Mar 31, 2023
Ashoka Buildcon Limited
Report on the Audit of the Standalone Financial Statements
Opinion
We have audited the accompanying standalone financial statements of Ashoka Buildcon Limited (âthe Companyâ), which comprise the Balance sheet as at March 31 2023, 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 significant accounting policies and other explanatory information.
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 (âthe Actâ) 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, 2023, 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) ofthe Act. Our responsibilities under those Standards are further described in the âAuditorâs Responsibilities for the Audit of the Standalone Financial Statementsâ section of our report. We are independent of the Company in accordance with the âCode of Ethicsâ 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 52 to the accompanying standalone financial statements, regarding an ongoing investigation by a law enforcement agency. Pending outcome of investigation and the Companyâs review of the matter, 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, 2023. 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 âAuditorâs Responsibilities for the Audit of the Standalone Financial Statementsâ 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.
Key audit matters |
How our audit addressed the key audit matter |
(a) Revenue recognition for long term construction contracts (as described in Note 01 (B) (22) and 31 of the standalone financial statements) |
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The Companyâs significant portion of business is undertaken through long term construction contracts. Revenue from these contracts is recognized over the period of time in accordance with the requirements of Ind AS 115, Revenue from Contracts with Customers. Due to the nature of the contracts, revenue is recognised over a period of time using percentage of completion method (input method) which is determined based on proportion of contract costs incurred to date compared to estimated total contract costs, which involves significant judgments, identification of contractual obligations and the Companyâs rights to receive payments for performance completed till date, changes in scope and consequential revised contract price and recognition of the liability for loss making contracts. Accordingly, the same has been considered as a key audit matter. |
⢠Our audit procedures included, amongst others, the following: ⢠We read the Company''s revenue recognition accounting policies and assessed compliance with the policies in terms of Ind AS 115 ⢠We obtained an understanding of the process, evaluated the design, and tested the operating effectiveness of the controls over revenue recognition with specific focus on determination of progress of completion, recording of costs incurred and estimation of costs to complete the remaining contract obligations through inspection of evidence of performance of these controls; ⢠We performed tests of details, on a sample basis, and read the underlying customer contracts for terms and conditions, performed review of costs incurred with estimated costs to identify significant variations and assess whether those variations have been considered in estimating the remaining costs to complete and consequential determination of stage of completion, which formed the basis of revenue recognition under the input method; ⢠We assessed the managementâs evaluation process to recognize revenue over a period of time, status of completion for projects and total cost estimates; |
Key audit matters |
How our audit addressed the key audit matter |
⢠On sample basis, we evaluated contracts with including contracts with low or negative margins, contracts with significant changes in planned cost estimates, contacts with significant contract assets and contract liabilities and significant overdue net receivable positions for contracts and tested assessed these exceptions with its correlation to with the underlying contracts and relevant documents for the year indicating these exceptions including those on account of arising out of effects of the pandemic on project execution and project margins; ⢠We assessed the presentation and disclosure requirements in compliance with Ind AS 115. |
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Imnairment of Companyâs Interest in subsidiaries and ioint ventures (as described in Note 01 (B) (22) and Note 04 of the |
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Ind AS financial statements) |
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As per requirement of Ind AS 36 âImpairment of assetsâ, the management reviews at each reporting period whether there are any indicators of impairment of the investments in subsidiaries and where impairment indicators exist, the management estimates the recoverable amounts of the investments, being higher of fair value less costs of disposal and value in use. The value in use of the underlying businesses is determined based on the discounted cash flow projections. Significant judgements are required to determine the key assumptions used in the discounted cash flow models, such as revenue growth, major maintenance expenditure, discount rate, traffic growth and toll rates based on managementâs view of future business prospects. Certain investments and loans are classified as held for sale in accordance with Ind AS 105 "Non-current Assets Held for Sale and Discontinued Operations" and accordingly the investments and loans are measured at lower of carrying amount and fair value less costs to sell. Further, based on the impairment assessment performed by the Company, during the current year the Company has recorded reversal of impairment amounting to INR 34,915.14 lakhs (Refer Note 60 to the standalone financial statements). Accordingly, the impairment of the Companyâs interest in subsidiaries and joint ventures, was determined to be a key audit matter in our audit of the standalone Ind AS financial statements. |
Our audit procedures included, amongst others, the following: ⢠We assessed the Companyâs accounting policies with respect to impairment in accordance with Ind AS 36 âImpairment of assetsâ; ⢠We obtained an understanding of the process, evaluated the design, and tested the operating effectiveness of the controls over the management assessment of impairment indicators of interest in subsidiaries and joint ventures and where impairment indicators exists, the control over the management estimate for the recoverability of these investments. ⢠We performed following test of details; ⢠We obtained managementâs impairment assessment; ⢠We assessed the assumptions around the key drivers of the cash flow forecasts including major maintenance expenditure, traffic growth, toll rates, discount rates and expected revenue growth rates based on managementâs view of future business prospects including any possible impact arising out of the pandemic on these estimates; ⢠We discussed potential changes in key drivers as compared to previous year / actual performance with management in order to evaluate whether the inputs and assumptions used in the cash flow forecasts were suitable; ⢠We involved valuation specialist to assess the valuation methodology including the key assumptions used in the cash flow forecasts for investments; ⢠We obtained and analysed sensitivity analysis on the assumptions used by the management. ⢠In respect of investments which are classified as asset held for sale, we have verified the computation of fair value less costs of sell with the underlying documentation and assessed the key assumptions considered by the management. ⢠We have read and assessed the disclosures in the financial statements is in accordance with Ind AS 36 âImpairment of assetsâ made in the standalone financial statements. |
The Companyâs 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 auditorâs 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 for the Standalone Financial Statements
The Companyâs 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 Companyâs 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 Companyâs financial reporting process.
Auditorâs 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 auditorâs 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 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 managementâs 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 Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs 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 auditorâs 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 financial statements, including the disclosures, and whether the 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, 2023 and are therefore the key audit matters. We describe these matters in our auditorâs 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 (Auditorâs Report) Order, 2020 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure 1â 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 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 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, 2023 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2023 from being appointed as a director in terms of Section 164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls with reference to these standalone financial statements and the operating effectiveness of such controls, refer to our separate Report in âAnnexure 2â to this report;
(g) In our opinion, the managerial remuneration for the year ended March 31, 2023 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;
(h) With respect to the other matters to be included in the Auditorâs 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 51 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, other than as disclosed in the Note 58 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 (âIntermediariesâ), 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 (âUltimate Beneficiariesâ) 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, no funds have been received by the Company from any persons or entities, including foreign entities (âFunding Partiesâ), 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 (âUltimate Beneficiariesâ) 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 subclause (a) and (b) contain any material misstatement.
v. No dividend has been declared or paid during the year by the Company.
vi. As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable for the Company only w.e.f. April 1, 2023, reporting under this clause is not applicable.
For S R B C & CO LLP Chartered Accountants ICAI Firm Registration Number: 324982E/E300003
sd/-
per Suresh Yadav Partner
Membership Number: 119878 UDIN: 23119878BGTCQS8547
Place of Signature: Nashik Date: May 24, 2023
Mar 31, 2018
Independent Auditorâs Report to The Members of Ashoka Buildcon Limited
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Ashoka Buildcon Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, 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 a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Standalone Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS 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 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 control that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit of the standalone Ind AS financial statements in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India, as specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2018, its profit including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Other Matter
The comparative financial information of the Company for the year ended March 31, 2017 prepared in accordance with Ind AS, included in these standalone Ind AS financial statements, prior to giving effect to the adjustment described in Note 50 to these standalone IND AS financial statements, have been audited by the predecessor auditor who had audited the standalone financial statements for the relevant period. The report of the predecessor auditor on the comparative financial information dated May 30, 2017 expressed an unmodified opinion.
We have audited the adjustments to reflect the effects of the matters described in Note 50 to restate the financial information as at April 1, 2016 and as at and for the year ended March 31, 2017. In our opinion, such adjustments are appropriate and have been properly applied. We further state that we were not engaged to audit, review or apply any procedures to the standalone financial information of the Company either as at April 1, 2016 or as at and for the year ended March 31, 2017 other than with respect to the aforesaid adjustments and, accordingly, we do not express an opinion or review conclusion or any other form of assurance on the financial information as at April 1, 2016 and for the year ended March 31, 2017 as a whole.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs report) Order, 2016 (âthe Orderâ) 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 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 purpose 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, 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 Ind AS 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 written representations received from the directors as on March 31, 2018, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018, 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 with reference to these standalone Ind AS financial statements and the operating effectiveness of such controls, refer to our separate Report in âAnnexure 2â to this report;
(g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements
- Refer Note 48 to the standalone Ind AS financial statements;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts
- Refer Note 47 to the standalone Ind AS financial statements;
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
Annexure 1 - Statement on matters specified in paragraphs 3 and 4 of the Companies (Auditorâs report) Order, 2016
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) All fixed assets have not been physically verified by the management during the year but there is a regular programme of verification which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. No material discrepancies were noticed on such verification.
