Mar 31, 2015
We have audited the accompanying financial statements of Era Infra
Engineering Limited ("the Company") which comprise the Balance Sheet as
at 31st March, 2015, the Statement of Profit and Loss and the Cash Flow
Statement for the year than ended and a summary of significant
accounting policies and other explanatory statements.
Management's responsibility of financial statements
The Company's Board of Directors is responsible for the matters 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 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
matter's 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 standalone financial statements.
The procedures selected depend on the auditor's 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 Company's
preparation of the standalone financial statements that give true and
fair view in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by Company's Directors, as well as
evaluating the overall presentation of the financial statements.
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 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:
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2015;
ii. in the case of the Statement of Profit and Loss, of the Loss for
the year ended on that date; and
iii. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of Matters
Attention is drawn to the following:
(a) Note No 1(b)(vi) of Financial Statements regarding recognition of
revenue based on bills submitted to Joint Ventures/ Associates though
not accounted for by such Joint Ventures/ Associates.
(b) Note No 4.1 (vi) of the Notes to Accounts regarding perfection in
creation of security under Corporate Debt Restructuring (CDR) Mechanism
as stated in the said note.
(c) Note No 7 of Financial Statements regarding non ascertaining
complete particulars (including interest payable) of dues to micro,
small and medium enterprises under MSMED Act, 2006 and non provision of
liability, if any.
(d) Note No 9 of Financial Statements regarding noncompliance of
standard condition of CDR scheme in regarding sale of fixed assets
without prior approval of CDR EG.
(e) Note No 34 of the Notes to Accounts regarding pending application
seeking approval from Central Government for excess remuneration paid
to managerial personnel.
(f) Note No 35 of Financial Statements regarding classification of
Company as Non Performing Asset (NPA) by some lenders as stated in the
said note.
(g) Note No 36 of the Notes to Accounts regarding Company's exposure
(including the exposure through its subsidiaries) in the nature of
long-term investments of Rs, 108,744.47 lacs and loans & advances of Rs,
1,631.28 lacs in its subsidiaries viz. Era Infrastructure (India)
Limited and Rampur Highway Project Limited and Company's exposure
(including the exposure through its subsidiaries) in the nature of
long-term investments of Rs, 19,658.27 lacs and loans & advances of Rs,
(2,313.43 lacs) in its Associates viz. Gwalior Bypass Project Limited
and Hyderabad Ring Road Project Limited. On the basis of book value of
these Companies, there is a diminution in the value of Rs, 30,877.42 lacs
of these investments, which in the opinion of the management is
temporary in nature.
(h) No 37 of Financial Statements with regard to non-receipt of
Confirmation of balances from Debtors, Creditors, and Advances
paid/received, equipment finance lenders and Other Liabilities. These
amounts are subject to adjustments, if any, after reconciliation and
for identification of doubtful debts/ advances, which are not
ascertainable at this stage. Our opinion is not qualified in respect
of these matters.
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 Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by section 227(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 appears from our examination of those
books.
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.
d) In our opinion, the aforesaid 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 included in the Auditor's Report
and to our 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 23 of the
financial statements except in cases of pending under section 138 of
Negotiable Instruments Act wherein financial implication cannot be
ascertained and pending winding up petition.
ii. The company did not have any derivative contracts. In respect to
provisions for material foreseeable loses relating to long term
contracts, it is not possible to ascertain amount of foreseeable losses
due to nature of business and other various reasons such as extension
of period, quantity and also price escalation.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets are physically verified by the management
according to a phased programmer designed to cover all the items over a
period of three years, which in our opinion is reasonable having regard
to the size of the Company and nature of its assets. Pursuant to the
programmer, a portion of the fixed assets has been physically verified
by the management during the year and no material discrepancies between
the book records and the physical inventory have been noticed.
(ii) (a) As explained to us, the inventory has been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable in relation to the size of the company.
