Mar 31, 2023
ENGINEERS INDIA LIMITEDReport on the Audit of Standalone Financial Statements
Opinion
We have audited the accompanying Standalone Financial Statements of ENGINEERS INDIA LIMITED ("the company"), which comprise the Balance Sheet as at 31 March 2023, the statement of Profit and Loss (including other comprehensive income), the Statement of Changes in Equity and the Cash Flow Statement for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as "the standalone financial statements").
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2023, its profit (including other comprehensive income), changes in equity and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit of standalone financial statements in accordance with the Standards on Auditing ("SAs") specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone financial statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India ("ICAI") together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We draw reference to Note 40 and Note 52 to the standalone financial statements concerning ongoing litigation as a going concern in respect of matters indicated therein involving a sum of '' 26,255.60 Lakhs (Commercial claims including employee''s claims). Any adverse impact of litigation is currently not ascertainable and therefore has been disclosed as contingent liability.
Our opinion is not modified in respect of the said matter.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report:
1. Estimation in relation to Percentage Completion Method
The Company recognizes revenue using the percentage of completion method. This method involves management estimates w.r.t cost and outcomes of long-term construction and service contracts. Revenue recognition in this regard is complex because it is based on the management estimates, assessments and judgments of:
⢠estimated contract revenue and estimated costs;
⢠the assessment of stage of completion of respective jobs;
⢠total efforts incurred till date and balance efforts required to complete the remaining Contract Performance obligations;
⢠changes in work scope;
⢠the probability of customer approval of variations and claims; and
⢠probability of levy for liquidated damages, Warranty/Guarantee and price reduction for delay or waiver/ reduction of such levies.
Audit procedures were carried out for verifying the revenue recognized from such contracts, and for that purpose, we:
⢠selected samples of contracts and evaluated the design of internal controls relating to recording of efforts incurred and estimation of efforts required to complete the performance obligations;
⢠assessed management''s estimates of total contract revenue, contract costs and recalculated the stage of completion based on actual costs incurred till date for a sample of contracts;
⢠selected a sample of contracts and performed a review of efforts incurred with estimated efforts to identify significant variations, if any and verify whether those variations have been considered while estimating the remaining efforts required to complete the respective contract;
⢠reviewed samples of contracts with unbilled revenues to identify possible delays in achieving milestones and change if any, required in estimated efforts to complete the remaining performance obligations by the company;
⢠performed analytical procedures and test of details for reasonableness of incurred and estimated efforts.
This has been considered as a key audit matter because of the involvement of management''s judgment and estimates in recognizing revenue from such contracts and potential variations that may have consequential impact on the profitability of the company.
2. Arbitration Proceedings in case of M/s Fernas Construction India Private Limited
In April, 2016, the company terminated an existing contract with M/s Fernas Construction India Private Limited ("contractor") consequent to the findings of an investigating agency that certificates submitted for qualifying the contract was bogus. Subsequently, the company is completing the contract at the risk and cost of contractor in terms of provision of the contract.
The matter has been referred to the Arbitral Tribunal wherein the contractor has filed its claim amounting to '' 40,960.75 Lakhs against the company. The company has filed its reply along with its counter claim and application to implead the parent company of the contractor, decisions on which is pending with the Arbitral Tribunal.
During the financial year 2018-19, a third-party creditor of the contractor has filed an application against the contractor with National Company Law Appellate Tribunal (NCLAT) under Insolvency and Bankruptcy Code, 2016 (IBC). Interim Resolution Professional (IRP) has been appointed and hence arbitration proceedings have been stayed sine die.
EIL has filed its claim against the contractor with the IRP. Hon''ble Supreme Court, on the application of the contractor has stayed the Resolution proceedings. The company has approached Arbitral Tribunal and NCLT for revival of counter claims wherein the company has been directed to approach the appropriate forum and accordingly company has filed an impleadment application before the Hon''ble Supreme Court. Refer Note 51 to the standalone financial statements.
This has been considered as a key audit matter given the uncertain outcome of legal proceedings/arbitral proceedings and the involvement of management''s judgement and estimates in relation to the same and any variation may have consequential impact on the profitability of the company.
The status of such job has been reviewed on regular basis. Also outcome of the legal proceedings was reviewed time to time. Based on the management''s assessment, the management has not considered any possible obligation on this account requiring future probable outflow of resources of the company and accordingly no provision has been made nor disclosed as Contingent Liability in the standalone financial statements of the company.
Information Other than the Standalone Financial Statements and Auditor''s Report Thereon
The Company''s Board of Directors is responsible for the preparation of other information. The other information comprises the Management Discussion and Analysis, Director''s Report including annexures to Director''s Report, Business Responsibility Report, Corporate Governance, Ten years'' Performance at a Glance and Chairman''s Statement included in the Annual Report of the company, but does not include the standalone financial statements and our auditor''s report thereon. The Annual Report is expected to be made available to us after the date of this auditor''s report.
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 identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of audit, or otherwise appears to be materially misstated.
On reading the Annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and take necessary actions as per applicable laws and regulations.
Responsibilities of Management and those Charged with Governance for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance (including other comprehensive income), changes in equity and cash flows of the company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, Management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone Financial Statements.
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 financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of Accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.
⢠Conclude on the appropriateness of Management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditor''s Report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order"), issued by the Central Government of India in terms of subsection (11) of section 143 of the Act, we give in the "Annexure A", a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. The Comptroller and Auditor General of India has issued Directions indicating the areas to be examined in terms of sub section (5) of section 143 of the Act, compliance of which are set out in "Annexure B".
3. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Statement of Changes in Equity and the 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 Indian Accounting Standards specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) under Section 133 of the Act.
(e) As per notification number G.S.R. 463(E) dated 5 June, 2015 issued by Ministry of Corporate Affairs, section 164(2) of the Act regarding the disqualifications of Directors is not applicable to the company, since it is a Government Company.
(f) With respect to the adequacy of the internal financial controls with reference to financial statements of the company and the operating effectiveness of such controls, refer to our separate Report in "Annexure C". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the company''s internal financial controls with reference to financial statements.
(g) With respect to the other matters to be included in the Auditor''s Report, as per notification number G.S.R. 463(E) dated 5 June, 2015 issued by Ministry of Corporate Affairs, section 197(16) of the Act regarding the Managerial remuneration is not applicable to the company, since it is a Government Company.
(h) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 (as amended), in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements -Refer Note 40 to the standalone 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 53 to the standalone financial statements; and
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the company.
Chartered Accountants (Firm''s Registration No. 000429N)
Sd/-
Nikhil Bhargava
(Partner)
Place: New Delhi M. No. 512853
Date: 26 May 2023 UDIN:23512853BGXOEH8794
Mar 31, 2022
Report on the Audit of Standalone Financial Statements Opinion
We have audited the accompanying Standalone Financial Statements of ENGINEERS INDIA LIMITED ("the company"), which comprise the Balance Sheet as at 31 March 2022, the statement of Profit and Loss (including other comprehensive income), the Statement of Changes in Equity and the Cash Flow Statement for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as "the standalone financial statements").
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2022, its profit (including other comprehensive income), changes in equity and its cash flows for the year ended on that date.
We conducted our audit of standalone financial statements in accordance with the Standards on Auditing ("SAs") specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone financial statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India ("ICAI") together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We draw reference to Note 40 and Note 52 to the standalone financial statements concerning ongoing litigation as a going concern in respect of matters indicated therein involving a sum of Rs.23,927.03 Lakhs (Commercial claims including employee''s claims). Any adverse impact of litigation is currently not ascertainable and therefore has been disclosed as contingent liability.
Our opinion is not modified in respect of the said matter.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current period. These matters were addressed in the context of our audit of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report:
1. Estimation in relation to Percentage Completion Method
The Company recognizes revenue using the percentage of completion method. This method involves management estimates w.r.t cost and outcomes of long-term construction and service contracts. Revenue recognition in this regard is complex because it is based on the management estimates, assessments and judgements of:
⢠estimated contract revenue and estimated costs;
⢠the assessment of stage of completion of respective jobs;
⢠total efforts incurred till date and balance efforts required to complete the remaining Contract Performance obligations;
⢠changes in work scope;
⢠the probability of customer approval of variations and claims; and
⢠probability of levy for liquidated damages, Warranty/Guarantee and price reduction for delay or waiver/ reduction of such levies.
Audit procedures were carried out for verifying the revenue recognized from such contracts, and for that purpose, we:
⢠selected samples of contracts and evaluated the design of internal controls relating to recording of efforts incurred and estimation of efforts required to complete the performance obligations;
⢠assessed management''s estimates of total contract revenue, contract costs and recalculated the stage of completion based on actual cost incurred till date for a sample of contracts;
⢠selected a sample of contracts and performed a review of efforts incurred with estimated efforts to identify significant variations, if any an verify whether those variations have been considered while estimating the remaining efforts required to complete the respective contract;
⢠reviewed samples of contracts with unbilled revenues to identify possible delays in achieving milestones and change if any, required in estimated efforts to complete the remaining performance obligations by the company;
⢠performed analytical procedures and test of details for reasonableness of incurred and estimated efforts.
This has been considered as a key audit matter because of the involvement of management''s judgement and estimates in recognizing revenue from such contracts and potential variations that may have consequential impact on the profitability of the company.