(c) According to the information and explanations given by the management, the title deeds of immovable properties included in property, plant and equipment are held in the name of the company except for title deed in case of two buildings (Gross Block of Rs. 151.64 Lakh, Net Block Rs. 143.77 lakh), for which transfer deed is yet to be executed in the name of the Company.
(ii) (a) The management has conducted physical verification of inventory at reasonable intervals during the year and no material discrepancies were noticed on such physical verification.
(iii) (a) The Company has granted loans to sixteen companies covered in the register maintained under section 189 of the Companies Act, 2013. In our opinion and according to the information and explanations given to us, the terms and conditions of the grant of such loans are not prejudicial to the companyâs interest.
(b) The Company has granted loans to sixteen companies covered in the register maintained under section 189 of the Companies Act, 2013. The schedule of repayment of principal and payment of interest has been stipulated for the loans granted and the repayment/receipts are regular.
(c) There are no amounts of loan granted to companies, firms or other parties listed in the register maintained under section 189 of the Companies Act, 2013 which are overdue for more than ninety days.
(iv) In our opinion and according to the information and explanations given to us, there are no loans, investments, guarantees, and securities given in respect of which provisions of section 185 and 186 of the Companies Act 2013 are applicable and hence not commented upon.
(v) The Company has not accepted any deposits within the meaning of Section 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013, related to road and other infrastructure projects, and are of the opinion that prima facie, the specified accounts and records have been made and maintained. We have not, however, made a detailed examination of the same.
(vii) (a) Undisputed statutory dues including provident fund, employeesâ state insurance, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and other material Statutory dues have been regularly deposited with the appropriate authorities though there has been a slight delay in a few cases.
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employeesâ state insurance, income-tax, service tax, sales-tax, duty of custom, duty of excise, value added tax, cess and other statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable.
(b) According to the records of the Company, the dues outstanding of income-tax, sales-tax, service tax, duty of custom, duty of excise, value added tax and cess on account of any dispute, are as follows:
Name of Statute |
Nature of dues |
Amount (Rs. in lakhs) |
Period to which the amount relates |
Forum where dispute is pending |
Customs Act, 1962 |
Custom duty |
83.34 |
2000-01 |
CESTAT, Mumbai |
Finance Act, 1995 |
Service Tax |
71.06 |
2005-06 |
Supreme Court of India |
State and Central Sales Tax Acts |
Tax, Interest and Penalty |
2,252.72 |
2006-07 |
Joint Commissioner (Appeal), Maharashtra |
20.54 |
2008-09 |
Deputy Commissioner, Chhattisgarh |
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24.80 |
2009-10 |
Add. Commissioner (Appeals), Chhattisgarh |
0.32 |
2007-08 |
Asst. Commissioner, Rajasthan |
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1,509.34 |
2012-13 and 2013-14 |
Senior Joint Commissioner, West Bengal |
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37.14 |
2014-15 |
Commercial Taxes Tribunal, Bihar |
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103.70 |
2013-14 |
Appleate Deputy Commissioner (Appeals), Chennai |
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1,709.21 |
2014-15 |
West Bengal Taxation |
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1,726.57 |
2014-15 and 2015-16 |
High Court, Madras |
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Income Tax Act, 1961 |
Tax, Interest and Penalty |
75.61 |
2000-01 and 2002-03 |
Bombay High Court |
688.31 |
2002-03, 2003-04 and 2010-11 |
Income Tax Appellate Tribunal |
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2,431.32 |
2010-11 and 2012-13 |
Commissioner of Income Tax (Appeals) |
(viii) In our opinion and according to the information and explanations given by the management, the Company has not defaulted in repayment of loans or borrowing to a financial institution and bank. The Company has not taken any loan or borrowing from Government or by way of issue of debentures.
(ix) I n our opinion and according to the information and explanations given by the management, the Company has utilized the monies raised by way of term loans for the purposes for which they were raised. The Company has not raised any money by way of initial public offer / further public offer /debt instruments during the year.
(x) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and according to the information and explanations given by the management, we report that no fraud by the company or no fraud on the company by the officers and employees of the Company has been noticed or reported during the year.
(xi) According to the information and explanations given by the management, the managerial remuneration has been paid / provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) In our opinion, the Company is not a nidhi company. Therefore, the provisions of clause 3(xii) of the order are not applicable to the Company.
(xiii) According to the information and explanations given by the management, transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 where applicable and the details have been disclosed in the notes to the financial statements, as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us and on an overall examination of the balance sheet, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence, reporting requirements under clause 3(xiv) are not applicable to the company and, not commented upon.
(xv) According to the information and explanations given by the management, the Company has not entered into any non-cash transactions with directors or persons connected with him as referred to in section 192 of Companies Act, 2013.
(xvi) According to information and explanation given to us, the provisions of section 45-IA of the Reserve Bank of India Act, 1934 are not applicable to the Company.
ANNEXURE 2 - TO THE INDEPENDENT AUDITORâS REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTS
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Ashoka Buildcon Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs 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. 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 the Companyâs 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.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting with reference to these standalone financial statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing as specified under section 143(10) of the Companies Act, 2013, to the extent 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 with reference to these standalone financial statements 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 over financial reporting with reference to these standalone financial statements and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting with reference to these standalone financial statements, 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 auditorâs judgement, 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 internal financial controls over financial reporting with reference to these standalone financial statements.
Meaning of Internal Financial Controls Over Financial Reporting With Reference to these Financial Statements A companyâs internal financial control over financial reporting with reference to these standalone financial statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting with reference to these standalone financial statements 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 financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting With Reference to these Standalone Financial Statements
Because of the inherent limitations of internal financial controls over financial reporting with reference to these standalone financial statements, 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 with reference to these standalone financial statements to future periods are subject to the risk that the internal financial control over financial reporting with reference to these standalone financial statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, adequate internal financial controls over financial reporting with reference to these standalone financial statements and such internal financial controls over financial reporting with reference to these standalone financial statements were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For S R B C & CO LLP
Chartered Accountants ICAI
Firm Registration Number: 324982E/E300003
per Anil Jobanputra
Partner
Membership Number: 110759
Place of Signature: Mumbai
Date: May 29, 2018
Mar 31, 2017
Independent Auditorâs Report to the Members of Ashoka Buildcon Limited
1. Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Ashoka Buildcon Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2017, the Statement of Profit and Loss (including Other Comprehensive Income), the Cash Flow Statement and Statement of Changes in Equity for the year then ended, and a summary of significant accounting policies and other explanatory information.
2. Managementâs Responsibility for the Standalone Ind AS Financial Statements
2.1 The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone Ind AS 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 Indian Accounting Standards (Ind AS) specified under section 133 of the Act, read with Companies (Indian Accounting Standard) Rules 2015, as amended.
2.2 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 Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
3. Auditorâs Responsibility
3.1 Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
3.2 We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
3.3 We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
3.4 An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the standalone Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
3.5 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
4. Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS financial statements give the information required by the Act, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs (Financial position) of the Company as at 31st March, 2017, its profit (Financial performance),its cash flows and changes in equity for the year ended on that date.
5. Report on Other Legal and Regulatory Requirements
(i) As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, a statement on the matters specified in the paragraph 3 and 4 of the order is given in âAnnexure Aâ.
(ii) As required by sub- section (3) of section 143 of the Act, we report that :
(a) We have sought and obtained all the information and explanations which to the best ofour 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 Cash Flow Statement and Statement of Change in Equity dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting Standards specified under section 133 of the Act, read with Companies (Indian Accounting Standard) Rules 2015, as amended;
(e) On the basis of written representations received from the Directors and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2017, 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 âAnnexure Bâ; and
(iii) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended by the Companies (Audit and Auditors) Rules, 2017, in our opinion and to the best of our information and according to the explanations given to us:
(a) The Company has disclosed the impact of pending litigations in its standalone Ind AS financial statements. Refer note 47(i)(c) of standalone Ind AS financial statements.
(b) Based on the information and explanations provided to us, the company has made the required provisions towards material foreseeable losses, in respect of long term contracts. The Company did not have any derivative contracts.
(c) The company was not required to deposit or pay any dues in respect of the Investor Education and Protection Fund during the year.