(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) In our opinion and according to the information and explanations
given to us and on the basis of our examination of the records of
inventory, the company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the books records were not material and have been properly dealt with
in the books of accounts.
(iii) (a) The Company has granted unsecured loan to its subsidiaries,
covered in the register maintained under section 189 of the Companies
Act, 2013 ('the Act')
(b) In respect of interest free loans granted to subsidiaries covered
under section 189 of the Act, the terms of arrangement for payment of
principal are payable on demand. Accordingly, paragraph 3(iii)(a) is
not applicable to the Company.
(c) In respect of the aforesaid advances, as per the information made
available to us, there is no overdue amount exceeding Rupees One Lac as
at year end.
(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 with regard
to purchases of inventory, fixed assets and with regard to execution of
contracts, sale of goods and services. However as informed to us there
is a continuous procedure to strengthen the same and the internal
controls over accounting of consumption, wastage, material
reconciliation need further strengthening.
(v) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from public to
which the directives issued by Reserve Bank of India and provisions of
sections 73 to 76 of the Companies Act, 2013, including rules framed
there under, apply. Further, no order has been passed by the Company
Law Board or National Company Law Tribunal or Reserve Bank of India or
any other tribunal.
(vi) We have broadly reviewed the books of accounts maintained by the
Company pursuant to the Rules made by the Central Government regarding
the maintenance of Cost Records under clause of sub section (1) of
section 148 of the Companies Act, 2013 and are of the opinion that
prima facie, the prescribed accounts and records have been maintained.
We have however not made a detailed examination of the records with a
view to determine whether they are accurate or complete.
(vii) (a) According to the information and explanations given to us and
according to the books and records produced before us, the company is
not regular in depositing with appropriate authorities undisputed
statutory dues including provident fund, employees' state insurance,
income-tax, sales-tax, wealth tax, service tax, duty of customs, duty
of excise, value added tax, cuss and any other statutory dues with the
appropriate authority, as applicable to it. The arrears of outstanding
statutory dues appearing as at year end for a period of more than six
months from the date they became payable are as under:
Particulars Amount (Rs, Lacs)
Liability Under various Acts
Income Tax Act 1,054.44
Royalty under various State Royalty Acts 127.49
Employees' Provident Fund Act 434.36
Employee State Insurance Act 2.24
Finance Act, 1994 (Service Tax) 665.39
VAT/WCT under various state Acts 90.68
(b) According to the information and explanations given to us and the
records of the Company examined by us, dues of sales tax, income tax,
customs duty, wealth tax, service tax, excise duty, value added tax and
cess which have not been deposited on account of disputes and the forum
where the dispute is pending, are as under:
Name of the
Dues/ Name Disputed
Amount Period to
which Forum Where
of the Statute (Rs,in Lacs) amount
relates Dispute is
Pending
Sales Tax /
Value Added Tax
West Bengal
VAT Demand 90.94 2004-05 &
2007-08 Commercial Tax
Officer, Kolkata
Delhi VAT 428.06 2009-10 DVAT Tribunal