2. Arbitration Proceedings in case of M/s Fernas Construction India Private Limited
In April, 2016, the company terminated an existing contract with M/s Fernas Construction India Private Limited ("contractor") consequent to the findings of an investigating agency that certificates submitted for qualifying the contract was bogus. Subsequently, the company is completing the contract at the risk and cost of contractor in terms of provision of the contract.
The matter has been referred to the Arbitral Tribunal wherein the contractor has filed its claim amounting to '' 40,960.75 Lakhs against the company. The company has filed its reply along with its counter claim and application to implead the parent company of the contractor, decisions on which is pending with the Arbitral Tribunal.
During the financial year 2018-19, a third-party creditor of the contractor has filed an application against the contractor with National Company Law Appellate Tribunal (NCLAT) under Insolvency and Bankruptcy Code, 2016 (IBC). Interim Resolution Professional (IRP) has been appointed and hence arbitration proceedings have been stayed sine die.
EIL has filed its claim against the contractor with the IRP. Hon''ble Supreme Court, on the application of the contractor has stayed the Resolution proceedings. During the previous year, the company has approached Arbitral Tribunal and NCLT for revival of counter claims wherein the company has been directed to approach the appropriate forum and accordingly during the year company has filed an impleadment application before the Hon''ble Supreme Court. Refer Note 51 to the standalone financial statements.
This has been considered as a key audit matter given the uncertain outcome of legal proceedings/arbitral proceedings and the involvement of management''s judgement and estimates in relation to the same and any variation may have consequential impact on the profitability of the company.
The status of such job has been reviewed on regular basis. Also outcome of the legal proceedings was reviewed time to time. Based on the management''s assessment, the management has not considered any possible obligation on this account requiring future probable outflow of resources of the company and accordingly no provision has been made nor disclosed as Contingent Liability in the standalone financial statements of the company.
Information Other than the Standalone Financial Statements and Auditor''s Report Thereon
The Company''s Board of Directors is responsible for the preparation of other information. The other information comprises the Management Discussion and Analysis, Director''s Report including annexures to Director''s Report, Business Responsibility Report, Corporate Governance, Ten years'' Performance at a Glance and Chairman''s Statement included in the Annual Report of the company, but does not include the standalone financial statements and our auditor''s report thereon. The Annual Report is expected to be made available to us after the date of this auditor''s report.
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 identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of audit, or otherwise appears to be materially misstated.
On reading the Annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and take necessary actions as per applicable laws and regulations.
Responsibilities of Management and those Charged with Governance for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these
standalone financial statements that give a true and fair view of the financial position, financial performance (including other comprehensive income), changes in equity and cash flows of the company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, Management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Company''s financial reporting process.
Auditor''s Responsibilities for the Audit of the Standalone Financial Statements
Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone Financial Statements.
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 financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of Accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.
⢠Conclude on the appropriateness of Management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditor''s Report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should
not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order"), issued by the Central Government of India in terms of sub-section
(11) of section 143 of the Act, we give in the "Annexure A", a statement on the matters specified in paragraphs 3 and 4 of the Order, to the
extent applicable.
2. The Comptroller and Auditor General of India has issued Directions indicating the areas to be examined in terms of sub section (5) of section
143 of the Act, compliance of which are set out in "Annexure B".
3. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Statement of Changes in Equity and the 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 Indian Accounting Standards specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) under Section 133 of the Act.
(e) As per notification number G.S.R. 463(E) dated 5 June, 2015 issued by Ministry of Corporate Affairs, section 164(2) of the Act regarding the disqualifications of Directors is not applicable to the company, since it is a Government Company.
(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 C". Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the company''s internal financial controls over financial reporting.
(g) With respect to the other matters to be included in the Auditor''s Report, as per notification number G.S.R. 463(E) dated 5 June, 2015 issued by Ministry of Corporate Affairs, section 197(16) of the Act regarding the Managerial remuneration is not applicable to the company, since it is a Government Company.
(h) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014 (as amended), in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements - Refer Note 40 to the standalone 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 53 to the standalone financial statements; and
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the company.
Chartered Accountants (Firm''s Registration No. 000429N)
Sd/-
N. K. Bhargava
Place: New Delhi (Partner)
Date: 27 May 2022 M. No. 080624
UDIN: 22080624AJSLWD5810
Mar 31, 2018
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of ENGINEERS INDIA LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31 March, 2018, the Statement of Profit and Loss (including other comprehensive income), the Cash Flows Statement and the Statement of Changes in Equity for the year then ended and a summary of the significant accounting policies and other explanatory information (herein after referred to as âthe Standalone Financial Statementsâ).
Managementâs Responsibility for the Standalone 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 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) prescribed 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 the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit. While conducting 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 there under and the Order issued under section 143(11) of the Act.
We conducted our audit of standalone financial statements 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 financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone 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 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 the 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 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 financial statements.
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 31 March, 2018, its profit (including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Emphasis of Matter
We draw attention to the note no. 53 to the standalone financial statements of 31 March 2018, regarding claim of the contractor for Rs.40,960.75 lakhs consequent to termination of the contract. Management does not consider any possible obligation on this account requiring future probable outflow of resources.
Our opinion is not modified in respect of this matter.
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 âAnnexure Aâ, a statement on the matters specified in the paragraph 3 and 4 of the Order.
2. The C & AG of India has issued directions indicating the areas to be examined in terms of sub section (5) of section 143 of the companies act 2013, compliance of which are set out in âAnnexure Bâ
3. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Cash Flow Statement and the 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 Indian Accounting Standards specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on 31 March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 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 and the operating effectiveness of such controls, refer to our separate report in âAnnexure Câ. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the companyâs internal financial control over financial reporting. and
(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, 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 no. 40 to the standalone financial statements of 31 March 2018;
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 no. 55 to the standalone financial statements of 31 March 2018; and
iii. there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the company.
iv. the reporting on disclosure relating to Specified Bank Notes is not applicable for the year ended 31 March 2018.
Annexure A to Independent Auditorsâ Report
Referred to Paragraph 1 under the heading of âReport on Other Legal and Regulatory Requirementsâ of our report of even date
i. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years, which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In accordance with this programme, certain fixed assets were physically verified by the Management during the year and according to information and explanations given to us, no material discrepancies were noticed on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company except the following:
(Rs. in Lakhs)
PARTICULARS |
GROSS BLOCK |
NET BLOCK |
4 Flats at Naranpura, Ahemdabad |
10.31 |
3.54 |
Land at Memnagar, Ahemdabad |
69.21 |
54.69 |
2 Flats at Viman Nagar, Pune |
8.45 |
3.04 |
84 Flats at Gokuldham Goregaon, Mumbai |
238.19 |
38.09 |
6 Flats in Andheri East, Mumbai |
9.93 |
0.40 |
1 Floor at CBD Belapur, Navi Mumbai |
101.68 |
39.78 |
ii. The Company has carried out physical verification of inventory at the year end. In our opinion, frequency of physical verification is reasonable. As per the information and explanations given to us, the discrepancies noticed on physical verification of inventories as compared to book records were not material and the same have been dealt with in the books of account.
iii. In our opinion and according to the information and explanations given to us, the Company has not granted any loan, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Accordingly paragraphs 3 (iii) (a), (b) and (c) of the order are not applicable.
iv. In our opinion and according to the information and explanations given to us, the company has complied with the provisions of section 185 and 186 of the Act, with respect to the grant of loan, making investment, providing guarantees and security.
v. The Company has not accepted any deposits from the public within the meaning of Sections 73, 74, 75 and 76 of the Companies Act, 2013 and Rules framed there under. Accordingly paragraphs 3 (v) (a), (b) and (c) of the order are not applicable.
vi. As per the information and explanations given to us, the maintenance of cost records has not been prescribed by the Central Government under section 148(1) of the Companies Act, 2013 for services rendered by the company.
vii. (a) According to the information and explanations given to us and on the basis of our examination of the books of account of the company, amount deducted/accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Income Tax, GST, Sales Tax, Service Tax, Custom Duty, Value Added Tax, Cess and any other statutory dues have been regularly deposited during the year by the company with appropriate authorities. As explained to us, the company did not have any dues on account of employeesâ state insurance and duty of excise.
According to the information and explanation given to us and on the basis of our examination of the books of accounts, no undisputed amounts payable in respect of Provident Fund, Income Tax, GST, Sales Tax, Service Tax, Custom Duty, Value Added Tax, Cess and any other statutory dues were in arrears as at 31 March 2018 for a period more than six months from the date they became payable.