(d) Disclosures in respect of âBank Depositâ made by the Company, as a part of Note no. 50 of its standalone Ind AS financial statements, as to holding as well as dealing in Specified Bank Notes (SBNs) during the period from November 8, 2016 to December 30, 2016 were in accordance with books of accounts maintained by the Company. Disclosures of âPermitted Receipts & Paymentsâ could not be verified for want of adequate evidence necessary to support the breakup of currency notes into âSBNâ and âOther denominationâ.
i) a) The Company is maintaining proper records showing full particulars, including quantitative details and situation of all fixed assets.
b) Pursuant to the companyâs programme of verifying fixed assets in a phased manner over a period of 3 years, verification of certain items of Property, Plant and Equipment were conducted during the year. In our opinion, such programme of verification is reasonable. We are informed that no material discrepancies were noticed on such verification.
c) According to the information and explanations given to us title deeds of immovable properties, classified as fixed assets, are in the name of the company. except for title deed in case of one Building (Gross block '' 147.24 lakh, Net block ''133.26 lakh), for which transfer deed is yet to be executed in the name of the Company.
ii) Inventories have been physically verified by the Management at regular intervals. In our opinion, the frequency of such verification is reasonable. We are informed that discrepancies noticed on such verification were not material as compared to the book records. The discrepancies noticed on such verification have been properly dealt with in the books of account.
iii) a) Based on the information and explanations furnished to us, we are of the opinion that the terms and conditions of unsecured loans granted to ten parties covered in the register maintained u/s 189 of the Companies Act, 2013 are prima facie not prejudicial to the interest of the company.
b) In case of the above loan, the schedule of principal repayment and interest payment (wherever applicable i.e. eight parties) has been stipulated. Since, the principal and interest are not due for repayment/payment, we are unable to comment whether receipt of principals and interest is regular.
c) Since the principal and interest are not due for repayment, we are unable to comment on this clause.
iv) According to the information and explanations given to us and on the basis of representations of the management which we have relied upon, the loans given by the company are not covered by Section 185 or Section 186 of The Companies Act, 2013 and hence, this clause is not applicable.
v) According to the information and explanations given to us, the Company has not accepted deposits from the public in terms of provisions of sections 73 to 76 of the Companies Act, 2013.
vi) According to the information and explanations given to us, pursuant to the rules prescribed by Central Government for the maintenance of cost records under section 148 (1) of the Companies Act, 2013, we have broadly reviewed the cost records and are of the opinion that prima facie, the prescribed records have been made and maintained. However, we have not carried out a detailed examination of the same.
vii) a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company has been generally regular in depositing undisputed statutory dues including investor education and protection fund, provident fund, employees state insurance, income tax, Value Added Tax (VAT), sales tax, service tax, Professional tax, custom duty, excise duty, value added tax, cess and other material statutory dues, as applicable, with the appropriate authorities, except that there have been certain delays in payments of VAT, Professional tax and Service tax in certain cases. There are no statutory dues outstanding as of March 31, 2017 for a period of more than six months. b) As at the year-end, according to the records of the Company and information and explanations given to us, disputed statutory dues that have not been deposited on account of appeal matters pending before the appropriate authorities are as under:-
Financial Year |
Amount (Rs, in lakh) |
Particulars |
Authority |
2000-01 |
93.34 |
Customs |
Asst. Commissioner of Customs, Mumbai |
2005-06 2006-07 |
71.06 |
Service Tax |
Supreme court of India |
2006-07 2009-10 |
2,252.72 |
Sales Tax |
Joint Commissioner (Appeal), Maharashtra |
2008-09 |
20.54 |
Sales Tax |
Deputy Commissioner, Chattisgarh |
2009-10 |
24.80 |
Sales Tax |
Add. Commissioner, (Appeals) Chattisgarh |
2008-09 |
1.93 |
Sales Tax |
Asst. Commissioner, Gujarat |
2007-08 |
0.32 |
Sales Tax |
Asst. Commissioner, Rajasthan |
2011-12 |
1.57 |
Sales Tax |
Joint Commissioner, Karnataka |
2012-13 |
1,204.12 |
Sales Tax |
Senior Joint Commissioner, West Bengal |
2013-14 |
308.67 |
Sales Tax |
Senior Joint Commissioner, West Bengal |
2014-15 |
57.40 |
Sales Tax |
Asst. Commissioner Appeal, Bihar |
2013-14 |
108.37 |
Sales Tax |
Asst. Commissioner, Tamilnadu |
Financial Year |
Amount (Rs, in lakh) |
Particulars |
Authority |
2014-15 |
1,465.84 |
Sales Tax |
Asst. Commissioner, Tamilnadu |
2008-09 |
11.48 |
Income Tax |
ACIT, CC-1, Nashik |
2009-10 |
0.24 |
Income Tax |
ACIT, CC-1, Nashik |
2010-11 |
82.67 |
Income Tax |
ACIT, CC-1, Nashik |
2011-12 |
20.99 |
Income Tax |
ACIT, CC-1, Nashik |
2012-13 |
2,914.66 |
Income Tax |
ACIT, CC-1, Nashik |
Total |
8,640.72 |
viii)According to the records of the Company examined by us and the information and explanations given to us, the Company has not defaulted in repayment of loans or borrowing to banks financial institutions and debenture holders. The Company has not borrowed any funds from Government.
ix) In our opinion and according to the information and explanations given by the management, the Company has utilized the monies raised by term loans for the purposes for which they were raised. The Company has not raised any money by way of initial public offer/further public offer (including debt instruments) during the year. Terms and conditions of utilisation of funds raised through loan from related party have not been mentioned in respective document hence, we are unable to comment on this clause.
x) According to the information and explanations given to us and on the basis of representation of the management which we have relied upon, no fraud by the Company or on the company by its officers or employees has been noticed or
reported during the year.
xi) According to the information and explanations given to us, managerial remuneration has been paid in accordance with the provisions of section 197 read with Schedule V to the Companies Act, 2013.
xii) Since the company is not a nidhi company, this clause is not applicable.
xiii)According to the information and explanations given to us, all transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013 as applicable and the details have been disclosed in the Financial Statements as required by the applicable accounting standards.
(xiv)The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review.
(xv)According to the information and explanations given to us, the company has not entered into any non cash transactions with directors or persons connected with him.
(xvi)The company is not required to be registered under section 45-IAofthe Reserve Bank oflndiaAct, 1934.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of Ashoka Buildcon Limited (âthe Companyâ) as of 31st March, 2017 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs 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 (the âGuidance Noteâ) issued by the Institute of Chartered Accountants of India (the âICAIâ). 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 companyâs 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.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Companyâs 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 âGuidance Noteâ) issued by ICAI 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. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting were established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs 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 Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs 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 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 companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2017, 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 P Chitale & Co.
Chartered Accountants
Firm Regn No. 101851W
Sd/-
MurtuzaVajihi
Partner
ICAI M No. 112555
Place : Mumbai.
Date : May 30, 2017
Mar 31, 2016
We have audited the accompanying financial statements of Ashoka
Buildcon Limited ("the Company"), which comprise the Balance Sheet as
at 31st March 2016, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
2. Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. 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 financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
3. Auditor''s Responsibility
3.1 Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
3.2 We have taken into account the provisions of the Act, the
accounting and auditing standards and matters which are required to be
included in the audit report under the provisions of the Act and the
Rules made thereunder.
3.3 We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company''s
preparation of the financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by Company''s Directors, as well as evaluating the
overall presentation of the financial statements.
3.4 We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
financial statements.
4. Opinion
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 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 31st March, 2016, and its profit and its cash flows for the year
ended on that date.
5. Emphasis of Matter
We invite attention to Note 27(XIII) of the financial results regarding
the provision made against / write offs of the exposure of the Company
in one of its associates, PNG Tollways Limited due to the termination
of the service concession agreement with NHAI by the associate company.
Our opinion is not modified in respect of these matters.
6. Report on Other Legal and Regulatory Requirements
(i) As required by the Companies (Auditor''s Report) Order, 2016 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, a statement on the matters
specified in the paragraph 3 and 4 of the order is given in Annexure A.
(ii) As required by sub- section (3) of section 143 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 and the Cash
Flow Statement 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 Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of written representations received from the Directors
and taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2016, 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"; and
(iii) With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit And Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations in its
financial statements. - Refer note 27(XI) of financial statements.;
(ii) Based on the information and explanations provided to us, the
company has made the required provisions towards material foreseeable
losses, in respect of long term contracts.
(iii) The company was not required to deposit or pay any dues in
respect of the Investor Education and Protection Fund during the year.
i) a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of all fixed
assets.
b) Pursuant to the company''s programme of verifying fixed assets in a
phased manner, physical verification of major fixed assets was
conducted during the year. In our opinion, such programme of
verification is reasonable.
