks, if any
i) Bank Dues for the Equipment Loans, Funded Interest Term Loans, Term Loans and Vehicle Loans:
Union Bank of India	30-06-2021	1,764.53	158.21	275
Bank of Baroda	02-09-2021	9,557.94	904.40	211
Bank of Maharashtra	30-06-2021	500.00	65.38	275
IDBI Bank Ltd	29-09-2021	4,936.10	395.64	184
Indian Overseas Bank	29-08-2021	7,227.71	807.79	215
Punjab National Bank	30-06-2021	8,239.15	1,370.89	275
iia) Bank Dues for Working Capital Loans and Short-Term Loans (COVID FITL)	i:
Union Bank of India	30-06-2021	14,793.60	1,287.67	275
Bank of Baroda	02-09-2021	37,475.31	3,703.83	211
Bank of Maharashtra	30-06-2021	5,049.40	576.09	275
Canara Bank	30-06-2021	30,527.87	5,937.63	275
IDBI Bank Ltd	29-09-2021	22000.00	1,065.44	184
Indian Overseas Bank	29-08-2021	7,500.00	182.08	215
Punjab National Bank	30-06-2021	9,350.00	1,552.00	275
Federal Bank	30-06-2021	1,499.03	218.96	275

iib) Working Capital facilities (On account of devolvement of BGs and LCs)

Bank Name	BG/LC devolved amount	Period of default #
Union Bank of India	9,207.65	42 to 328 days
Bank of Baroda	13,636.84	2 to 301 days
Canara Bank	34,310.99	4 to 358 days
IDBI Bank Ltd	6,015.10	3 to 269 days
Indian Overseas Bank	3,483.03	84 to 309 days
Punjab National Bank	13,160.91	1 to 270 days

iii) Financial Institutions/ NBFCs

Name of Lender	NPA Date (Considered as Default Date)	Principal amount default	Interest amount default	Defaulted Days	Remarks, if any
SREI Equipment Finance Ltd.	27-11-2021	6,563.65	727.47	125
Sundaram Finance Ltd.	09-08-2021	822.90	54.15	235
Tata Motors Finance Limited	23-08-2021	350.38	14.52	221
iv) Financial Institutions and NBFCs	Period of Default
NBFC/Financial Institution	0-90 days	91 - 180 days	181 - 270 days	271 - 365 days
Shriram Transport Finance - Principal	65.02	52.65	11.86	-
Hinduja Leyland Finance Limited - Principal	51.44	43.53	13.74	-
Shriram Transport Finance - Interest	3.36	4.70	1.68	-
Hinduja Leyland Finance Limited - Interest	1.49	2.93	3.19	-

v) Inter Corporate Loans	0-90 days	91 - 180 days	181 - 270 days	271 - 365 days
Kakinada Seaports Limited - Interest	39.45	36.30	36.30	8.68

b. According to the information and explanations given to us, we report that the Company has not been declared as a Wilful Defaulter by any bank or financial institution or government or any government authority.

c. According to the information and explanations given to us, the company has not obtained any term loans during the year under audit, accordingly, the provisions of Clause (ix)(c) of the Order are not applicable to the Company for the year under audit.

d. According to the information and explanations given to us, the procedures performed by us, and on an overall examination of the financial statements of the company, we report that no funds raised on a short-term basis have been used for long-term purposes by the company.

e. In our opinion and according to the information and explanations given to us and the procedures performed by us, we report that the Company has not taken any funds from any entity or person during the year on account of or to meet the obligations of its subsidiaries, associates or joint ventures.

f. According to the information and explanations given to us, we report that the company has not raised any loans during the year on the pledge of securities held in its subsidiaries, joint ventures or associate companies.

(x)a. According to the information and explanations given to us, The Company has not raised any money by way of an initial public offer or further public offer (including debt instruments) during the year.

Accordingly, the reporting under clause

3(x)(a) of the Order is not applicable to the Company.

b. During the year, the Company has not made any preferential allotment or private placement of shares or convertible debentures (fully, partially, or optionally convertible) during the year and hence reporting under clause (x)(b) of Order is not applicable.