(b) According to the information and explanations given to us, the following dues of Income tax, sales tax, service tax have not been deposited by the company on account of disputes:
S. No. |
Name of Statue |
Nature of dues |
Forum where dispute is pending |
Period to which amount relates |
Amount including interest (Rs. in lakhs) |
1. |
Income Tax Act, 1961 |
TDS Under section 201(1) |
CIT (Appeals) |
F.Y. 2008-09 (A.Y. 2009-10) |
0.66 |
2. |
Income Tax Act, 1961 |
Income Tax |
Income Tax Appellate Tribunals |
F.Y. 2001-02 (A.Y. 2002-03) |
596.33 |
F.Y. 2003-04 (A.Y. 2004-05) |
203.87 |
||||
F.Y. 2010-11 (A.Y. 2011-12) |
93.51 |
||||
3. |
Sales Tax |
Entry Tax |
Sales Tax Tribunal Noida |
F.Y. 1999-2000 |
57.17 |
4. |
Sales Tax |
VAT |
Andhra Pradesh High Court |
July 2011 to March 2014 |
10358.77 |
5. |
Sales Tax |
VAT |
Karnataka High Court |
F.Y. 2009-10 |
3351.40 |
6. |
Sales Tax |
VAT |
Karnataka High Court |
F.Y. 2010-11 |
26149.08 |
viii. The company does not have any loan or borrowings from any financial institution, bank, government or debenture holders during the year. Accordingly, paragraph 3(viii) of the order is not applicable.
ix. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3 (ix) of the Order is not applicable.
x. According to the information and explanation given to us by the management and based on audit procedures performed, no material 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 give to us and based on our examination of the records of the Company, the Company has paid/provided managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii. In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the standalone financial statements as required by the applicable accounting standards.
xiv. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, paragraph 3(xiv) of the Order is not applicable.
xv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with them. Accordingly, paragraph 3(xv) of the Order is not applicable.
xvi. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
For Arun K Agarwal & Associates
Chartered Accountants
(Firmâs Registration No. 003917N)
Sd/-
Arun Agarwal
Place: New Delhi (Partner)
Date: 25 May 2018 M. No. 082899
Mar 31, 2017
Report on the Standalone Indian Accounting Standards (Ind AS) Financial Statements
We have audited the accompanying standalone Ind AS financial statements of ENGINEERS INDIA LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31 March, 2017, the Statement of Profit and Loss (including other comprehensive income), the Cash Flows Statement and the statement of changes in equity for the year then ended and a summary of the significant accounting policies and other explanatory information (herein after referred to as âStandalone Ind AS Financial Statementsâ).
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 and presentation 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 the Indian Accounting Standards (Ind AS) specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) under Section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit. While conducting 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 there under.
We conducted our audit of standalone Ind AS financial statements 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.
An audit involves performing procedures to obtain audit evidence about the amounts and the 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 the 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 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 of the Company as at 31 March, 2017, and its profit (including other comprehensive income), its cash flows and the changes in equity for the year ended on that date.
Emphasis of Matter
We draw attention to the note no. 54 to the standalone Ind AS financial statements of 31 March 2017, regarding claim of the contractor for Rs.40,757 lakhs consequent to termination of the contract. Management does not consider any possible obligation on this account requiring future probable outflow of resources.
Our opinion is not modified in respect of this matter.
Other Matters
The comparative financial information of the Company for the year ended 31 March 2016 and the transition date opening balance sheet as at 01 April 2015 included in these standalone Ind AS financial statements, are based on the previously issued statutory financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 (as amended) for the year ended 31 March 2016 which were audited by us, on which we have expressed an unmodified opinion dated 25 May 2016 and for the year ended 31 March 2015 which were audited by other auditor, on which they have expressed an unmodified opinion dated 27 May 2015, respectively. The adjustments to those financial statements for the differences in accounting principles adopted by the Company on transition to the Ind AS have been audited by us, on which we have expressed an unmodified opinion vide our report dated 22 May 2017. Our opinion is not modified in respect of this matter.
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 Subsection (11) of section 143 of the Act, we give in the âAnnexure Aâ, a statement on the matters specified in the paragraph 3 and 4 of the Order.
2. The C & AG of India has issued directions indicating the areas to be examined in terms of sub section (5) of section 143 of the companies act 2013, compliance of which are set out in âAnnexure Bâ
3. As required by Section 143 (3) of the Act, we report that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
(c) The Balance Sheet, the Statement of Profit and Loss (including other comprehensive income), the Cash Flow Statement and the 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 Indian Accounting Standards specified in the Companies (Indian Accounting Standards) Rules, 2015 (as amended) under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on 31 March, 2017 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 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 Câ; and
(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 no. 40 to the standalone Ind AS financial statements of 31 March 2017;
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 no. 53 to the standalone Ind AS financial statements of 31 March 2017;
iii. there has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company; and
iv. the Company has provided requisite disclosures in note no. 16 to the financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8 November, 2016 to 30 December, 2016. Based on audit procedures and relying on the management representation, we report that the disclosures are in accordance with books of account maintained by the Company and as produced to us by the Management.
Annexure A to Independent Auditorsâ Report
Referred to Paragraph 1 under the heading of âReport on Other Legal and Regulatory Requirementsâ of our report of even date
i. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years. In accordance with this programme, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company except incase of following:
(Amount in Lakhs)
PARTICULARS |
GROSS BLOCK |
NET BLOCK |
4 Flats at Naranpura, Ahemdabad |
10.31 |
3.79 |
Land at Memnagar, Ahemdabad |
69.21 |
56.28 |
2 Floors at Race Course Road, Vadodara |
204.02 |
158.75 |
2 Flats at Viman Nagar, Pune |
8.45 |
3.25 |
84 Flats at Gokuldham Goregaon, Mumbai |
238.19 |
43.81 |
6 Flats in Andheri East, Mumbai |
9.93 |
0.64 |
1 Floor at CBD Belapur, Navi Mumbai |
101.68 |
42.23 |
ii. The Company has carried out a physical verification of inventory at the year end. In our opinion, frequency of physical verification is reasonable. As per the information and explanations given to us, the discrepancies noticed on physical verification of inventories as compared to book records were not material and the same have been dealt with in the books of account.
iii. In our opinion and according to the information and explanations given to us, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Accordingly paragraphs 3 (iii) (a), (b) and (c) of the order are not applicable.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.
v. The Company has not accepted any deposits from the public within the meaning of Sections 73, 74, 75 and 76 of the Companies Act, 2013 and Rules framed there under.
vi. As per the information and explanations given to us, the maintenance of cost records has not been prescribed by the Central Government under section 148(1) of the Companies Act, 2013 for services rendered by the Company.
vii. (a) According to the information and explanations given to us and on the basis of our examination of the books of account of the Company, amount deducted/accrued in the books of account in respect of undisputed statutory dues including Provident Fund, Income Tax, Sales tax, Service Tax, custom duty, value added tax, cess and any other statutory dues have been regularly deposited during the year by the Company with appropriate authorities. As explained to us, the Company did not have any dues on account of employeesâ state insurance and duty of excise.
According to the information and explanation given to us and on the basis of our examination of the books of accounts, no undisputed amounts payable in respect of Provident Fund, Income Tax, Sales tax, Service Tax, custom duty, value added tax, cess and any other statutory dues were in arrears as at 31 March 2017 for a period more than six months from the date they became payable.
(b) According to the information and explanations given to us, the following dues of Income tax, sales tax, service tax have not been deposited by the Company on account of disputes:
Sl. No. |
Name of Statue |
Nature of dues |
Forum where dispute is pending |
Period to which amount relates |
Amount (Rs. in lakhs) |
1. |
Income Tax Act, 1961 |
Income Tax |
CIT (Appeals) |
F.Y. 2012-13 (A.Y. 2013-14) |
89.56 |
F.Y. 2013-14 (A.Y. 2014-15) |
74.65 |
2. |
Income Tax Act, 1961 |
TDS Under section 201(1) |
CIT (Appeals) |
F.Y. 2008-09 (A.Y. 2009-10) |
0.32 |
3. |
Income Tax Act, 1961 |
Income Tax |
Income Tax Appellate Tribunals |
F.Y. 2001-02 (A.Y. 2002-03) |
204.22 |
F.Y. 2003-04 (A.Y. 2004-05) |
76.07 |
||||
F.Y. 2010-11 (A.Y. 2011-12) |
50.82 |
||||
F.Y. 2011-12 (A.Y. 2012-13) |
42.72 |
||||
4. |
Sales Tax |
Entry Tax |
Sales Tax Tribunal Noida |
F.Y. 1999-00 |
13.70 |
5. |
Sales Tax |
VAT |
Andhra Pradesh High Court |
July 2011 to March 2014 |
6999.17 |
6. |
Sales Tax |
VAT |
Karnataka High Court |
F.Y. 2009-10 |
2955.19 |
7. |
Sales Tax |
VAT |
Karnataka High Court |
F.Y. 2010-11 |
23952.56 |
viii. The Company does not have any loan or borrowings from any financial institution, bank, government or debenture holders during the year. Accordingly, paragraph 3(viii) of the order is not applicable.
ix. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3 (ix) of the Order is not applicable.
x. According to the information and explanation given to us by the management and based on our examination of the records of the Company, no material 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 give to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii. In our opinion and according to the information and explanations given to us, the Company is not a nidhi Company. Accordingly, paragraph 3(xii) of the Order is not applicable.
xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the Ind AS financial statements as required by the applicable accounting standards.
xiv. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
xv. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
xvi. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
For Arun K Agarwal & Associates
Chartered Accountants
(Firmâs Registration No. 003917N)
Sd/-
Rajesh Surolia
Place: New Delhi (Partner)
Date: 22 May 2017 M. No. 088008
Mar 31, 2016
We have audited the accompanying standalone financial statements of
ENGINEERS INDIA LIMITED ("the Company"), which comprise the Balance
Sheet as at 31 March, 2016, the Statement of Profit and Loss and the
Cash Flow Statement for the year then ended, and a summary of the
significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone 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 and presentation 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 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. While conducting 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 there
under.