UP VAT 2.31 2005-06 Tribunal
Punjab Value
Added Tax Demand 1.85 2011-12 Commissioner
Name of the
Dues/ Name Disputed Amount Period to which
of the Statute (Rs, in Lacs) amount relates
Customs/ Excise
Duty
Customs Act 26.21 2007-08
Customs Act 562.48 2012-13
Excise Act 11.39 2012-13 & 2013-14
Excise Act 13.88 2012-13 & 2013-14
central
Excise Act 2.93 2011-12 & 2012-13
Excise Act 0.34 2013-14
Excise Act 3.70 2013-14
Excise Act 3.58 2012-13
Excise Act 1.45 2013-14
Excise Act 7.31 2012-13
Service Tax
Finance Act,1994 3,244.64 2007-08
Finance Act,1994 310.34 2008-09
Finance Act,1994 450.37 2008-09
Finance Act,1994 116.53 2009-10 & 2010-11
Finance Act,1994 34.16 2010-11 & 2011-12
Finance Act,1994 2,090.52 2010-11 & 2011-12
TRIBUNAL AUTHORITY
Finance Act,1994 73.11 2006-07
Income Tax
Income Tax Act, 1961 120.73 2008-09
Income Tax Act, 1961 78.55 2009-10
Income Tax Act, 1961 46.68 2010-11
Income Tax Act, 1961
(TDS) 139.60 2011-12
Royalty
Madhya Pradesh
Royalty Demand 57.38 2008-09
Madhya Pradesh
Royalty Demand 100.00 2006-07
Madhya Pradesh
Royalty Demand 20.40 2006-07
Andhra Pardesh
Royalty Demand 28.04 2004-05
Labour Cess
The Building & other
Construction 85.61 2006-07
Workers (Regulation
of Employment &
Condition of Service)
Act, 1996
Name of the Forum Where Dispute is pending
Dues/ Name
of the Statute
Customs/ Excise
Duty
Customs Act Commissioner of Customs (port),Kolkate
Customs Act Commissioner of Customs,Mumbsi
Excise Act The Additional Commissioner of central
Excise,Meerut-1
Excise Act The Attritional Commissioner of Central
Excise,Meerut-1
Excise Act The Attitiona1 Commissioner of central
Excise,Meerut-1
Excise Act Asst. Commissioner of central Excise,
Dehradun
Excise Act Asst. Commissioner of central Excise,
Dehradun
Excise Act Jt. Commissioner of central Excise,
Dehradun
Excise Act Jt. Commissioner of central Excise,
Dehradun
Excise Act Jt. Commissioner of central Excise,
Dehradun
Service Tax
Finance Act,1994 The additional commissioner of
(Adjudication), central Excise,Delhi-1
CR Building IP Estate, New Delhi
Finance Act,1994 The additional commissioner of
(Adjudication), central Excise,Delhi-1
CR Building IP Estate, New Delhi
Finance Act,1994 The additional commissioner of
(Adjudication), central Excise,Delhi-1
CR Building IP Estate, New Delhi
Finance Act,1994 The additional commissioner of
(Adjudication), central Excise,Delhi-1
CR Building IP Estate, New Delhi
Finance Act,1994 The additional commissioner of
(Adjudication), central Excise,Delhi-1
CR Building IP Estate, New Delhi
Finance Act,1994 TRIBUNAL AUTHORITY
Finance Act,1994 TRIBUNAL AUTHORITY,R.K.PURAM
Income Tax
Income Tax Act, 1961 Commoner of income Tax (appeals)
Income Tax Act, 1961 Commoner of income Tax (appeals)
Income Tax Act, 1961 Commoner of income Tax (appeals)
Income Tax Act, 1961 Commoner of income Tax (appeals)
(TDS)
Royalty
Madhya Pradesh Revenue Board, Gwalior
Royalty Demand
Madhya Pradesh Revenue Board, Gwalior
Royalty Demand
Madhya Pradesh Revenue Board, Gwalior
Royalty Demand
Andhra Pardesh Commissioner, Ujjain
Royalty Demand
Labour Cess
The Building & other Hon'able Supreme court
Construction
Workers (Regulation
of Employment &
Condition of Service)
Act, 1996
(c) According to the information and explanations provided to us, the
company has transferred to investor education and protection fund in
accordance with the relevant provisions of the Companies Act, 1956 (1
of 1956) and rules made there under within the stipulated time.
(viii) The company does not have any accumulated losses as at the end
of the year. The Company has incurred cash losses during the current
year, and immediately preceding financial year.