- We are informed that no material discrepancies were noticed on such
verification.
c) According to the information and explanations given to us title
deeds of immovable properties, classified as fixed assets, are in the
name of the company, except for title deed in case of one freehold land
(gross block Rs.200 lakhs, net block Rs.200 lakhs), for which transfer
deed is yet to be executed in the name of the Company
ii) Inventories have been physically verified by the Management at
regular intervals. In our opinion, the frequency of such verification
is reasonable. We are informed that discrepancies noticed on such
verification were not material as compared to the book records. The
discrepancies noticed on such verification have been properly dealt
with in the books of account.
iii) a) Based on the information and explanations furnished to us, we
are of the opinion that the terms and conditions of unsecured loans
granted to five parties covered in the register maintained u/s 189 of
the Companies Act, 2013 are prima facie not prejudicial to the interest
of the company.
b) In case of the above loan, the schedule of principal repayment and
interest payment has been stipulated.
c) Since the principal and interest are not due for payment, we are
unable to comment on this clause.
iv) According to the information and explanations given to us and on
the basis of representations of the management which we have relied
upon, the loans given by the company are not covered by Section 185 or
Section 186 of The Companies Act, 2013 and hence, this clause is not
applicable.
v) According to the information and explanations given to us, the
Company has not accepted deposits from the public in terms of
provisions of sections 73 to 76 of the Companies Act, 2013.
vi) According to the information and explanations given to us, pursuant
to the rules prescribed by the Central Government for the maintenance
of cost records under section 148(1) of the Companies Act, 2013, we
have broadly reviewed the cost records and are of the opinion that
prima facie, the prescribed records have been made and maintained by
the Company.
vii) a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
has been generally regular in depositing undisputed statutory dues
including investor education and protection fund, provident fund,
employees state insurance, income tax, Value Added Tax (VAT), sales
tax,, custom duty, excise duty, value added tax, cess and other
material statutory dues, as applicable, with the appropriate
authorities, except that there have been certain delays in payments in
case of Income Tax Deducted at Source, VAT, sales tax, works contract
tax and profession tax in certain cases. There are no statutory dues
that are outstanding as of March 31, 2016 for a period of more than six
months.
b) As at the year-end, according to the records of the Company and
information and explanations given to us, the disputed statutory dues
that have not been deposited on account of appeal matters pending
before the appropriate authorities are as under:-
Financial Year Amount Particulars Authority
(Rs.in
lakhs)
2000-01 93.34 Customs Asst. Commissioner of
Customs, Mumbai
2006-07 to 404.57 Labour cess Asst. Commissioner,
2009-10 Madhya Pradesh
2006-07 to 44.11 Labour cess Asst. Commissioner,
2010-11 Madhya Pradesh
2006-07 to 587.00 Labour cess Asst. Commissioner,
2010-11 Chattisgarh
2006-07,2009- 2,312.31 Sales Tax Joint Commissioner
10 and 2011- (Appeal), Maharashtra
2012
2008-09 & 40.81 Sales Tax Deputy Commissioner
2009-10 (Appeal), Chhattisgarh
2008-09 1.93 Sales Tax Asst. Commissioner, Gujarat
2007-2008 0.32 Sales Tax Asst. Commissioner,
Rajasthan
2011-2012 1.57 Sales Tax Asst. Commissioner,
Karnataka
2012-2013 1,204.12 Sales Tax Asst. Commissioner,
West Bengal
2005-06 to 14.56 Entry Tax Asst. Commissioner,
2008-09 Rajasthan
2013-16 31.19 Entry Tax High Court -Writ petition,
Bengal
2008-09 11.48 Income Tax ACIT, CC-1,Nashik
2009-10 0.24 Income Tax ACIT, CC-1,Nashik
2010-11 82.67 Income Tax ACIT, CC-1,Nashik
2011-12 20.99 Income Tax ACIT, CC-1,Nashik
2012-13 2,914.66 Income Tax ACIT, CC-1,Nashik
Total 7,765.85
viii) According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of loans or borrowing to banks financial institutions and
debenture holders. The Company has not borrowed any funds from
Government.
ix) According to the information and explanations given to us, on an
overall basis, funds raised by way of QIB placement were temporarily
placed in current investments, pending utilisation for the stated
objective, and subsequently utilised for the purpose for which they
were raised. Terms and conditions of utilisation of funds raised
through debt instruments & loans from related parties have not been
mentioned in the respective documents and hence, we are unable to
comment on this clause.
x) According to the information and explanations given to us and on the
basis of representation of the management which we have relied upon, no
fraud by the Company or on the company by its officers or employees has
been noticed or reported during the year.
xi) According to the information and explanations given to us,
managerial remuneration has been paid in accordance with the provisions
of section 197 read with Schedule V to the Companies Act, 2013.
xii) Since the company is not a nidhi company, this clause is not
applicable.
xiii)According to the information and explanations given to us, all
transactions with the related parties are in compliance with section
177 and 188 of Companies Act, 2013 as applicable and the details have
been disclosed in the Financial Statements as required by the
applicable accounting standards.
(xiv) According to the information and explanations given to us, the
requirements of Section 42 of The Companies Act, 2013 have been prima
facie complied in respect of shares allotted to Qualified Institutional
Buyers. The funds so raised were temporarily placed in current
investments, pending utilisation for the stated objective, and
subsequently utilised for the purpose for which they were raised.
(xv) The company has not entered into any non cash transactions with
directors or persons connected with him.
(xvi)The company is not required to be registered under section 45-IA
of the Reserve Bank of India Act, 1934.
for M P Chitale & Co
Chartered Accountants
Firm Regn No. 101851W
Ashutosh Pednekar
Partner
ICAI M No. 041037
Place : Mumbai.
Date :May 20, 2016
Mar 31, 2016
We have audited the accompanying financial statements of Ashoka
Buildcon Limited ("the Company"), which comprise the Balance Sheet as
at 31st March 2016, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
2. Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. 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 financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
3. Auditor''s Responsibility
3.1 Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
3.2 We have taken into account the provisions of the Act, the
accounting and auditing standards and matters which are required to be
included in the audit report under the provisions of the Act and the
Rules made thereunder.
3.3 We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company''s
preparation of the financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by Company''s Directors, as well as evaluating the
overall presentation of the financial statements.
3.4 We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
financial statements.
4. Opinion
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 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 31st March, 2016, and its profit and its cash flows for the year
ended on that date.
5. Emphasis of Matter
We invite attention to Note 27(XIII) of the financial results regarding
the provision made against / write offs of the exposure of the Company
in one of its associates, PNG Tollways Limited due to the termination
of the service concession agreement with NHAI by the associate company.
Our opinion is not modified in respect of these matters.
6. Report on Other Legal and Regulatory Requirements
(i) As required by the Companies (Auditor''s Report) Order, 2016 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, a statement on the matters
specified in the paragraph 3 and 4 of the order is given in Annexure A.
(ii) As required by sub- section (3) of section 143 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 and the Cash
Flow Statement 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 Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of written representations received from the Directors
and taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2016, 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"; and
(iii) With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit And Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations in its
financial statements. - Refer note 27(XI) of financial statements.;
(ii) Based on the information and explanations provided to us, the
company has made the required provisions towards material foreseeable
losses, in respect of long term contracts.
(iii) The company was not required to deposit or pay any dues in
respect of the Investor Education and Protection Fund during the year.
i) a) The Company is maintaining proper records showing full
particulars, including quantitative details and situation of all fixed
assets.
b) Pursuant to the company''s programme of verifying fixed assets in a
phased manner, physical verification of major fixed assets was
conducted during the year. In our opinion, such programme of
verification is reasonable.
- We are informed that no material discrepancies were noticed on such
verification.
c) According to the information and explanations given to us title
deeds of immovable properties, classified as fixed assets, are in the
name of the company, except for title deed in case of one freehold land
(gross block Rs.200 lakhs, net block Rs.200 lakhs), for which transfer
deed is yet to be executed in the name of the Company
ii) Inventories have been physically verified by the Management at
regular intervals. In our opinion, the frequency of such verification
is reasonable. We are informed that discrepancies noticed on such
verification were not material as compared to the book records. The
discrepancies noticed on such verification have been properly dealt
with in the books of account.
iii) a) Based on the information and explanations furnished to us, we
are of the opinion that the terms and conditions of unsecured loans
granted to five parties covered in the register maintained u/s 189 of
the Companies Act, 2013 are prima facie not prejudicial to the interest
of the company.
b) In case of the above loan, the schedule of principal repayment and
interest payment has been stipulated.
c) Since the principal and interest are not due for payment, we are
unable to comment on this clause.
iv) According to the information and explanations given to us and on
the basis of representations of the management which we have relied
upon, the loans given by the company are not covered by Section 185 or
Section 186 of The Companies Act, 2013 and hence, this clause is not
applicable.
v) According to the information and explanations given to us, the
Company has not accepted deposits from the public in terms of
provisions of sections 73 to 76 of the Companies Act, 2013.
vi) According to the information and explanations given to us, pursuant
to the rules prescribed by the Central Government for the maintenance
of cost records under section 148(1) of the Companies Act, 2013, we
have broadly reviewed the cost records and are of the opinion that
prima facie, the prescribed records have been made and maintained by
the Company.
vii) a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
has been generally regular in depositing undisputed statutory dues
including investor education and protection fund, provident fund,
employees state insurance, income tax, Value Added Tax (VAT), sales
tax,, custom duty, excise duty, value added tax, cess and other
material statutory dues, as applicable, with the appropriate
authorities, except that there have been certain delays in payments in
case of Income Tax Deducted at Source, VAT, sales tax, works contract
tax and profession tax in certain cases. There are no statutory dues
that are outstanding as of March 31, 2016 for a period of more than six
months.