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 the 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 the accounting policies used and the reasonableness
of the accounting estimates made by the Company''s Directors, as well as
evaluating the overall presentation of the 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 financial
statements.
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 31 March, 2016, and its profit and its cash flows for the year ended
on that date.
Emphasis of Matter
We draw attention to the note no. 2.47 to the standalone financial
statements for the year ended 31 March 2016, regarding:
(a) fraud committed by M/s Fernas Construction India Pvt. Ltd. (''the
Contractor'') by submitting bogus completion certificate. Further, the
employees and officers of the Company in connivance with the contractor
relaxed the bid qualification criteria to enable the contractor to
qualify and beg the tender/contract worth Rs.180000 lakhs from a client
for whom the Company is a consultant. The management does not envisage
any financial liability in this regard.
(b) fraud committed by M/s Fernas Construction India Pvt. Ltd. (''the
Contractor'') by submitting bogus completion certificate for qualifying
in the bid criteria and beg the tender/contract of approximate Rs.27200
lakhs. The Company has terminated the contract. The Company has
estimated additional expenditure of Rs.3167 lakhs to complete the job,
which has been accounted for as per accounting standard (ASÂ7
''Accounting for Construction Contracts''). Subsequent to termination of
contract, the contractor raised the claim against the Company.
Management does not consider any possible obligation on this account
requiring future probable outflow of resources.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. 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, we give in the "Annexure A", a
statement on the matters specified in the paragraph 3 and 4 of the
Order.
2. The C&AG of India has issued directions indicating the areas to be
examined in terms of sub section (5) of section 143 of the Companies
Act 2013, compliance of which are set out in "Annexure B"
3. 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, 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 the written representations received from the
Directors as on 31 March, 2016 taken on record by the Board of
Directors, none of the Directors is disqualified as on 31 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 C"; and
(g) With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. the Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer note no. 2.18
to the 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 no.
2.45 to the financial statements;
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure A to Independent Auditors'' Report
Referred to Paragraph 1 under the heading of "Report on Other Legal and
Regulatory Requirements" of our report of even date
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
(b) The Company has a regular programme of physical verification of its
fixed assets by which fixed assets are verified in a phased manner over
a period of three years. In accordance with this programme, certain
fixed assets were verified during the year and no material
discrepancies were noticed on such verification. In our opinion, this
periodicity of physical verification is reasonable having regard to the
size of the Company and the nature of its assets.
(c) According to the information and explanations given to us and on
the basis of our examination of the records of the Company, the title
deeds of immovable properties are held in the name of the Company.
(ii) (a) The Company has carried out a physical verification of
inventory at the year end. In our opinion, frequency of physical
verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and nature of its business.
(c) On the basis of our examination of the inventory records, in our
opinion, the Company is maintaining proper records of inventory.
Further, as per the information and explanations given to us, the
discrepancies noticed on physical verification of inventories as
compared to book records were not material and the same have been dealt
with in the books of account.
(iii) In our opinion and according to the information and explanations
given to us, the Company has not granted any loans, secured or
unsecured to companies, firms or other parties covered in the register
maintained under section 189 of the Companies Act, 2013. Accordingly
paragraphs 3 (iii) (a), (b) and (c) of the order are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, the Company has complied with the provisions of section
185 and 186 of the Act, with respect to the loans and investments made.
(v) The Company has not accepted any deposits from the public.
(vi) As per the information and explanations given to us, the
maintenance of cost records has not been prescribed by the Central
Government under section 148(1) of the Companies Act, 2013 for services
rendered by the Company.
(vii) (a) According to the information and explanations given to us and
on the basis of our examination of the books of account of the Company,
amount deducted/accrued in the books of account in respect of
undisputed statutory dues including Provident Fund, Income Tax, Sales
tax, Service Tax, Custom Duty, Value Added Tax, Cess and any other
statutory dues have been regularly deposited during the year by the
Company with appropriate authorities. As explained to us, the Company
did not have any dues on account of employees'' state insurance and duty
of excise.
According to the information and explanation given to us and on the
basis of our examination of the books of accounts, no undisputed
amounts payable in respect of Provident Fund, Income Tax, Sales tax,
Service Tax, Custom Duty, Value Added Tax, Cess and any other statutory
dues were in arrears as at 31 March 2016 for a period more than six
months from the date they became payable.
(b) According to the information and explanations given to us, the
following dues of Income tax, sales tax, service tax have not been
deposited by the Company on account of disputes:
Sl. Name of Statue Nature of dues Forum where dispute
No. is pending
1. Income Tax Act, 1961 Income Tax CIT (Appeals)
2. Income Tax Act, 1961 TDS Under section
201(1) CIT (Appeals)
3. Income Tax Act, 1961 Interest Supreme Court
4. Income Tax Act, 1961 Income Tax Appellate Tribunals
5. Finance Act, 1994 Service Tax CESTAT
and Service Tax Laws
6. Sales Tax Sales Tax Sales Tax Tribunal
Agra
7. Sales Tax Entry Tax Sales Tax Tribunal
Agra
Name of Statute Period to which amount relates Amount
(Rs. in lakhs)
Income Tax Act, 1961 2011-12, 2012-13 133.04
Income Tax Act, 1961 2008-09 0.32
Income Tax Act, 1961 2005-06 105.37
Income Tax Act, 1961 2001-02, 2003-04,2009-10,2010-11 363.37
Finance Act, 1994 01.04.2002 to 17.04.2006 62.87
Sales Tax 1999-00, 2000-01 248.65
Sales Tax 1999-00 13.70
(viii) The Company does not have any loan or borrowings from any
financial institution, bank, government or debenture holders during the
year. Accordingly, paragraph 3(viii) of the order is not applicable.
(ix) The Company did not raise any money by way of initial public offer
or further public offer (including debt instruments) and term loans
during the year. Accordingly, paragraph 3 (ix) of the Order is not
applicable.
(x) According to the information and explanation given to us by the
management, a fraud was committed by employees and officers of the
Company by relaxing the bid qualification criteria in connivance with
the bidding contractor and helping him to qualify and beg the tenders/
contracts worth Rs.180000 lakhs from clients for whom company is a
consultant. The management does not envisage any financial liabilities
in this regard. (Refer note no. 2.47 (a) to the standalone financial
statements).
(xi) According to the information and explanations give to us and based
on our examination of the records of the Company, the Company has
paid/provided for managerial remuneration in accordance with the
requisite approvals mandated by the provisions of section 197 read with
Schedule V to the Act.
(xii) In our opinion and according to the information and explanations
given to us, the Company is not a nidhi company. Accordingly, paragraph
3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and
based on our examination of the records of the Company, transactions
with the related parties are in compliance with sections 177 and 188 of
the Act where applicable and details of such transactions have been
disclosed in the financial statements as required by the applicable
accounting standards.
(xiv) According to the information and explanations give to us and
based on our examination of the records of the Company, the Company has
not made any preferential allotment or private placement of shares or
fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us and
based on our examination of the records of the Company, the Company has
not entered into non-cash transactions with Directors or persons
connected with him. Accordingly, paragraph 3(xv) of the Order is not
applicable.
(xvi) The Company is not required to be registered under section 45-IA
of the Reserve Bank of India Act 1934.
For Arun K Agarwal & Associates
Chartered Accountants
(Firm''s Registration No. 003917N)
Arun Agarwal
Date: 25/05/2016 (Partner)
Place: Delhi M.No:082899
Mar 31, 2015
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of
Engineers India Limited ("the company"), which comprises the Balance
Sheet as at 31st March 2015, 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.
Management's Responsibility for the Standalone 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 the
maintenance of adequate accounting records in accordance with the
provision of the Act for safeguarding of the assets of the Company and
for preventing and detecting the 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 control,
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.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
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 there under.
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 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.
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.
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;
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
b) In the case of the Statement of Profit and Loss, 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.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order"), issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Companies Act 2013, we give in
the Annexure a statement on the matters specified in the paragraph 3
and 4 of the Order, to the extent applicable.
2. The C & AG of India has issued direction indicating the areas to be
examined in terms of sub section (5) of section 143 of the Companies
Act 2013, compliance of which are set out in Annexure II
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 and proper returns adequate for the purposes of our audit have
been received from the branches not visited by us
c) The Balance Sheet, the Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account and with the returns received from the branches not visited by
us.
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
as on 31 March, 2015, taken on record by the Board of Directors, none
of the directors is disqualified as on 31 March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements - Refer Notes No 2.17 to
the 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 No
2.43 to the financial statements;
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure I to the Independent Auditors' Report
The Annexure referred to in our Independent Auditors' Report to the
members of the Company on the standalone financial statements for the
year ended 31st March 2015, we report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of its fixed
assets.
(b) As explained to us, the fixed assets have been physically verified
by the management in phased manner so as to cover each assets at once
in three years which in our opinion is reasonable in regard to the size
of the Company and the nature of its business. As informed to us, no
material discrepancies were noticed on such verification.
(ii) (a) As explained to us, inventories have been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) We are of the opinion that, the Company is maintaining proper
records of inventory. Further as per information and explanations given
to us the discrepancies noticed on physical verification of inventories
as compared to book records were not material and the same have been
properly dealt with in the books of account.
