We have audited the accompanying standalone financial statements of Gillanders Arbuthnot and Company Limited
(“the Company”), which comprise the standalone balance sheet as at March 31, 2026, the standalone statement of
profit and loss (including other comprehensive income), the statement of cash flow and the statement of changes
in equity for the year ended on that date, and notes to the standalone financial statements, including a summary of
material accounting policies and other explanatory information in which is included the financial statements for the year
ended on that date audited by the branch auditor of the Company's branch (Engineering Division “MICCO”)(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, and based on the
consideration of reports of other auditor on separate financial statements and on the other financial information of the
branch, 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 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 March 31,2026, and its profit including other comprehensive income, 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 (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 made thereunder, and we have fulfilled our other ethical responsibilities
in accordance with these requirements and the ICAI's Code of Ethics. We believe that the audit evidence we have
obtained and other auditor in terms of their report referred to in “Other Matters” paragraph below is sufficient and
appropriate to provide a basis for our audit opinion on the standalone financial statements.
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 31,2026. 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 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 performed by us and by other auditors of branch not audited by us, as
reported by them in their audit reports furnished to us by the management, including those 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 Matter
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How our audit addressed the key audit matter
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1. Revenue Recognition
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Revenue recognition is significant audit risk within the
Company.
The revenue standard establishes a comprehensive
framework for determining whether, how much and
when revenue is recognized. This involves certain key
judgments relating to identification of distinct perfor¬
mance obligations, determination of transaction price of
identified performance obligation, the appropriateness
of the basis used to measure revenue recognized over
a period. Additionally, the standard mandates robust dis¬
closures in respect of revenue and periods over which
the remaining performance obligations will be satisfied
subsequent to the balance sheet date.
Risk exists that revenue is recognized without substan¬
tial transfer of control and is not in accordance with Ind
AS-115 “Revenue from Contracts with Customers”.
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Our audit consisted testing of the design and operating effective¬
ness of the internal controls and substantive testing as follows:
Ý Evaluated the design and tested the operative effectiveness of the in¬
ternal controls relating to revenue recognition, discounts and rebates.
Ý Tested sample of sale transactions to their respective cus¬
tomer contracts, underlying invoices and related documents.
Ý Performed analytical procedures over revenue and receiv¬
ables. Compared revenue with historical trends and where
appropriate, conducted further enquiries and testing.
Ý Obtained confirmations from customers on sample basis
to support existence assertion of trade receivables and as¬
sessed the relevant disclosures made in the standalone fi¬
nancial statements; to ensure revenue from contracts with
customers are in accordance with the requirements of rele¬
vant accounting standards.
Ý In case of construction contracts, reviewed the company's esti¬
mation process (including the approval of project budget, moni¬
toring of project costs and activities, and management's review
and customer's approval of project's stage of completion and
milestones achieved) used in determining the amounts of rev¬
enue and costs recognised in company's financial statements.
Our Conclusion:
Based on the audit procedures performed we did not identify
any material exceptions in the revenue recognition.
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2. Impairment of Assets
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Significant judgement is involved in assessing property,
plant and equipment for impairment. At the end of every
reporting period, the Company assesses whether there
is any indication that an asset or cash generating unit
(CGU) may be impaired. If any such indication exists,
the Company estimates the recoverable amount of the
asset or CGU.
The determination of recoverable amount, being the
higher of fair value less costs to sell and value-in-use
involves significant estimates, assumptions and judge¬
ments of the long-term financial projections.
Impairment of assets is a key audit matter considering
the significance of the carrying value, long term estima¬
tion and the significant judgements involved in the im¬
pairment assessment.
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Our audit procedures included considering the Company's ac¬
counting policies with respect to impairment in accordance with Ind
AS 36 “Impairment of Assets”.
We performed test of controls over impairment process through
inspection of evidence of performance of these controls. We per¬
formed the following tests of details:
Ý We obtained the management's impairment assessment.
Ý We evaluated the key assumptions including projected cash
flows. In determining future cash flows, management is re¬
quired to make assumptions relating to future profitability,
including revenue growth and operating margins, and the
determination of an appropriate discount rate, all of which
are subject to management override as the outcome of the
impairment assessments could vary significantly if different
judgements are applied.
We have tested the workings of management for ascertain¬
ing fair value and costs of disposal of CGU for ascertaining
recoverable amount.
Our Conclusion:
Based on the audit procedures performed we did not identify
any material exceptions with respect to the impairment as¬
sessment of assets.
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3. Expected Credit Loss
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The Company assesses at each date of balance sheet
whether a financial asset or a group of financial assets
is impaired. Ind AS - 109 requires expected credit loss¬
es to be measured through a loss allowance. The com¬
pany recognizes impairment loss for trade receivables
that do not constitute a financing transaction using ex¬
pected credit loss model, which involves use of a provi¬
sion matrix constructed on the basis of historical credit
loss experience. For all other financial assets, expected
credit losses are measured at an amount equal to the
12 month expected credit losses or at an amount equal
to the life time expected credit losses if the credit risk
on the financial asset has increased significantly since
initial recognition.
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Our Audit procedure on evaluation of Expected credit loss model
include:
Ý Obtained an understanding of the Company's process for
estimating the ECL of various eligible assets included in the
Standalone Financial Statements.