b) As at the year-end, according to the records of the Company and
information and explanations given to us, the disputed statutory dues
that have not been deposited on account of appeal matters pending
before the appropriate authorities are as under:-
Financial Year Amount Particulars Authority
(Rs.in
lakhs)
2000-01 93.34 Customs Asst. Commissioner of
Customs, Mumbai
2006-07 to 404.57 Labour cess Asst. Commissioner,
2009-10 Madhya Pradesh
2006-07 to 44.11 Labour cess Asst. Commissioner,
2010-11 Madhya Pradesh
2006-07 to 587.00 Labour cess Asst. Commissioner,
2010-11 Chattisgarh
2006-07,2009- 2,312.31 Sales Tax Joint Commissioner
10 and 2011- (Appeal), Maharashtra
2012
2008-09 & 40.81 Sales Tax Deputy Commissioner
2009-10 (Appeal), Chhattisgarh
2008-09 1.93 Sales Tax Asst. Commissioner, Gujarat
2007-2008 0.32 Sales Tax Asst. Commissioner,
Rajasthan
2011-2012 1.57 Sales Tax Asst. Commissioner,
Karnataka
2012-2013 1,204.12 Sales Tax Asst. Commissioner,
West Bengal
2005-06 to 14.56 Entry Tax Asst. Commissioner,
2008-09 Rajasthan
2013-16 31.19 Entry Tax High Court -Writ petition,
Bengal
2008-09 11.48 Income Tax ACIT, CC-1,Nashik
2009-10 0.24 Income Tax ACIT, CC-1,Nashik
2010-11 82.67 Income Tax ACIT, CC-1,Nashik
2011-12 20.99 Income Tax ACIT, CC-1,Nashik
2012-13 2,914.66 Income Tax ACIT, CC-1,Nashik
Total 7,765.85
viii) According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of loans or borrowing to banks financial institutions and
debenture holders. The Company has not borrowed any funds from
Government.
ix) According to the information and explanations given to us, on an
overall basis, funds raised by way of QIB placement were temporarily
placed in current investments, pending utilisation for the stated
objective, and subsequently utilised for the purpose for which they
were raised. Terms and conditions of utilisation of funds raised
through debt instruments & loans from related parties have not been
mentioned in the respective documents and hence, we are unable to
comment on this clause.
x) According to the information and explanations given to us and on the
basis of representation of the management which we have relied upon, no
fraud by the Company or on the company by its officers or employees has
been noticed or reported during the year.
xi) According to the information and explanations given to us,
managerial remuneration has been paid in accordance with the provisions
of section 197 read with Schedule V to the Companies Act, 2013.
xii) Since the company is not a nidhi company, this clause is not
applicable.
xiii)According to the information and explanations given to us, all
transactions with the related parties are in compliance with section
177 and 188 of Companies Act, 2013 as applicable and the details have
been disclosed in the Financial Statements as required by the
applicable accounting standards.
(xiv) According to the information and explanations given to us, the
requirements of Section 42 of The Companies Act, 2013 have been prima
facie complied in respect of shares allotted to Qualified Institutional
Buyers. The funds so raised were temporarily placed in current
investments, pending utilisation for the stated objective, and
subsequently utilised for the purpose for which they were raised.
(xv) The company has not entered into any non cash transactions with
directors or persons connected with him.
(xvi)The company is not required to be registered under section 45-IA
of the Reserve Bank of India Act, 1934.
for M P Chitale & Co
Chartered Accountants
Firm Regn No. 101851W
Ashutosh Pednekar
Partner
ICAI M No. 041037
Place : Mumbai.
Date :May 20, 2016
Mar 31, 2015
We have audited the accompanying financial statements of Ashoka
Buildcon Limited ("the Company"), which comprise the Balance Sheet as
at March 31, 2015, and the Statement of Profit and Loss and Cash Flow
Statement for the period then ended, and a summary of significant
accounting policies and other explanatory information hereafter
referred to as financial statements.
2. Management''s responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. 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 financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
3. Auditor''s Responsibility
3.1 Our responsibility is to express an opinion on these financial
statements based on our audit.
3.2 We have taken into account the provisions of the Act, the
accounting and auditing standards and matters which are required to be
included in the audit report under the provisions of the Act and the
Rules made there under.
3.3 We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
3.4 An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company''s preparation of the financial statements that give a
true and fair view, in order to design audit procedures that are
appropriate in the circumstances, but not for purpose of expressing an
opinion on whether the Company has in place an adequate internal
financial control systems over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by Company''s Directors, as well as
evaluating the overall presentation of the financial statements.
3.5 We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion on the
financial statements.
4. Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India, of the state of affairs of the Company as at March 31, 2015, and
its profit and its cash flows for the year ended on that date.
5. Report on Other Legal and Regulatory Requirements
As required by section 143(3) of the Companies Act 2013, 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
purpose of our audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c. The Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d. In our opinion, aforesaid financial statements comply with the
Accounting Standards referred to Section 133 of the Companies Act, 2013
read with Rule 7 of the Companies (Accounts) Rules, 2014.
e. On the basis of written representations received from the directors
as on March 31, 2015 and taken on records by Board of Directors, none
of the directors is disqualified as on March 31, 2015, from being
appointed as a director in terms of Section 164 (2) of the Act.
6. With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations in its
financial statements. - Refer note 27(IX) of financial statements.
(ii) The Company does not have any long term contracts. Based on the
information & explanations provided to us, the Company was not required
to make any provisions for material foreseeable losses, in respect of
the forward contracts, entered into.
(iii) The Company was not required to deposit or pay any dues in
respect of the Investor Education and Protection Fund during the year.
7. As required by the Companies (Auditor''s Report) Order, 2015 ("the
Order") issued by the Central Government in terms of Section 143(11) of
the Act, we give in the Annexure a statement on the matters specified
in paragraphs 3 and 4 of the Order.
ANNEXURE TO THE INDEPEDENT AUDITORS'' REPORT (Referred to in Paragraph 7
of our Report of even date)
1. (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The company has a three year cycle to physically verify the fixed
assets. As per this cycle no verification was due during the year.
Accordingly, the company has not physically verified its fixed assets
during the year.
2. (a) Inventories have been physically verified by the Management
at regular intervals. In our opinion, the frequency of such
verification is reasonable.
(b) The procedure of physical verification of inventories followed by
the management is reasonable and adequate in relation to the size of
the Company.
(c) In our opinion, the company maintains proper records of inventory.
We have been informed that no material discrepancies were noticed on
physical verification of inventories.
3. (a) The company has granted unsecured loans to the parties
covered in the register maintained u/s 189 of the Companies Act, 2013.
Based on the information and explanations furnished to us, we are of
the opinion that prima facie receipt of principal and interest,
wherever applicable, are regular.
(b) In view of the above, the question of the amounts being overdue do
not arise.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and sale of
goods and services. During the course of our audit we did not notice
any continuing failure to correct any major weakness in internal
controls.
5. According to the information and explanations given to us, the
Company has not accepted any deposits.
6. We have reviewed the cost compliance certificate of the company,
and are of the opinion that prima facie, the cost records pursuant to
Rule 5 of the Companies (Cost Records and Audit) Rules 2014 have been
made and maintained. However, we did not conduct a detailed examination
ofthe records.
7. (a) According to the information and explanations given to us
and on the basis of books and records produced and examined by us,
undisputed statutory dues have generally been regularly deposited with
the appropriate authorities. There are no statutory dues that are
outstanding as of March 31, 2015 for a period of more than six months.
(b) As at the year-end, according to the records of the Company and
information and explanations given to us, the disputed statutory dues
that have not been deposited on account of appeal matters pending
before the appropriate authorities are as under:-
Financial Amount Particulars Authority
Year (Rs. in lakhs)
2000-01 93.34 Customs Asst. Commissioner of
Customs, Mumbai
2006-07 to 404.57 Labour Cess Labour Commissioner,
2009- 10 Madhya Pradesh
2006-07 to 44.11 Labour Cess Labour Commissioner,
2010- 2011 Madhya Pradesh
2006-07 to 587.00 Labour Cess Labour Commissioner,
2010-2011 Chattisgarh
2007-08 59.01 Service Tax Addl. Commissioner of
Service Tax, Nasik
2005- 06 to 71.11 Service Tax Addl. Commissioner
2006- 07 (Central Customs, Excise
& Service Tax), Nasik
2006-07 & 2252.60 Sales Tax Joint Commissioner
2009- 10 (Appeal),Maharashtra
2014-15 8.47 Sales Tax Deputy Commissioner
(Appeal), Tamilnadu
2010- 11 82.24 Sales Tax Joint Commissioner,
Bengal
2009-10 22.32 Sales Tax Deputy Commissioner
(Appeal), Chhattisgarh
2008- 09 2.18 Sales Tax Deputy Commissioner
(Appeal), Gujarat
2013-15 25.87 Entry Tax High Court-Writ Petition
2003-04 358.80 Income Tax DCIT, Nashik
2011- 12 20.99 Income Tax DCIT,Nashik
Total 4,032.61
(c) During the year there is no amount that was required to be
transferred to the Investor Education and Protection Fund in accordance
with the relevant provisions of the Companies Act, 2013 and the Rules
made there under.
8. The Company has no accumulated losses as at the financial year end.
There were no cash losses incurred in the financial year or the
previous financial year.
9. As per the books and records maintained by the Company and
according to the information and explanations given to us, the Company
has not defaulted in repayment of dues to banks/ financial institutions
or debenture holders.
10. According to the information and explanations given to us, the
Company has given guarantees for loans taken by group companies from
banks or financial institutions in the earlier years, for which
approvals from Central Government are to be obtained, which in our
opinion are generally not prima-facie prejudicial to the interest of
the Company.