(iii) According to the information and explanations given to us, the
company has not granted any loans, secured or unsecured to companies,
firms or other parties covered in the register maintained under section
189 of the Companies Act. Accordingly paragraphs (iii) (a) and (b) of
the order are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to purchase of inventory and fixed assets and for the sale of goods and
services. On the basis of our examination and according to information
and explanation given to us we have neither come across nor been
informed of any instance of major weakness in the internal control
system.
(v) The Company has not accepted any deposits from the public.
(vi) As per information and explanation provided to us, maintenance of
cost record has not been prescribed under section 148 of the act for
services rendered by the Company.
(vii) (a) As per information and explanations and records provided to
us, the Company has been generally regular in depositing undisputed
statutory dues including provident fund, income tax, sales tax, wealth
tax, service tax, duty of customs, value added tax, cess and other
statutory dues with the appropriate authorities. We are informed that
there are no undisputed statutory dues as at the year end outstanding
for a period of more than six months from the date they become payable.
(b) According to the information and explanations given to us and on
the basis of record verified by us , the following dues of income tax,
sales tax, service tax, wealth-tax, duty of customs, duty of excise,
value added tax and cess as at March 31, 2015 which have not been
deposited on account of a dispute:
S. Name of Statute Nature of Duty Forum where the
No. dispute is
pending
1 Income Tax Assessment u/s 143(3) of CIT (Appeals)
Act 1961 the Income Tax Act, 1961
2 Income Tax Demand of TDS u/s CIT (Appeals)
Act 1961 201(1)
3 Income Tax Interest on Self assessment Supreme Court
Act 1961 tax u/s 244A
4 Finance Act 1994 Demand of Service tax CESTAT
5 Sales Tax Act Demand of Sales Tax Sales Tax
tribunal Agra
6 Sales Tax Act Demand of Sales Tax Sales Tax
tribunal Agra
7 UP Sales Tax Act Sales Tax Sales Tax
tribunal Agra
S. Name of Statute Financial Year to Amount
No. which it pertains (Rs. in Lacs)
1 Income Tax Act 1961 2011-12 43.48
2 Income Tax Act 1961 2008-09 0.32
3 Income Tax Act 1961 2005-06 105.37
4 Finance Act 1994 2002-2006 62.87
5 Sales Tax Act 1999-2000 132.53
6 Sales Tax Act 2001-01 116.12
7 UP Sales Tax Act 1999-2000 13.70
(c) According to the information and explanations given to us, the
amount which were required to be transferred to the investor education
and protection fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made there under has been
transferred to such fund within time.
(viii) The Company does not have any accumulated losses as on 31.3.2015
and has not incurred cash losses during the year and in the immediately
preceding financial year.
(ix) The Company do not have any borrowing from any financial
institutions, banks or debenture holders.
(x) As per record and information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions except guarantee amounting to
Rs.200.00lacs issued on behalf of M/s TEIL Projects Ltd (a joint
venture company). In our opinion the terms and condition of the
guarantee are not prejudicial to the interest of the Company.
(xi) Company has not availed any term loan during the year.
(xii) 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. Verma & Associates
Chartered Accountants
FRN:501433C
(Mohender Gandhi)
Place: New Delhi (Partner)
Date: May 27, 2015 M. Number: 088396
Mar 31, 2014
1. We have audited the accompanying financial statements of ENGINEERS
INDIA LIMITED ("the CompanyÂ) which comprise the Balance Sheet as at
March 31st, 2014, 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 ActÂ) read with the General Circular
15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs
in respect of section 133 of the Companies Act, 2013. 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 Charted
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, but not for the purpose of expressing an opinion on the
effectiveness of the entity''s internal control. 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 of the 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 affair of the
Company as at March 31st 2014;
b) In the case of the Profit and Loss Account, of the profit of 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.
Report on Other legal and Regularity Requirement
7. As required by the Companies (Auditor''s Report) Order, 2003, as
amended by the Companies (Auditor''s report) (Amendment) Order 2004
("the OrderÂ), 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.
8. As required by Section 227(3) of the Act, 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 the law have
been kept by the Company so far as appears from our examination of
those books [and proper returns adequate for the purposes of our audit
have been received from sites not visited by us];
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 [and with the returns received from sites not visited by us];
d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of Section 211 of the Companies Act,1956 read with the
General Circular 15/2013 dtd September 13th , 2013 of the Ministry of
Corporate Affairs in respect of section 133 of the Companies Act 2013;
e) In terms of notification No. G.S.R. 829(E) dt. 21.10.2003, issued by
Ministry of Finance, Department of Company Affairs, Government of
India, clause(g) of sub-section(I) of Section 274 of the Companies
Act,1956 is not applicable to Government Company.
Annexure to the Auditors'' Report referred to in paragraph (7) of our
report of even date on the accounts of Engineers India Limited for the
year ended on 31st march, 2014
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, the fixed assets have been physically verified
by the management at phased manner so as to cover each asset at least
once in three years which, in our opinion is reasonable having regard
to the size of the company and the nature of its business. As informed
to us, no material discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, the disposal of assets during the year was not substantial
and would not have an impact on the operations of the company.
(ii) (a) As explained to us, the inventories have been physically
verified during the year by the management. In our opinion, the
frequency of verification is reasonable.
(b) In our opinion, and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) We are of the opinion that, the Company is maintaining proper
records of inventories. Further as per information and explanations
provided to us, the discrepancies noticed on physical verification of
inventories as compared to book records were not material and have been
properly dealt with in the books of account.
(iii) (a) According to the information and explanations given to us,
the Company has, during the year, not granted any loans, secured or
unsecured to companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956. Accordingly,
paragraphs 4 (iii) (a),(b), (c) and (d) of the Order, are not
applicable.
(b) According to the information and explanations given to us, the
Company has, during the year, not taken any loans, secured or unsecured
from companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956. Accordingly,
paragraphs 4 (iii)(e),(f), and (g) of the Order, are not applicable
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets for the sale of goods and
services. During the course of our audit, we have neither come across
nor have been informed of any instance of major weakness in the
aforesaid internal control system.
(v) (a) In our opinion and according to the information and
explanations given to us, there are no transactions that need to be
entered in to the register maintained under section 301 of the
companies Act, 1956.
(b) In our opinion and according to the information and explanations
given to us, as there are no transactions that need to be entered in to
the register maintained under section 301 of the companies Act, 1956,
paragraph 4 (v) (b) of the Order, is not applicable.
(vi) The company has not accepted any deposits from the public within
the meaning of section 58A, 58AA and other relevant provisions of the
Companies Act 1956 and the rules framed there under and hence
provisions of paragraph 4 (vi) of the Order, is not applicable.
(vii) In our opinion, the company has an adequate internal audit system
commensurate with the size of the company and nature of its business.
However in our opinion the procedure for IT system Audit at periodic
intervals from outside expert agency need to be strengthen. As per
information provided to us company has already initiated the process
and job of IT system Audit has already been entrusted to outside expert
agency.
(viii) As per information and record provided to us the company is
maintaining cost record for its two operating segments viz. Consultancy
and engineering projects and turnkey projects as prescribed under
section 209(1)(d) of the Companies Act 1956 depicting Cost and Revenue
for each job. 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 record under section 209(1)(d) of the Companies
Act 1956 and are of the opinion that prima facie, the prescribed
accounts and records have been made and maintained.
(ix) (a) As per information and explanation and record provided to us,
the company has been generally regular in depositing undisputed
statutory dues including provident fund, investor education and
protection fund, income tax, sales tax, wealth tax, service tax,
customs duty, excise duty, Cess and other applicable statutory dues
with the appropriate authorities during the year. We are informed that
there are no undisputed statutory dues as at the year end outstanding
for a period of more than 6 months from the date they become payable.
(b) According to the information and explanations given to us and based
on records of the company, there are no dues outstanding on account of
Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty and Cess on account of any dispute, other than the following-
Name of
Statute Nature of
Dues Amount Period to which Forum where the
(in
lakhs) amount relates dispute is pending
Uttar Pradesh
Sales Tax
Act Demand of
Sales Tax 13.70 1999-2000 Sales Tax Tribunal,
Agra
Service Tax
Act 1994 Demand of
Service Tax 62.87 2002-2006 Custom, Excise and
Service Tax
(including
penalty of
Rs 31.44) Appellate Tribunal
Income Tax
Act 1961 Demand of
TDS u/s
201(1) 0.32 2008-2009 Commissioner of
Income Tax (Appeals)
Income Tax
Act 1961 Demand of
Income Tax
U/s 143(3) 50.82 2010-2011 Commissioner of
Income Tax (Appeals)
Uttar Pradesh
Sales Tax
Act Demand of
Sales Tax 132.53 1999-2000 Commissioner
(Appeals) Mathura
116.12 2000-2001
(x) The Company does not have accumulated losses as at the year ended
March 31, 2014. Further, the Company has not incurred any cash losses
during the year ended March 31, 2014 and in the immediately preceding
financial year.
(xi) According to the records of the Company examined by us and on the
basis of information and explanations given to us, the Company has not
defaulted in repayment of dues to banks, Financial Institutions during
the year. The Company has not issued debentures during the year.