(ix) In our opinion and according to information and explanations given
to us, the Company has defaulted in repayment of dues to financial
institutions, bank and debenture-holder during the year. The details of
defaults are given hereunder:
Particulars Amount (Rs, Lacs) Period of Default (Days)
Interest on
Bank Term Loan 4,531.41 01-60 Days
2,341.94 61-120 Days
268.42 121-180 Days
210.92 181-240 Days
210.73 241-300 Days
207.08 301-365 Days
Principal / Term
Loans from Banks 1,258.49 01-60 Days
6,750.00 301-365 Days
(x) According to the information and explanations given to us, the
company has given guarantees for loans taken by others from banks and
financial institutions. In our opinion and according to the information
and explanations given to us, the terms and conditions of such
guarantees to banks or financial institutions are not prejudicial to
the interest of the company.
(xi) According to the information and explanations given to us, the
term loans were applied overall for the purpose for which the loans
were obtained.
(xii) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
information and explanation 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 G. C. SHARDA & CO.
Chartered Accountants
FRN:500041N
CA. Pankaj Jain
Partner
M. No. : 505948
Place : Noida
Date : 30th May, 2015
Mar 31, 2014
We have audited the accompanying financial statements of Era Infra
Engineering Limited ("the Company") which comprise the Balance Sheet as
at 31st March, 2014, the Statement of Profit and Loss and the Cash Flow
Statement for the year than ended and a summary of significant
accounting policies and other explanatory statements.
Management''s responsibility of financial statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of financial position,
financial performance and cash flow of the Company in accordance with
the Accounting Standards notified under the Companies Act 1956 ("the
Act") 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 and in accordance with the accounting principles
generally accepted in India. This responsibility includes 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
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 the
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 amount and disclosures in the financial statements. The procedures
selected depend upon auditor''s judgment, including the assessment of
risks of material misstatement of the financial statements, whether due
to fraud or error. In making these 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 the Management,
as well as 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.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
ii. in the case of the Statement of Profit and Loss, of the Loss for
the year ended on that date; and
iii. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of Matters
Attention is drawn to the following:
(a) Note No 36 of the Notes to Accounts regarding Company''s exposure
(including the exposure through its subsidiaries) in the nature of
long-term investments and loans & advances of Rs.100,404.63 Lacs and
Rs.442.06 Lacs in its subsidiaries viz. Era Infrastructure (India)
Limited and Rampur Highway Project Limited and Company''s exposure
(including the exposure through its subsidiaries) in the nature of
long-term investments and loans & advances of Rs.19,658.27 Lacs and
Rs.5,008.60 Lacs in its Associates viz. Gwalior Bypass Project Limited
and Hyderabad Ring Road Project Limited. On the basis of book value of
these Companies, there is a diminution in the value of these
investments and advances, which in the opinion of the management is
temporary in nature.
(b) Note no 4.1(vi) of the Notes to Accounts regarding non creation of
security under Corporate Debt Restructuring (CDR) Mechanism as stated
in the said note.
(c) Note No 34of the Notes to Accounts regarding application seeking
approval from Central Government for excess remuneration paid to
managerial personnel. Our opinion is not qualified in respect of these
matters.
Report on other legal and regulatory requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 (''the
Order''), as amended, issued by the Central Government of India in terms
of Section (4A) of Section 227 of the Act, we give in the ''Annexure'' a
statement on the matters specified in paragraphs 4 or 5 of the Order.
2. 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 it appears from our examination of these
books;
c) the Balance Sheet, Statement of Profit and Loss and Cash Flow
statement dealt with this report are in agreement with the books of
account;
d) the Balance Sheet, Statement of Profit and Loss and Cash Flow
statement comply with Accounting Standards notified under the Act 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; and
e) on the basis of written representations received from the directors
as on 31st March, 2014, and taken on record by the Board of Directors,
none of the Directors are disqualified as on 31st March, 2014, from
being a Director in terms of clause (g) of sub-section (1) of Section
274 of the Companies Act, 1956.