11. Based on the information and explanations given to us, we find
that the Company has utilized the term loans for the purpose they were
obtained.
12. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
has been noticed or reported during the year.
For M P Chitale & Co.
Chartered Accountants
ICAI FR No. 101851W
Murtuza Vajihi
Place: Mumbai Partner
Date : May 13, 2015 ICAI M No. 112555
Mar 31, 2013
1. We have audited the accompanying financial statements of Ashoka
Buildcon Limited ("the Company"), which comprise the Balance Sheet
as at March 31, 2013, and the Statement of Profit and Loss and Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s responsibility for the Financial Statements
2. Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor''s Responsibility
3. Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in
the circumstances. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by management, as well as evaluating the
overall presentation ofthe financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. In our opinion and to the best of our information and according to
the explanations given to us, the financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
(b) in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of Matter
7. Without qualifying our audit opinion, we invite attention to note
no.15 (a) on exceptional items regarding impairment of the Right to
Collect Toll of a BOT projects aggregating to Rs. 1,568.85 lakhs.
Report on Other Legal and Regulatory Requirements
8. As required by section 227(3) of the Companies Act 1956, we report
that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books.
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account
d. in our opinion, the Balance Sheet, Statement ofProfit and Loss, and
Cash Flow Statement complies with the Accounting Standards referred to
in subsection (3C) of section 211 of the Companies Act, 1956;
e. on the basis of written representations received from the directors
and taken on record by the Board of Directors, none of the directors is
disqualified as on March 31,2013, from being appointed as a director in
terms of clause (g) of sub-section (1) of section 274 of the Companies
Act, 1956.
9. As required by the Companies(Auditor''s Report) Order,2003 ("the
Order") issued by the Central Government of India in terms of
sub-section(4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
(i) (a) The Company has maintained reasonable records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) Pursuant to the company''s programme of verifying fixed assets
once in three years, the Company has conducted physical verification of
fixed assets during the year. In our opinion, such programme of
verification is reasonable. As per the information and explanations
made available to us, no material discrepancies were noticed on
verification.
(c) Based on our examination of the records of the company, we find
that no substantial part of the fixed assets affecting the going
concern have been disposed off during the year.
(ii) (a) Inventories have been physically verified by the Management
during the year. In our opinion, the frequency of such verification is
reasonable.
(b) In our opinion, the procedure of physical verification of
inventories followed by the management is reasonable and adequate in
relation to the size of the company and the nature of its business.
(c) In our opinion, the company maintains proper records of inventory.
The process of inventory recording, however, needs to be strengthened.
Discrepancies noticed on physical verification were not material and
the same have been dealt with properly in the books of accounts.
(iii) (a) The Company has taken / granted unsecured loans, in the
earlier years as well as in F.Y. 2012-13, to/from companies/ firms or
other parties covered in the register maintained under Section 301of
the Act. Details are as under:
Loans taken
Name of the Entity Maximum Year-end
Amount of Balance
Loan (Rs. in lakhs)
(Rs. in
lakhs)
Interest Bearing
Abhijeet Ashoka Infrastructure Pvt.Ltd. 2,602.00 2,602.00
Name of the Entity
Non-Interest Bearing
Ashoka Belgaum Dharwad Toll way Ltd. 753.16 NIL
Ashoka Dhankuni Khargpur Tollways Ltd. 16,441.50 5,157.23
Ashoka DSC Katni 647.39 NIL
Bye-pass Road Ltd.
Ashoka Highways (Bhandara) Ltd. 6,201.28 1,410.10
Ashoka Highways (Durg) Ltd. 4,274.94 2,400.00
Ashoka Precon Pvt. Ltd. 218.50 218.50
Ashoka Sambalpur Baragarh Tollway Ltd. 1,036.42 NIL
Ashoka Technologies Pvt.Ltd. 41.51 14.01
Jaora Nayagaon Toll Road Co.Pvt.Ltd 2,000.00 2,000.00
PNG Tollway Limited 4,396.60 4,396.60
Viva Highways Ltd. 1,600.00 76.80
Viva Infrastructure Ltd. 1,200.59 769.59
Ashoka InfTastructure Ltd. 3,405.02 912.75
Ashoka DSC Katni 647.38 NIL
Bye-pass Road Ltd.
Interest Bearing
Ashoka DSC Katni 802.271 189.51
Bye-pass Road Ltd.
Ashoka Infraways Ltd. 2,111.57 1,449.77
(b) Based on the information and explanations given to us, in our
opinion, the rates of interest on which the unsecured loans have been
taken/granted are prima facie not prejudicial to the interests of the
company. Since the Company has not entered into formal agreements for
loans, we are not in a position to comment whether the rate of interest
of loans granted/taken and other terms and conditions on which the
loans are granted/taken are prima facie not prejudicial to the
interests of the company.
(c) &(d) Since the repayment schedule for such loans is not stipulated,
we are unable to comment on the regularity of receipt/ repayment of
principal and interest payment as well as the adequacy of steps taken
to recover the amount.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and sale of
goods. During the course of our audit we did not notice any continuing
failure to correct any major weakness in internal controls.
(v) In respect of transactions entered in the register maintained in
pursuance of Section 301 of the Companies Act, 1956,
(a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
the transactions that needed to be entered into the register maintained
under Section 301 have been so entered.
(b) According to the information and explanations given to us there are
transactions where the company has availed as well as rendered
construction services and also transactions of purchase and sale of
goods in excess of Rs. 5 lakhs with some parties / companies listed in
the register maintained under section 301. In respect of construction
services, we are informed that these are skilled services for which
alternative sources of supply are not readily available. Similarly in
case of purchase and sales goods, we are informed that these are
specialized items for which alternative sources of supply are not
readily available; as such comparison of prices could not be made.
(vi) The Company has not accepted deposits from public. Consequently
the directives issued by Reserve Bank of India and the provisions of
sections 58A, 58AA or any other relevant provisions of the Act and the
rules framed there under are not applicable.
(vii) The Company has an internal audit system which, in our opinion is
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the cost records maintained by the
Company relating to Construction/BOT/manufacturing activities. We have
not made an examination of the cost records required to be maintained
under Companies (Cost Accounting Records) Rules, 2011 in respect of
their accuracy and completeness as the Company is in the process of
obtaining the compliance report of the cost accountant.
(ix) (a) Undisputed statutory dues including Provident Fund, Income tax
and Service tax, Works Contract Tax, Profession Tax & Employers
contribution to ESIC (ESIC) have been generally regularly deposited in
many cases with the appropriate authorities. According to the
information and explanations given to us, no undisputed amounts payable
in respect of the above statutory dues were outstanding as on March 31,
2013 for a period of more than six months from the date they became
payable.
(b) The disputed statutory dues that have not been deposited on account
of appeal matters pending before the appropriate authorities are as
under:-
Financial Year Amount Particulars Authority
(Rs. in
lakhs)
2000-01 93.34 Customs Asst. Commissioner of
Customs, Mumbai
2006-07 to
2009-10 404.57 Labour Cess Asst. Labour Commissioner,
Madhya Pradesh
2006-07 to
2010-2011 44.11 Labour Cess Asst. Labour Commissioner,
Madhya Pradesh
2006-07 to
2010-2011 587.00 Labour Cess Asst. Labour Commissioner,
Chattisgarh
2007-08 59.01 Service Tax Addl. Commissioner of
Service Tax, Nasik
2005-06 to
2006-07 71.11 Service Tax Addl. Commissioner
(Central Customs, Excise &
Service Tax), Nasik
Total 1,259.14
(x) The Company has no accumulated losses as at the financial year end.
There were no cash losses incurred in the financial year or the
previous financial year.
(xi) As per the books and records maintained by the Company and
according to the information and explanations given to us, the Company
has not defaulted in repayment of dues loans to banks or financial
institutions.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) The Company is not a chit fund / nidhi /mutual benefit fund /
society. Hence, the provisions of any special statute as specified
under clause (xiii) ofParagraph 4 of the Order are not applicable to
the Company.
(xiv) In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in investments.
(xv) According to the information and explanations given to us, the
Company has given guarantees for loans taken by group companies from
banks or financial institutions, for which approvals from Central
Government are to be obtained, which in our opinion are generally not
prima-facie prejudicial to the interest of the Company.
(xvi) In our opinion and according to the information and explanations
given to us, the Company has applied the term loans for the purpose for
which they were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet and cash flow of the
Company, the Company has not used the short term loans for long term
investments.
(xviii) The Company has not made any preferential allotment of shares
to parties/companies covered in the register maintained u/s 301 of the
Companies Act 1956
(xix) The Company has not issued any debentures.
(xx) The company has not raised any money through a public issue during
the year.
(xxi) Based on information and explanations furnished by the
management, no frauds on or by the company were noticed or reported
during the year.
For M P Chitale & Co.