(xii) As the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities, paragraph 4(xii) of the Order is not applicable.
(xiii) As the Company is not a chit fund/nidhi/mutual benefit funds/
society to which the provisions of special statute relating to chit
fund are applicable, paragraph 4(xiii) of the Order is not applicable.
(xiv) As the Company is not dealing or trading in shares, securities,
debentures and other investments, paragraph 4 (xiv) of the Order is not
applicable.
(xv) As per record and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions during the year except
guarantees amounting to Rs 1000 lacs and Rs 200 lacs issued on behalf
of M/s Certification Engineers International Limited (a wholly owned
subsidiary company) and TEIL Projects Ltd (a joint venture company)
respectively. In our opinion the terms and conditions of the guarantee
are not prejudicial to the interest of the Company.
(xvi) According to the in information and explanations given to us, the
company has not raised any term loan during the year.
(xvii) According to the in information and explanations given to us,
and on an overall examination of the balance sheet of the company, we
report that short term funds have not been used to finance long term
investments.
(xviii) During the year the company has not made any preferential
allotment of shares to parties or companies covered in the Register
maintained under section 301 of the Companies Act, 1956.
(xix) The company has not issued any debentures during the year.
(xx) The company has not raised any money by way of public issue during
the year.
(xxi) To the best of our knowledge and belief and according to the
information and explanations given by the management, and the records
of the company examined by us , no fraud on or by the company was
noticed or reported during the year.
For M. Verma & Associates
Chartered Accountants
(Madan Verma)
(Partner)
Place: New Delhi
Membership no. 080939
Date : May 23, 2014 Firm Registration no. 501433C
Mar 31, 2013
1. We have audited the accompanying financial statements of ENGINEERS
INDIA 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.
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.
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 of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit 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.
7. 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.
8. As required by section 227(3) of the Act, 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 [and proper returns adequate for the purposes of our audit have
been received from sites not visited by us];
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 [and with the returns received from sites not visited by us];
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) In terms of notification No. G.S.R. 829(E) dt. 21.10.2003, issued by
Ministry of Finance, Department of Company Affairs, Government of
India, clause(g) of sub-section(1) of274 of the Companies Act,1956 is
not applicable to Government Company.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
ANNEXURE TO THE AUDITORS'' REPORT REFERRED TO IN PARAGRAPH (7) OF OUR
REPORT OF EVEN DATE ON THE ACCOUNTS OF ENGINEERS INDIA LIMITED FOR THE
YEAR ENDED ON 31st MARCH, 2013
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, the fixed assets have been physically verified
by the management at phased manner so as to cover each asset at least
once in a three years which, in our opinion is reasonable having regard
to the size of the company and the nature of its business. As informed
to us, no material discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, the disposal of assets during the year was not substantial
and would not have an impact on the operations of the company.
(ii) (a) As explained to us, the inventories have been physically
verified during the year by the management. In our opinion, the
frequency of verification is reasonable.
(b) In our opinion, and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) We are of the opinion that, the Company is maintaining proper
records of inventories. Further as per information and explanations
provided to us, the discrepancies noticed on physical verification of
inventories as compared to book records were not material and have been
properly dealt with in the books of account.
(iii) (a) According to the information and explanations given to us,
the Company has, during the year, not granted any loans, secured or
unsecured to companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act 1956. Accordingly,
paragraphs 4(iii) (a), (b), (c) and (d) of the Order, are not
applicable.
(b) According to the information and explanations given to us, the
Company has, during the year, not taken any loans, secured or unsecured
from companies, firms or other parties covered in the register
maintained under section 301 of the Companies act, 1956. Accordingly,
paragraphs 4 (iii) (e), (f) and (g) of the Order, are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business for the
purchase of inventory and fixed assets for the sale of goods &
services. During the course of our audit, we have neither come across
nor have been informed of any instance of major weakness in the
aforesaid internal control system.
(v) (a) In our opinion and according to the information and
explanations given to us, there are no transactions that need to be
entered into the register maintained under Section 301 of the Companies
Act, 1956.
(b) In our opinion and according to the information and explanations
given to us, as there are no transactions that need to be entered into
the Register maintained under Section 301 of the Companies Act, 1956,
paragraph 4(v)(b) of the Order is not applicable.
(vi) The Company has not accepted any deposits from the public within
the meaning of Section 58A, 58AA and other relevant provisions of the
Companies Act, 1956 and the rules framed there under and hence
provisions of paragraph 4(vi) of the Order is not applicable.
(vii) In our opinion, the Company has an adequate internal audit system
commensurate with the size of the Company and nature of its business.
However in our opinion the procedure for IT System Audit at periodic
intervals from outside expert agency need to be strengthen.
(viii) As per information and record provided to us the Company is
maintaining cost record for its two operating segments viz.
Consultancy and Engineering Projects and Turnkey projects as prescribed
under section 209 (1)(d) of the Companies Act 1956 depicting cost and
revenue for each job. We have broadly reviewed the books of accounts
maintained by the Company pursuant to the rules made by the Central
Government for the maintenance of cost record under section 209(1)(d)
of the Companies Act, 1956 and are of the opinion that prima facie, the
prescribed accounts and records have been made and maintained.
(ix) (a) As per information and explanation and record provided to us,
the company has been generally regular in depositing undisputed
statutory dues including Provident Fund, Investor Education and
Protection Fund, Income Tax, Sales Tax, Wealth Tax, Service Tax,
Customs Duty, Excise Duty, Cess and other applicable statutory dues
with the appropriate authorities during the year. We are informed that
there are no undisputed statutory dues as at the year end outstanding
for a period of more than 6 months from the date they become payable.
(b) According to the information and explanations given to us and based
on records of the company, there are no dues outstanding on account of
Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty, Excise
Duty and Cess on account of any dispute, other than the following-
Name of Nature of Amount (Rs.
Statute Dues in Lakhs
Uttar Pradesh Demand of 15.04
Sales Tax Sales Tax
Act
Service Tax Demand of 62.87
Act 1994 Service Tax
(including penalty
of Rs. 31.44)
Income Tax Demand of 0.32
Act 1961 TDS U/s 201(1)
Income Tax Demand of 32.26
Act 1961 Income Tax
U/s 143 (3)
Name of Statute Period to Forum where the
which amount dispute is pending
relates
Uttar Pradesh Sales
Tax Act 1999-2000 Matter referred back to
Assessing Authority Mathura by
Sales Tax Tribunal Mathura
Service Tax Act 1994 2002-2006 Custom Excise and Service Tax
Appellate Tribunal
Income Tax Act 1961 2008-2009 Commissioner of Income Tax
(Appeals)
Income Tax Act 1961 2009-2010 Commissioner of Income Tax
(Appeals)
(x) The Company does not have accumulated losses as at the year ended
March 31, 2013. Further, the Company has not incurred any cash losses
during the year ended March 31, 2013 and in the immediately preceding
financial year.
(xi) According to the records of the Company examined by us and on the
basis of information and explanations given to us, the Company has not
defaulted in repayment of dues to banks, financial institutions during
the year. The Company has not issued debentures during the year.
(xii) As the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities, paragraph 4(xii) of the Order is not applicable.
(xiii) As the Company is not a chit fund / nidhi / mutual benefit funds
/ society to which the provisions of special statute relating to chit
fund are applicable, paragraph 4(xiii) of the Order is not applicable.
(xiv) As the Company is not dealing or trading in shares, securities,
debentures and other investments, paragraph 4(xiv) of the Order is not
applicable.
(xv) As per record and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions during the year except a
guarantee amounting to Rs 1000.00 lacs issued on behalf of M/s
Certification Engineers International Limited a wholly owned subsidiary
company. In our opinion the terms and condition of the guarantee are
not prejudicial to the interest of the Company.
(xvi) According to the information and explanations given to us, the
company has not raised any term loan during the year.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that short term funds have not been used to finance long term
investments.
(xviii) During the year the company has not made any preferential
allotment of shares to parties or companies covered in the Register
maintained under section 301 of the Companies Act, 1956.
(xix) The company has not issued any debentures during the year.
(xx) The company has not raised any money by way of public issue during
the year.
(xxi) To the best of our knowledge and belief and according to the
information and explanations given by the management, and the records
of the company examined by us, no fraud on or by the company was
noticed or reported during the year.
For M. Verma & Associates
Chartered Accountants
(Mohender Gandhi)
Partner
Place : New Delhi Membership Number-088396
Date : May 28, 2013 Firm Registration No. 501433C
Mar 31, 2012
1. We have audited the attached Balance Sheet of Engineers India
Limited as at 31st March, 2012, the Profit & Loss Account and also the
Cash Flow Statement of the Company for the year ended on that date
annexed thereto. 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 the 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India, in terms of Sub- Section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 & 5 of the said
order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, 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, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section(3C) of section 211 of the
Companies Act, 1956;
e) In terms of notification No. G.S.R. 829 (E) dt. 21.10.2003, issued
by the Ministry of Finance, Department of Company Affairs, Government
of India, clause (g) of sub-section (I) of section 274 of the Companies
Act, 1956 is not applicable to Government Companies;
In our opinion and to the best of our information and according to the
explanation given to us, the said accounts read together with
significant Accounting Policies and Notes to Accounts (Notes No. 1 & 2)
give the information required by the Companies Act, 1956, 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 Balance Sheet, of the state of affairs of the Company
as at 31st March, 2012;
b) In the case of Profit & Loss Account, of the profit of the Company
for the year ended on that date; and
c) In the case of Cash Flow statement, of the cash flows for the year
ended on that date.