ANNEXURE REFERRED TO IN 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 fixed assets are physically verified by the management
according to a phased programme designed to cover all the items over a
period of three years, which in our opinion is reasonable having regard
to the size of the Company and nature of its assets. Pursuant to the
programme, a portion of the fixed assets has been physically verified
by the management during the year and no material discrepancies between
the book records and the physical inventory have been noticed.
(c) During the year, the company has not disposed off any substantial
part of fixed assets.
(ii) (a) As explained to us, the inventory has been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable in relation to the size of the company.
(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) In our opinion and according to the information and explanations
given to us and on the basis of our examination of the records of
inventory, the company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the books records were not material and have been properly dealt with
in the books of accounts.
(iii) (a) According to the information and explanations given to us,
the company has not granted any loan secured or unsecured to the
parties covered in the register maintained under section 301 of the
Companies Act, 1956. Accordingly, the clauses 4 (iii) (a) to (d) of the
order are not applicable.
(b) The Company has taken interest free unsecured loans from two
parties covered in the register maintained under Section 301 of the
Companies Act, 1956. The maximum amount involved during the year was
Rs. 3,045 lacs and the year-end balance of the loans taken from such
parties was Rs. 3,045 lacs
(c) In our opinion, the terms and conditions on which loans have been
taken from parties listed in the register maintained under Section 301
of the Companies Act, 1956 are not, prima facie, prejudicial to the
interest of the Company.
(d) Since the aforesaid loans, as informed to us, are not repayable
during the tenure of the implementation of the CDR package, the payment
of principal amount is not yet due.
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 with regard
to purchases of inventory, fixed assets and with regard to execution of
contracts, sale of goods and services. However as informed to us there
is a continuous procedure to strengthen the same and the internal
controls over accounting of consumption, wastage, material
reconciliation need further strengthening.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts, arrangements or
transactions that need to be entered into the register maintained under
section 301 of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding rupees five lacs in respect of
any party during the year have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposit from public to
which provisions of sections 58A and 58AA or any other relevant
provisions of the Companies Act, 1956 and the rules framed thereunder,
no order has been passed by the Company Law Board or National Company
Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business; however the
scope needs to be enlarged.
(viii) We have broadly reviewed the books of accounts maintained by the
Company pursuant to the Rules made by the Central Government regarding
the maintenance of Cost Records under clause (d) of sub-section (1) of
Section 209 of the Act and are of the opinion that prima facie, the
prescribed accounts and records have been maintained. We have however
not made a detailed examination of the records with a view to determine
whether they are accurate or complete.
(ix) (a) Undisputed statutory dues including provident fund, investor
education and protection fund, employees'' state insurance, income tax,
sales-tax, wealth tax, service tax, customs duty, excise duty, cess,
majorly it has not been deposited with the appropriate authorities.
(b) According to the information and explanations given to us,
following undisputed amounts payable in respect of provident fund,
investor education and protection fund, employees'' state insurance,
income tax, sales tax, wealth tax, service tax, customs duty, excise
duty, cess and other undisputed statutory dues were outstanding, at the
year end, for a period of more than six months from the date they
became payable:
Particulars Amount (Rs. Lacs)
Liability Under various Acts
Income Tax Act 4,097.36
Royalty under various state royalty acts 123.74
Employees'' Provident Fund Act 391.96