Chartered Accountants
ICAI FR No. 101851W
Murtuza Vajihi
Partner
ICAI M No. 112555
Place: Mumbai,
Date : May 10, 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of Ashoka Buildcon
Limited as at March 31, 2012 and the relative Profit and Loss Account
and the Cash Flow Statement for the year ended on that date all of
which we have signed under reference to this report. These fnancial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these fnancial statements
based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
fnancial statements are free of material misstatement. An audit
includes, examining on a test basis, evidence supporting the amounts
and disclosures in the fnancial statements. An audit also includes
assessing the accounting principles used and Significant estimates made
by management, as well as evaluating the overall presentation of the
fnancial statements. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 and as
amended by Companies (Auditors' Report) (Amendment) order 2004
(together the Order) issued by the Central Government of India in terms
of Section 227(4A) of the Companies Act, 1956 we annex hereto a
statement on the matters specifed in paragraphs 4 and 5 of the said
Order.
4. We report that: -
(a) We have 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, the Company has kept proper books of account as
required by law so far as appears from our examination of the books.
(c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
(d) In our opinion and to the best of our information and according to
the explanations given to us, the Balance Sheet and the Profit & Loss
Account and Cash Flow Statement read with the Notes thereon comply with
the Accounting Standards referred to in Section 211(3C) of the
Companies Act, 1956 to the extent applicable.
(e) On the basis of written representations from the Directors, taken
on record by the Board of Directors, none of the directors is
disqualifed as on March 31, 2012 from being appointed as a director u/s
274 (1)(g) of the Companies Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the Balance Sheet, the Profit & Loss
Account and the Cash Flow Statement read with the Notes thereon give
the information as required by the Companies Act, 1956 in the manner so
required and give a true and fair view: -
in case of the Balance Sheet, of the state of affairs of the Company as
at March 31, 2012
in case of the Profit and Loss Account, of the Profit for the year ended
on that date.
in case of the Cash Flow Statement, of the cash fows for the year ended
on that date.
Annexure referred to in Paragraph 4 of our Report of even date
(i) (a) The Company has maintained reasonable records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) Pursuant to the company's programme of verifying fixed assets once
in three years, the Company has conducted physical verifcation of fixed
assets during the year. In our opinion, such programme of verifcation
is reasonable. As per the information and explanations made available
to us, no material discrepancies were noticed on verifcation.
(c) Based on our examination of the records of the company, we fnd that
no substantial part of the fixed assets affecting the going concern have
been disposed off during the year..
(ii) (a) Inventories have been physically verifed by the Management
during the year. In our opinion, the frequency of such verifcation is
reasonable.
(b) In our opinion, the procedure of physical verifcation of
inventories followed by th e management is reasonable and adequate in
relation to the size of the company and the nature of its business.
(c) In our opinion, the company maintains proper records of inventory.
The process of inventory recording, however, needs to be strengthened.
Discrepancies noticed on physical verifcation were not material and the
same have been dealt with properly in the books of accounts.
(iii) (a) The Company has taken / granted unsecured loans, in the
earlier years as well as in F.Y. 2011-12, to/ from companies/ frms or
other parties covered in the register maintained under Section 301 of
the Act. Details are as under:
Loans taken
Name of the Entity Maximum Year-end
Amount of Balance
Loan (Rs. in
(Rs. in lakhs )
lakhs )
Interest Bearing
Viva Highways Pvt. Ltd. 1678.56 1235.15
Jayaswals Ashoka 2,361.45 2,361.45
Infrastructure Pvt. Ltd
Ashoka Highway Ad 94.57 Nil
Ashoka Infraways
Pvt. Ltd. 2,505.20 1,875.01
Loans Granted
Maximum Year-end
Name of the Entity Amount of Loan Balance
(Rs. in lakhs ) (Rs. in lakhs )
Non-Interest Bearing
Ashoka Infrastructure Ltd. 3564.41 3325.51
Viva Infrastructure
Pvt. Ltd. 3360.12 3360.12
Ashoka Highways (Bhandara)
5,945.14 5,231.28
Ltd.
Ashoka Highways (Durg)
Ltd. 4,257.94 3934.94
Ashoka Technologies
Pvt. Ltd. 28.01 18.01
Ashoka Construwell
Pvt. Ltd. 29.18 28.78
Ashoka Precon Pvt. Ltd. 30.00 30.00
Ashoka DSC Katni Bye-pass 2,195.85 647.38
Road Pvt. Ltd.
Ashoka Dhankuni Khargpur 6,887.00 6,887.00
Tolways Ltd.
PNG Tollway Limited 1300.00 1300.00
Jaora Nayagaon Toll Road Co. 613.60 613.60
Pvt. Ltd
Interest Bearing
Ashoka DSC Katni Bye-pass 424.96 424.96
Road Pvt. Ltd. Ã Loan
(b) Based on the information and explanations given to us, in our
opinion, the rates of interest on which the unsecured loans have been
taken are prima facie not prejudicial to the interests of the company.
Since the Company has not entered into formal agreements for loans, we
are not in a position to comment whether the rate of interest of loans
granted and other terms and c onditions on which the loans are
granted/taken are prima facie not prejudicial to the interests of the
company.
(c) & (d) Since the repayment schedule for such loans is not
stipulated, we are unable to comment on the regularity of
receipt/repayment of principal and interest payment as well as the
adequacy of steps taken to recover the amount.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and sale of
goods. During the course of our audit we did not notice any continuing
failure to correct any major weakness in internal controls.
(v) In respect of transactions entered in the register maintained in
pursuance of Section 301 of the Companies Act, 1956,
(a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
the transactions that needed to be entered into the register maintained
under Section 301 have been so entered.
(b) According to the information and explanations given to us there are
transactions where the company has availed as well as rendered
construction services and also transactions of purchase and sale of
goods in excess of Rs. 5 lakhs with some parties / companies listed in
the register maintained under section 301. In respect of construction
services, we are informed that these are skilled services for which
alternative sources of supply are not readily available. Similarly in
case of purchase and sales goods, we are informed that these are
specialized items for which alternative sources of supply are not
readily available; as such comparison of prices could not be made.
(vi) The Company has not accepted deposits from public. Consequently
the directives issued by Reserve Bank of India and the provisions of
sections 58A, 58AA or any other relevant provisions of the Act and the
rules framed there under are not applicable.
(vii) The Company has an internal audit system which, in our opinion is
commensurate with the size and nature of its business.
(viii)We have broadly reviewed the cost records maintained by the
Company relating to Construction/BOT/manufacturing activities. We have
not made an examination of the cost records required to be maintained
under Companies (Cost Accounting Records) Rules, 2011 in respect of
their accuracy and completeness as the Company is in the process of
obtaining the compliance report of the cost accountant.
(ix) (a) Undisputed statutory dues including Provident Fund, Income tax
and Service tax, Works Contract Tax & Employers contribution to ESIC
(ESIC) have been generally regularly deposited in many cases with the
appropriate authorities except that there have been delays in payments
of Works Contract Tax Act in few cases. According to the information
and explanations given to us, no undisputed amounts payable in respect
of the above statutory dues were outstanding as on 31st March, 2012 for
a period of more than six months from the date they became payable.
(b) The disputed statutory dues that have not been deposited on account
of appeal matters pending before the appropriate authorities are as
under:-
Financial Amount Particulars Authority
Year (Rs. In lacs)
2000-01 93.34 Customs Asst.
Commissioner of
Customs, Mumbai
2007-08 105.00 Customs Commissioner of
Customs, Mumbai
2006-07 to 404.57 Labour Cess Asst.Labour
2009-10 Commissioner,
Madhya Pradesh
2006-07 to 44.11 Labour Cess Asst. Labour
2010-2011 Commissioner,
Madhya Pradesh
2006-07 to 587.00 Labour Cess Asst. Labour
2010-2011 Commissioner,
Chattisgarh
2007.08 59.01 Service Tax Addl.
Commissioner of
Service Tax, Nasik
2005-06 to 71.11 Service Tax Addl.
2006-07 Commissioner
(Central Customs,
Excise & Service
Tax), Nasik
2011-12 91.56 Sales Tax Commercial Tax,
Odissa
Total 1455.69
(x) The Company has no accumulated losses as at the fnancial year end.
There were no cash losses incurred in the fnancial year or the previous
fnancial year.
(xi) As per the books and records maintained by the Company and
according to the information and explanations given to us, the Company
has not defaulted in repayment of dues loans to banks or fnancial
institutions.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii)The Company is not a chit fund / nidhi /mutual benefit fund /
society. Hence, the provisions of any special statute as specifed under
clause (xiii) of Paragraph 4 of the Order are not applicable to the
Company.
(xiv) In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in investments.
(xv) According to the information and explanations given to us, the
Company has given guarantees for loans taken by group companies from
banks or fnancial institutions, for which approvals from Central
Government are to be obtained, which in our opinion are generally not
prima- facie prejudicial to the interest of the Company.
(xvi) In our opinion and according to the information and explanations
given to us, the Company has applied the term loans for the purpose for
which they were obtained.
(xvii)According to the information and explanations given to us and on
an overall examination of the Balance Sheet and cash fow of the
Company, the Company has not used the short term loans for long term
investments.
(xviii)The Company has not made any preferential allotment of shares to
parties/companies covered in the register maintained u/s 301 of the
Companies Act 1956
(xix) The Company has not issued any debentures.