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As explained to us, the fixed assets have been physically verified
by the management at phased manner so as to cover each asset at least
once in three years which, in our opinion, is reasonable having regard
to the size of the company and the nature of its business. As informed
to us, no material discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, the disposal of assets during the year was not substantial
and would not have an impact on the operations of the company.
(ii) (a) As explained to us, the inventories have been physically
verified during the year by the management. In our opinion, the
frequency of verification is reasonable.
(b) In our opinion, and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) We are of the opinion that, the Company is maintaining proper
records of inventories. Further as per information and explanations
provided to us, the discrepancies noticed on physical verification of
inventories as compared to book records were not material and have been
properly dealt with in the books of account.
(iii) (a) According to the information and explanations given to us,
the Company has, during the year, not granted any loans, secured or
unsecured to companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act,1956. Accordingly,
paragraphs 4(iii) (a), (b), (c) and (d) of the Order, are not
applicable.
(b) According to the information and explanations given to us, the
Company has, during the year, not taken any loans, secured or unsecured
from companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956. Accordingly,
paragraphs 4 (iii) (e), (f) and (g) of the Order, are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business for the
purchase of inventory and fixed assets for the sale of goods &
services. During the course of our audit, we have neither come across
nor have been informed of any instance of major weakness in the
aforesaid internal control system.
(v ) (a) In our opinion and according to the information and
explanations given to us, there are no transactions that need to be
entered into the register maintained under Section 301 of the Companies
Act, 1956.
(b) In our opinion and according to the information and explanations
given to us, as there are no transactions that need to be entered into
the Register maintained under Section 301 of the Companies Act, 1956,
paragraph 4(v)(b) of the Order is not applicable.
(vi) The Company has not accepted any deposits from the public within
the meaning of Section 58A, 58AA and other relevant provisions of the
Companies Act, 1956 and the rules framed thereunder and hence
provisions of paragraph 4(vi) of the Order is not applicable.
(vii) In our opinion, the Company has an adequate internal audit system
commensurate with the size of the Company and nature of its business.
(viii) According to the information given to us by the Management the
Central Government has not prescribed the maintenance of cost records
under Section 209 (1) (d) of the Companies Act, 1956 for the activities
of the Company.
(ix) (a) As per information, explanation and record provided to us, the
Company has been generally regular in depositing undisputed statutory
dues including provident fund, investor education and protection fund,
income tax, sales tax, wealth tax, service tax, customs duty, excise
duty, cess and other applicable statutory dues with the appropriate
authorities during the year. We are informed that there are no
undisputed statutory dues as at the year end outstanding for a period
of more than 6 months from the date they become payable.
(b) According to the information and explanations given to us and based
on records of the company, there are no dues outstanding on account of
income tax, sales tax, wealth tax, service tax, custom duty, excise
duty and cess on account of any dispute, other than the following:-
Name of the Nature of Amount Period to
which Forum where the
statute Dues (In Lakhs) the amount
relates dispute is pending
Service Tax
Act Demand of
Service Tax 62.87 2002-2006 Commissioner
1994 (excluding
interest,
including of Central Excise
penalty of
Rs. 31.44
Lakhs) (Appeals)
Service Tax
Act Demand of 1.58 1997-1998 Commissioner of
1994 Service Tax Central Excise
(Appeals)
Income Tax
Act Demand of 2.55 2008-2009 Commissioner of
1961 TDS Income Tax (Appeals)
Income Tax
Act Demand of
Income 11.61 2008-2009 Commissioner of
1961 Tax U/s
143(3) Income Tax (Appeals)
Uttar
Pradesh Demand of 15.04 1999-2000 Sales Tax Tribunal,
Sales Tax
Act Sales Tax Agra
(x) The Company does not have accumulated losses as at the year ended
March 31, 2012. Further, the Company has not incurred any cash losses
during the year ended March 31, 2012 and in the immediately preceding
financial year.
(xi) According to the records of the Company examined by us and on the
basis of information and explanations given to us, the Company has not
defaulted in repayment of dues to banks, financial institutions during
the year. The Company has not issued debentures during the year.
(xii) As the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities, paragraph 4(xii) of the Order is not applicable.
(xiii) As the Company is not a chit fund / nidhi / mutual benefit funds
/ society to which the provisions of special statute relating to chit
fund are applicable, paragraph 4(xiii) of the Order is not applicable.
(xiv) As the Company is not dealing or trading in shares, securities,
debentures and other investments, paragraph 4(xiv) of the Order is not
applicable.
(xv) In our opinion and according to the information and explanations
given to us, the company has not given any guarantee for loans taken by
others from banks or financial institutions during the year.
(xvi) According to the information and explanations given to us, the
company has not raised any term loan during the year.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that short term funds have not been used to finance long term
investments.
(xviii) During the year the company has not made any preferential
allotment of shares to parties or companies covered in the Register
maintained under section 301 of the Companies Act, 1956.
(xix) The company has not issued any debentures during the year.
(xx) The company has not raised any money by way of public issue during
the year.
(xxi) To the best of our knowledge and belief and according to the
information and explanations given by the management, and the records
of the company examined by us, no fraud on or by the company was
noticed or reported during the year.
For M Verma & Associates,
Chartered Accountants
(Mohender Gandhi)
Partner
Membership No. 088396
Firm Registration No. 501433C
Place : New Delhi
Date : May 28, 2012
Mar 31, 2011
1. We have audited the attached Balance Sheet of Engineers India
Limited as at 31st March, 2011, the Profit & Loss Account and also the
Cash Flow Statement of the Company for the year ended on that date
annexed thereto. 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 the 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India, in terms of Sub- Section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 & 5 of the said
order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, 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, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section(3C) of section 211 of the
Companies Act, 1956;
e) In terms of notification No. G.S.R. 829 (E) dt. 21.10.2003, issued
by the Ministry of Finance, Department of Company Affairs, Government
of India, clause (g) of sub-section (I) of section 274 of the Companies
Act, 1956 is not applicable to Government Companies;
In our opinion and to the best of our information and according to the
explanation given to us, the said accounts read together with
significant Accounting Policies as per Schedule ÃIÃ and Notes as per
Schedule ÃJ Ã give the information required by the Companies Act, 1956,
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 Balance Sheet, of the state of affairs of the Company as at
31st March, 2011;
b) In the case of Profit & Loss Account, of the profit of the Company
for the year ended on that date; and
c) In the case of Cash Flow statement, of the cash flows for the year
ended on that date.
Annexure to the Auditors' Report
Referred to in Paragraph (3) of our Report of Even Date on the Accounts
of Engineers India Limited for the year ended on 31st March, 2011
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As informed to us, the fixed assets are verified by the management
in a phased manner so as to cover each asset at least once in three
years which, in our opinion, is reasonable having regard to the size of
the company and the nature of its business. As informed, no material
discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets have not been disposed
off by the company during the year.
(ii) (a) As explained to us, the inventories have been physically
verified during the year by the management. In our opinion, the
frequency of verification is reasonable.
(b) In our opinion, and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) On the basis of our examination of the record of inventories, we
are of the opinion that, the Company is maintaining proper records of
inventories. The discrepancies noticed on physical verification of
inventories as compared to book records were not material and have been
properly dealt with in the books of account.
(iii) (a) According to the information and explanations given to us,
the Company has, during the year, not granted any loans, secured or
unsecured to companies, firms or other parties covered in the register
maintained under section 301 of the Companies act,1956. Accordingly,
paragraphs 4(iii) (a), (b), (c) and (d) of the Order, are not
applicable.
(b) According to the information and explanations given to us, the
Company has, during the year, not taken any loans, secured or unsecured
from companies, firms or other parties covered in the register
maintained under section 301 of the Companies act, 1956. Accordingly,
paragraphs 4 (iii) (e), (f) and (g) of the Order, are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business for the
purchase of inventory and fixed assets for the sale of goods &
services. During the course of our audit, we have neither come across
nor have been informed of any instance of major weakness in the
aforesaid internal control system.
(v ) (a) In our opinion and according to the information and
explanations given to us, there are no transactions that need to be
entered into the register maintained under Section 301 of the Companies
Act, 1956.
(b) In our opinion and according to the information and explanations
given to us, as there are no transactions that need to be entered into
the Register maintained under Section 301 of the Companies Act, 1956,
paragraph 4(v)(b) of the Order is not applicable.
(vi) The Company has not accepted any deposits from the public within
the meaning of Section 58A, 58AA and other relevant provisions of the
Companies Act, 1956 and the rules framed thereunder and hence
provisions of paragraph 4(vi) of the Order is not applicable.
(vii) In our opinion, the Company has an adequate internal audit system
commensurate with the size of the Company and nature of its business.
(viii) According to the information given to us by the Management the
Central Government has not prescribed the maintenance of cost records
under Section 209 (1) (d) of the Companies Act, 1956 for the activities
of the Company.