Ý Evaluated the detailed analysis performed by management
on revenue by selecting samples for the existing contracts
with customers.
Ý Evaluated the calculation of historical loss rate on the basis of
historical trends, industry practices, business environment in
which company operates & forward-looking information.
Our Conclusion:
Based on the audit procedures performed we did not identify any
material exceptions in measurement of Expected Credit Loss.
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Information Other than the Standalone Financial Statements and Auditor’s Report Thereon
The Company's Management and Board of Directors are responsible for the presentation of 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 standalone financial statements
or our knowledge obtained during the course of our 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.
Management’s and Board of Directors Responsibility for the Standalone Financial Statements
The Company's Management and Board of Directors are 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, the 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 Board of Directors are also responsible for overseeing the Company's financial reporting process.
Auditor’s Responsibility 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 controls 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 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 and Board of Directors.
• 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
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 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.
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 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 for the financial year ended March 31,2026 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
The accompanying standalone financial statements includes the audited financial statements of the Company's branch,
whose audited financial statements reflect total assets of Rs. 13,793.95 lakhs as at 31st March, 2026, total revenues of
Rs. 10,250.48 lakhs and total net Profit of 723.50 lakhs, total comprehensive income of Rs. 750.65 Lakhs and net cash
outflow of Rs. 1.14 lakhs for the year ended on 31st March 2026. These financial statements have been audited by the
other auditor whose reports have been furnished to us by the management. Our opinion on the standalone financial
statements, in so far as it relates to the amounts and disclosures included in respect of branch is based solely on the
report of such other auditor
Our opinion on the standalone financial statements is not modified in respect of the above matter and with respect to
our reliance on the work done and the reports of such other auditor
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 Section 143(11) of the Act, we give in the Annexure “A” a statement on the matters specified in
paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, based on our audit and on the consideration of reports of the other auditor
on separate financial statements and the other financial information of the branch, as noted in the ‘other matter'
paragraph we report, to the extent applicable, that:
a) We / the branch auditor whose report we have relied upon, 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(j)(vi) below on reporting
under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014
c) The report on the financial statements of branch of the Company audited under section 143(8) of the Act by
branch auditors has been sent to us and has been properly dealt by us in preparing this report.
d) The standalone balance sheet, the standalone statement of profit and loss including other comprehensive
income, the standalone statement of cash flow and standalone statement of changes in equity dealt with by this
Report are in agreement with the books of account.
e) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards
specified under Section 133 of the Act read with the relevant Rules thereon.
f) On the basis of the written representations received from the directors, taken on record by the Board of
Directors, none of the directors is disqualified as on March 31,2026 from being appointed as a director in terms
of Section 164 (2) of the Act.
g) The modifications relating to the maintenance of accounts and other matters connected therewith are as stated
in the paragraph 2(b) above on reporting under Section 143(3)(b) of the Act and paragraph 2(j)(vi) below on
reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.
h) 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 “B” to
this report. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the
Company's internal financial controls with reference to these standalone financial statements.
i) With respect to the other matters to be included in the Auditor's 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 remuneration
paid/provided by the Company to its directors during the year is in accordance with the provisions of section
197 read with Schedule - V to the Act.
j) 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 and on the consideration of reports of the other auditor on separate
financial statements and the other financial information of the branch, as noted in the ‘other matter':
i. The Company has disclosed the impact of pending litigations as at March 31, 2026 on its financial
position in its standalone financial statements - Refer Note No. 38 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. a. The management has represented that, to the best of its knowledge and belief as disclosed in the
notes to the Standalone Financial Statement, during the year 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
behalf of the Company (Ultimate beneficiaries) or provide any guarantee, security or the like on behalf
of the company (Ultimate beneficiaries). Refer note 54(v) to the standalone financial statements.
b. The management has represented, that, to the best of its knowledge and belief as disclosed in the notes
to the Standalone Financial Statement, during the year 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 company
(Ultimate Beneficiaries). Refer note 54(vi) to the standalone financial statements.
c. Based on such audit procedures that we have considered reasonable and appropriate in the
circumstances; nothing has come to our attention that causes us to believe that the representations
under sub-clause (i) and (ii) of Rule 11(e) as provided under clause (iv) (a) and (iv) (b) above, contain
any material mis-statement.
v. The Board of Directors of the Company have proposed payment of dividend on the 7.75% Cumulative
Redeemable Preference Shares of the company for financial years 2018-19 and 2019-20 which is subject
to approval of the Members of the Company at the ensuing Annual General Meeting. The amount of
dividend proposed is in accordance with Section 123 of the Act, as applicable.
vi. Based on our examination which included test checks, the Company has used accounting software's for
maintaining its books of account, which have a feature of recording audit trail (edit log) facility and the
same has operated throughout the year for all relevant transactions recorded in the respective software
except for recording of audit trail (edit log) facility at the database level. Further, during the course of
our audit, we did not come across any instance of audit trail feature being tampered with. The audit trail
has been preserved by the Company as per the statutory requirements for record retention except at
database level as audit trail feature is not enabled at database level.
For J K V S & CO
Chartered Accountants
Firm‘s Registration No. 318086E
Ajay Kumar
Partner
Place: Kolkata Membership No. 068756
Date: 11th May, 2026 UDIN: 26068756QGMVSO3854
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