(xi)a. During the course of our examination of the books and records of the company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the company or on the company by its officers or employees, noticed or reported during the year, nor we have been informed of any such case by the management.

b. During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, a report under Section 143(12) of the Act in Form ADT-4, as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 was not required to be filed with the Central Government. Accordingly, the reporting under clause 3(xi)(b) of the Order is not applicable to the Company.

c. During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, there are no whistle-blower complaints received by the company during the year, accordingly, the reporting under clause 3(xi)(c) of the Order is not applicable to the Company.

(xii) As the Company is not a Nidhi Company, provisions of clause 3(xii) of the Order are not applicable to the Company.

(xiii) According to the information and explanations given to us and based on examination of records of the Company, transactions with related parties are in compliance of Sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the Standalone Financial Statements as required by the applicable Accounting Standards.

(xiv) In respect of internal audit:

a. In our opinion and according to the information and explanation given to us, the company has an internal audit system commensurate with the size and nature of its business.

b. We have considered the internal audit reports of the company for the year under audit to the extent required for statutory audit, , in determining the nature, timing, and extent of our audit procedures.

(xv) According to the information and explanations given to us and based on examination of records of the Company, the Company has not entered into any non-cash transaction with directors or persons connected with them. Hence, Clause 3(xv) of the Order is not applicable for the current year under report.

(xvi)

a. In our opinion, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 and accordingly, the provisions of Clause 3(xvi)(a) of the Order are not applicable to the Company.

b. The Company has not conducted non-banking financial / housing finance activities during the year. Accordingly, the reporting under Clause 3(xvi)(b) of the Order is not applicable to the Company.

c. In our opinion, the Company is not a Core Investment Company (CIC) as defined under the Regulations by the Reserve Bank of India, and accordingly reporting under clause 3(xvi)(c) of the Order is not applicable.

d. Based on the information and explanations provided by the management of the Company, the group doesnt have any Core Investment Company (CIC), and accordingly reporting under clause 3(xvi)(d) of the Order is not applicable.

(xvii) The Company has incurred cash losses of 85,260.81 Lakhs during the current Financial Year and has not incurred cash loss in the immediately preceding financial year.

(xviii) There has been no resignation of the statutory auditors during the year and accordingly the reporting under Clause(xviii) of the Order is not applicable to the Company.

(xix) According to the information and explanations given to us and on the basis of the financial ratios (also refer Note: 35.33 to the standalone financial statements), ageing and expected dates of realisation of financial assets and payment of financial liabilities, other information accompanying the standalone financial statements, our knowledge of the Board of Directors and management plans and based on our examination of the evidence supporting the assumptions, as stated in para "Material Uncertainty Related to Going Concern" and "Note No. 35.26 of the standalone financial statements" we state that material uncertainty exists as on the date of the audit report indicating that the Company is not capable of meeting its liabilities existing at the date of the balance sheet as and when they fall due within a period of one year from the balance sheet date.

(xx) According to the information and explanations given to us, there are no unspent amounts that are required to be transferred to a fund specified in Schedule VII of the Companies Act (the Act), in compliance with second proviso to sub section 5 of section 135 of the Act. This matter has been disclosed in note 35.30 to the financial statements.

annexure - b to the auditors

report

(Referred to in paragraph 2(f) under "Report on Other Legal and Regulatory Requirements" section of our main audit report)

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 Company") as of 31st March, 2022 in conjunction with our audit of the Standalone Financial Statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Companys 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 Companys 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 Companys 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 applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. 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 was 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 auditors judgment, including the assessment of the risks of material misstatement of the 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 Companys internal financial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A Companys internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Standalone Financial Statements for external purposes in accordance with generally accepted accounting principles. A companys internal financial control over financial reporting includes those policies and procedures that (1) 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 Standalone Financial Statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companys assets that could have a material effect on the Standalone 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, to the best of our information and according to the explanations given to us read together with our observations under paragraph Emphasis of Matter of our main report, the Company has, in all material respects, an adequate internal financial controls system over financial reporting with reference to these Standalone Financial Statements and such internal financial controls over financial reporting were operating effectively as at 31st March, 2022, 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.

for M O S & Associates LLP	Oommen Mani
Chartered Accountants	Partner
Firm Registration No: 001975S/S200020	Membership Number: 234119
Place: Hyderabad	UDIN: 22234119AJWOIV2141
Date: 30th May, 2022