(ix) (a) According the information and explanation given to us and the
records of the Company examined by us, the company has been generally
regular in depositing undisputed statutory dues including provident
fund, investor education and protection fund, income tax, sales tax,
wealth tax, service tax, customs duty, excise duty, cess and other
applicable statutory dues with the appropriate authorities during the
year. We are informed that there are no undisputed statutory dues as at
the year end outstanding for a period of more than 6 months from the
date they become payable.
(b) According to the information and explanations given to us and based
on records of the company, there are no dues in respect of income tax,
sales tax, wealth tax, service tax, custom duty, excise duty and cess
which have not been deposited on account of any dispute except the
following:-
Particulars Year Amount Forum
(Rs. In
Lakhs)
Service Tax 01.4.2002 to
17.4.2006 31.44 Commissioner of Central Excise
(Appeals)
Service Tax 1997-98 1.58 Commissioner of Central Excise
(Appeals)
Income Tax 2008-09 2.55 Commissioner of Income Tax (Appeals)
(x) The Company does not have accumulated losses as at the year ended
March 31, 2011. Further, the Company has not incurred any cash losses
during the year ended March 31, 2011 and in the immediately preceding
financial year.
(xi) According to the records of the Company examined by us and on the
information and explanations given to us, the Company has not defaulted
in repayment of dues to banks, financial institutions during the year.
The Company has not issued debentures during the year.
(xii) As the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities, paragraph 4(xii) of the Order is not applicable.
(xiii) As the Company is not a chit fund / nidhi / mutual benefit funds
/ society to which the provisions of special statute relating to chit
fund are applicable, paragraph 4(xiii) of the Order is not applicable.
(xiv) As the Company is not dealing or trading in shares, securities,
debentures and other investments, paragraph 4(xiv) of the Order is not
applicable.
(xv) In our opinion and according to the information and explanations
given to us, the company has not given any guarantee for loans taken by
others from banks or financial institutions during the year.
(xvi) According to the information and explanations given to us, the
company has not raised any term loan during the year.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that short term funds have not been used to finance long term
investments.
(xviii) During the year the company has not made any preferential
allotment of shares to parties or companies covered in the Register
maintained under section 301 of the Companies Act, 1956.
(xix) The company has not issued any debentures during the year.
(xx) The company has not raised any money by way of public issue during
the year.
(xxi) Based upon the audit procedures performed and information and
explanations given by the management, we report that, no fraud on or by
the company has been noticed or reported during the course of our audit
for the year ended March 31, 2011.
For JAGDISH CHAND & CO.
CHARTERED ACCOUNTANTS
( RAVI GOEL )
PARTNER
Place : New Delhi Membership No. 078748
Date : May 26, 2011 Firm Registration No. 000129N
Mar 31, 2010
1. We have audited the attached Balance Sheet of Engineers India
Limited as at 31st March, 2010, the Profit & Loss Account and also the
Cash Flow Statement of the Company for the year ended on that date
annexed thereto. These financial statements are the responsibility of
the Companys management. Our responsibility is to express an opinion
on these financial statements based on our audit.
2. We conducted our audit in accordance with the 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India, in terms of Sub-Section (4A) of
Section 227 of the Companies Act, 1956, we enclose in the Annexure a
statement on the matters specified in paragraphs 4 & 5 of the said
order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, 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 for our examination of those
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, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report comply with the Accounting
Standards referred to in sub-section(3C) of section 211 of the
Companies Act, 1956;
e) In terms of notification No. G.S.R. 829 (E) dt. 21.10.2003, issued
by the Ministry of Finance, Department of Company Affairs, Government
of India, clause (g) of sub-section (I) of section 274 of the Companies
Act, 1956 is not applicable to Government Companies;
In our opinion and to the best of our information and according to the
explanation given to us, the said accounts read together with
significant Accounting Policies as per Schedule `I and Notes as per
Schedule `J give the information required by the Companies Act, 1956,
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 Balance Sheet, of the state of affairs of the Company as at
31st March, 2010;
b) In the case of Profit & Loss Account, of the profit of the Company
for the year ended on that date; and
c) In the case of Cash Flow statement, of the cash flows for the year
ended on that date.
Annexure to the Auditors Report
Referred to in Paragraph (3) of our Report of Even Date on the Accounts
of Engineers India Limited for the year ended on 31st March, 2010
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of its fixed
assets.
(b) As informed to us, the fixed assets are verified by the management
in a phased manner so as to cover each asset at least once in three
years which, in our opinion, is reasonable having regard to the size of
the company and the nature of its business. As informed, no material
discrepancies were noticed on such verification.
(c) In our opinion and according to the information and explanations
given to us, a substantial part of fixed assets have not been disposed
off by the company during the year.
(ii) (a) As explained to us, the inventories have been physically
verified during the year by the management. In our opinion, the
frequency of verification is reasonable.
(b) In our opinion, and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) On the basis of our examination of the record of inventories, we
are of the opinion that, the Company is maintaining proper records of
inventories. The discrepancies noticed on physical verification of
inventories as compared to book records were not material and have been
properly dealt with in the books of account.
(iii) (a) According to the information and explanations given to us,
the Company has, during the year, not granted any loans, secured or
unsecured to companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act,1956. Accordingly,
paragraphs 4(iii) (a), (b), (c) and (d) of the Order, are not
applicable. (b) According to the information and explanations given to
us, the Company has, during the year, not taken any loans, secured or
unsecured from companies, firms or other parties covered in the
register maintained under section 301 of the Companies Act, 1956.
Accordingly, paragraphs 4 (iii) (e), (f) and (g) of the Order, are not
applicable. (iv) In our opinion and according to the information and
explanations given to us, there are adequate internal control systems
commensurate with the size of the company and the nature of its
business for the purchase of inventory and fixed assets for the sale of
goods & services. During the course of our audit, we have neither come
across nor have been informed of any instance of major weakness in the
aforesaid internal control system. (v) (a) In our opinion and
according to the information and explanations given to us, there are no
transactions that need to be entered into the register maintained under
Section 301 of the Companies Act, 1956. (b) In our opinion and
according to the information and explanations given to us, as there are
no transactions that need to be entered into the Register maintained
under Section 301 of the Companies Act, 1956, paragraph 4(v)(b) of the
Order is not applicable. (vi) The Company has not accepted any
deposits from the public within the meaning of Section 58A, 58AA and
other relevant provisions of the Companies Act, 1956 and the rules
framed thereunder and hence provisions of paragraph 4(vi) of the Order
is not applicable. (vii) In our opinion, the Company has an adequate
internal audit system commensurate with the size of the
Company and nature of its business. (viii) According to the
information given to us by the Management the Central Government has
not prescribed the maintenance of cost records under Section 209 (1)
(d) of the Companies Act, 1956 for the activities of the investor
education and protection fund, income tax, sales tax, wealth tax,
service tax, customs duty, excise duty, cess and other applicable
statutory dues with the appropriate authorities during the year. We are
informed that there are no undisputed statutory dues as at the year end
outstanding for a period of more than 6 months from the date they
become payable. (b) According to the information and explanations
given to us and based on records of the company, there are no dues in
respect of income tax, sales tax, wealth tax, service tax, custom duty,
excise duty and cess which have not been deposited on account of any
dispute except the following:-
Particulars Year Amount
(Rs. In Lakhs) Forum
Service Tax 01.4.2002 To 17.4.2006 31.44 Commissioner of
Central Excise
(Appeals)
Service Tax 1997-98 1.58 Commissioner of
Central Excise
(Appeals)
(x) The Company does not have accumulated losses as at the year ended
March 31, 2010. Further, the Company has not incurred any cash losses
during the year ended March 31, 2010 and in the immediately preceding
financial year.
(xi) According to the records of the Company examined by us and on the
information and explanations given to us, the Company has not defaulted
in repayment of dues to banks, financial institutions during the year.
The Company has not issued debentures during the year.
(xii) As the Company has not granted any loans and advances on the
basis of security by way of pledge of shares, debentures and other
securities, paragraph 4(xii) of the Order is not applicable.
(xiii) As the Company is not a chit fund / nidhi / mutual benefit funds
/ society to which the provisions of special statute relating to chit
fund are applicable, paragraph 4(xiii) of the Order is not applicable.
(xiv) As the Company is not dealing or trading in shares, securities,
debentures and other investments, paragraph 4(xiv) of the Order is not
applicable.
(xv) In our opinion and according to the information and explanations
given to us, the company has not given any guarantee for loans taken by
others from banks or financial institutions during the year.
(xvi) According to the information and explanations given to us, the
company has not raised any term loan during the year.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that short term funds have not been used to finance long term
investments.
(xviii)During the year the company has not made any preferential
allotment of shares to parties or companies covered in the Register
maintained under section 301 of the Companies Act, 1956.
(xix) The company has not issued any debentures during the year.
(xx) The company has not raised any money by way of public issue during
the year.
(xxi) Based upon the audit procedures performed and information and
explanations given by the management, we report that, no fraud on or by
the company has been noticed or reported during the course of our audit
for the year ended March 31, 2010.
For JAGDISH CHAND & CO.
CHARTERED ACCOUNTANTS
(JAGDISH CHAND GUPTA)
PARTNER
M.NO. 006107
Firm Registration No. 000129N
Place : New Delhi
Dated : May 27, 2010
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