(xx) The company has not raised any money through a public issue during
the year.
(xxi) Based on information and explanations furnished by the
management, no frauds on or by the company were noticed or reported
during the year.
for M P Chitale & Co.
Chartered Accountants
ICAI FR No.101851W
Murtuza Vajihi
Partner
ICAI M. No. 112555
Mumbai, May 18, 2012
Mar 31, 2011
1. We have audited the attached Balance Sheet of M/s Ashoka Buildcon
Limited as at March 31, 2011 and the relative Profit and Loss Account
and the Cash Flow Statement for the year ended on that date all of
which we have signed under reference to this report. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements
based on our audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes, examining on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall presentation of the
financial statements. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 and as
amended by Companies (Auditors' Report) (Amendment) order 2004
(together the Order) issued by the Central Government of India in terms
of Section 227(4A) of the Companies Act, 1956 we annex hereto a
statement on the matters specified in paragraphs 4 and 5 of the said
Order.
4. We report that: -
(a) We have 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, the Company has kept proper books of account as
required by law so far as appears from our examination of the books.
(c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account.
(d) In our opinion and to the best of our information and according to
the explanations given to us, the Balance Sheet and the Profit & Loss
Account and Cash Flow Statement read with the Notes thereon comply with
the Accounting Standards referred to in Section 211(3C) of the
Companies Act, 1956 to the extent applicable.
(e) On the basis of written representations from the Directors, taken
on record by the Board of Directors, none of the directors is
disqualified as on March 31, 2011 from being appointed as a director
u/s 274 (1)(g) of the Companies Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the Balance Sheet, the Profit & Loss
Account and the Cash Flow Statement read with the Notes thereon give
the information as required by the Companies Act, 1956 in the manner so
required and give a true and fair view: -
Rs in case of the Balance Sheet, of the state of affairs of the Company
as at March 31, 2011
Rs in case of the Profit and Loss Account, of the profit for the year
ended on that date.
Rs in case of the Cash Flow Statement, of the cash flows for the year
ended on that date.
Annexure referred to in Paragraph 4 of our Report of even date
(i) (a) The Company has maintained reasonable records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) Pursuant to the company's programme of verifying fixed assets once
in three years, the Company has conducted physical verification of
fixed assets during the year. In our opinion, such programme of
verification is reasonable. As per the information and explanations
made available to us, we observed that no material discrepancies were
noticed on verification.
(c) Based on our examination of the records of the company, we find
that no substantial part of the fixed assets has been disposed off
during the year.
(ii) (a) Inventories have been physically verified by the Management
during the year. In our opinion, the frequency of such verification is
reasonable.
(b) In our opinion, the procedure of physical verification of
inventories followed by the management is reasonable and adequate in
relation to the size of the company and the nature of its business.
(c) In our opinion, the company maintains proper records of inventory.
Discrepancies noticed on physical verification were not material and
the same have been dealt with properly in the books of accounts.
(iii) (a) The Company has taken / granted unsecured loans to companies/
firms or other parties covered in the register maintained under Section
301 of the Act. Details are as under:
Loans taken
Name of the Entity Maximum Amount of Loan
(Rs. in lakhs)
Interest Bearing -
Viva Highways Pvt. Ltd. 3,242.64
feswals Ashoka Infrastructure Pvt. Ltd 2.143.13
Ashoka Highway Ad 151.52
Ashoka DSC Katni Bye-pass Road Pvt. Ltd. 252.25
Ashoka Infraways Pvt. Ltd. 4,364.68
Name of the Entity Maximum Amount of Loan
(Rs. in lakhs )
Non Interest Bearing Viva Highways
Pvt. Ltd. 439.90
Of the above, amounts aggregating Rs. 6,308.06 lakhs of four parties
are outstanding as on March 31, 2011.
Loans Granted
Name of the Entity Maximum Amount of Loan
( Rs. in lakhs )
Non-Interest Bearing -
Ashoka Infrastructure Ltd. 3,511.09
Viva Infrastructure Pvt. Ltd. 3379.12
Ashoka Highways (Bhandara) Ltd. 10996.18
Ashoka Highways (Durg) Ltd. 3,934.94
Ashoka Technologies Pvt. Ltd. 8.76
Ashoka Construwell Pvt. Ltd. 29.18
Ashoka Pre-Con Pvt. Ltd. 25.00
Ashoka-DSC Katni Bypass Road Pvt. Ltd. 2,195.85
Of the above, amounts aggregating Rs. 15,570.78 lakhs of five parties
are outstanding as on March 31, 2011.
(b) Based on the information and explanations given to us, in our
opinion, the rates of interest on which the unsecured loans have been
taken are prima facie not prejudicial to the interests of the company.
Since the Company has not entered into formal agreements for loans, we
are not in a position to comment whether the rate of interest of loans
granted and other terms and conditions on which the loans are
granted/taken are prima facie not prejudicial to the interests of the
company.
(c) & (d)Since the repayment schedule for such loans is not stipulated,
we are unable to comment on the regularity of receipt/repayment of
principal and interest payment as well as the adequacy of steps taken
to recover the amount.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and sale of
goods. During the course of our audit we did not notice any continuing
failure to correct any major weakness in internal controls.
(v) In respect of transactions entered in the register maintained in
pursuance of Section 301 of the Companies Act, 1956,
(a) To the best of our knowledge and belief and according to the
information and explanations given to us, we are of the opinion that
the transactions that needed to be entered into the register maintained
under Section 301 have been so entered.
(b) According to the information and explanations given to us there are
transactions where the company has availed as well as rendered
construction services and also transactions of purchase and sale of
goods in excess of Rs. 5 lakhs with some parties / companies listed in
the register maintained under section 301. In respect of construction
services, we are informed that these are skilled services for which
alternative sources of supply are not readily available. Similarly in
case of purchases and sales of goods, we are informed that these are
specialized items for which alternative sources of supply are not
readily available; as such comparison of prices could not be made.
(vi) The Company has not accepted deposits from public. Consequently
the directives issued by Reserve Bank of India and the provisions of
sections 58A, 58AA or any other relevant provisions of the Act and the
rules framed there under are not applicable.
(vii) The Company has an internal audit system which needs a scope
enhancement to be commensuratewith the size and nature of its business.
(viii) According to the information and explanations given to us by the
management, the Company is not required to maintain any cost records
for its product/ services prescribed by the Central Government under
section 209(1)(d)
(ix) (a) Undisputed statutory dues including Provident Fund, Income tax
and Service tax have been generally regularly deposited in many cases
with the appropriate authorities. According to the information and
explanations given to us, no undisputed amounts payable in respect of
the above statutory dues were outstanding as on 31st March, 2011 for a
period of more than six months from the date they became payable.
(b) The disputed statutory dues that have not been deposited on account
of appeal matters pending before the appropriate authorities are as
under:-
Financial Year Amount Particulars Authority
(Rs. In lacs)
2000-01 93.34 Customs Commissioner of
Customs, Mumbai
2007-08 105.00 Customs Commissioner of
Customs, Mumbai
2006-07 to 2009-10 404.57 Labour Cess Asst. Labour
Commissioner,
Madhya Pradesh
2006-07 to 2010-2011 44.11 Labour Cess Asst. Labour
Commissioner,
Madhya Pradesh
2006-07 to 2010-2011 587.00 Labour Cess Asst. Labour
Commissioner,
Chattisgarh
Total 1,234.02
(x) The Company has no accumulated losses as at the financial year end.
There were no cash losses incurred in the financial year or the
previous financial year.
(xi) As per the books and records maintained by the Company and
according to the information and explanations given to us, the Company
has not defaulted in repayment of dues loans to banks or financial
institutions.
(xii) The Company has not granted any loans and advances on the basis
of security by way of pledge of shares, debentures and other
securities.
(xiii) The Company is not a chit fund / nidhi /mutual benefit fund /
society. Hence, the provisions of any special statute as specified
under clause
(xiii) of Paragraph 4 of the Order are not applicable to the Company.
(xiv) In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in investments.
(xv) According to the information and explanations given to us, the
Company has given guarantees for loans taken by group companies from
banks or financial institutions, for which approvals from Central
Government are to be obtained, which in our opinion are generally not
prima-facie prejudicial to the interest of the Company.
(xvi) In our opinion and according to the information and explanations
given to us, the Company has applied the term loans for the purpose for
which they were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the Balance Sheet and cash flow of the
Company, the Company has not used the short term loans for long term
investments.
(xviii) The Company has not made any preferential allotment of shares
to parties/companies covered in the register maintained u/s 301 of the
Companies Act 1956
(xix) The Company has not issued any debentures.
(xx) The company has disclosed end use of money raised through a public
issue during the year along with the amount of unutilised funds, which
has been verified by us
(xxi) Based on information and explanations furnished by the
management, no frauds on or by the company were noticed or reported
during the year.
for M P Chitale & Co.
Chartered Accountants
ICAI FR No.101851W
Murtuza Vajihi
Partner
ICAI M. No. 112555
Mumbai, May 10, 2011