Employee State Insurance Act 2.24
Finance Act, 1994 (Service Tax) 1,007.76
VAT/WCT under various state Acts 90.68
(c) According to the information and explanations given to us and the
records of the Company examined by us, dues of sales tax, income tax,
customs duty, wealth tax, service tax, excise duty and cess which have
not been deposited on account of disputes and the forum where the
dispute is pending , are as under:
Name of the Dues/ Name Disputed Amount Period to which Forum Where
of the Statute (Rs. in Lacs) amount relates Dispute is
Pending
Sales Tax
West Bengal VAT Demand 90.94 2004-05 & Commercial
2007-08 Tax Officer,
Kolkata
Delhi VAT 428.06 2009-10 DVAT Tribunal
UP VAT 2.31 2005-06 Tribunal
Punjab Value Added 1.85 2011-12 Commissioner
Tax Demand
Customs / Excise Duty
Customs Act 26.21 2007-08 Commissioner
of Customs
(Port),
Kolkata
Customs Act 597.48 2012-13 Commissione
of Customs,
Mumbai
Service Tax
Finance Act, 1994 73.11 2006-07 Commissioner
of Service
Tax,New Delhi
Finance Act, 1994 3,244.64 2006-07, Delhi High
2008-09 Court
& 2009-10
Finance Act, 1994 2,090.52 2009-10, CESTAT,
2010-11 New Delhi
& 2011-12
Income Tax
Income Tax Act, 1961 120.73 2008-09 CIT(Appeals)
Income Tax Act, 1961 78.55 2009-10 CIT(Appeals)
Income Tax Act, 1961 46.68 2010-11 CIT(Appeals)
Income Tax Act, 1961 (TDS) 139.60 2011-12 CIT(Appeals)
Royalty
Andhra Pradesh Royalty Demand 28.04 2004-05 Hon''ble High
Court of
AndhraPradesh
Madhya Pradesh Royalty Demand 57.38 2008-09 Revenue Board
Gwalior
Madhya Pradesh Royalty Demand 100.00 2006-07 Revenue Board
Gwalior
Labour Cess
The Building and Other 85.61 2000-07 Hon''ble
Construction Workers Supreme Court
(Regulation of Employment
and Condition of Service)
Act, 1996
Madhya Pradesh Royalty Demand 20.40 2006-07 Commissioner,
Ujjain
(x) The company does not have any accumulated losses as at the end of
the year. The Company has incurred cash losses during the current year,
while no cash loss has incurred in the immediately preceding financial
year.
(xi) In our opinion and according to information and explanations given
to us, the Company has defaulted in repayment of dues to financial
institutions, bank and debenture-holder during the year. The details of
defaults are given hereunder:
Particulars Amount (Rs. Lacs) Period of Default (Days)
Interest on Term Loans
from Banks* 3,895.54 1-60
735.82 61-120
Principal on Term Loans
from Banks* 4,637.00 1
Non Convertible Debentures
(interest)* 391.07 61-120
Non Convertible Debentures
(principal)* 2,000.00 61-120
External Commercial Borrowings
(interest)* 234.89 61-120
External Commercial Borrowings
(principal)* 1,989.99 61-120
Interest on Term Loans from Banks 445.11 1-60
124.37 61-120
128.16 121-180
121.53 181-240
8.54 241-300
0.64 301-350
Principal on Term Loans
from Banks 683.59 1-60
3,260.01 61-120
240.13 121-180
189.92 181-240
31.50 241-300
2.37 301-350
*However, as explained in Note 4.1 of financial statements the
Corporate Debt Restructuring Empowered Group approved a restructuring
package on 29th March, 2014 in terms of which the Existing loans were
restructured with effect from 1st July, 2013. As a consequence, there
are no overdue amounts outstanding towards interest and principal as at
year end.
(xii) According to the information and explanations given to us, the
company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the provisions of any special statute applicable
to Chit Fund, Nidhi or Mutual Benefit Fund/Society are not applicable
to the company.
(xiv) In our opinion and according to the information and explanations
given to us, the company is not dealing in or trading in shares,
securities, debentures and other investments, Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable in respect
of the company.
(xv) The company has given guarantees for loans taken by others from
banks and financial institutions. In our opinion and according to the
information and explanations given to us, the terms and conditions of
such guarantees to banks or financial institutions are not prejudicial
to the interest of the company.
(xvi) According to the information and explanations given to us, the
term loans were applied overall for the purpose for which the loans
were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, in our
opinion no funds raised on short-term basis have been used for
long-term investment.
(xviii) According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Companies Act, 1956.
(xix) According to the information and explanations given to us, no
debentures were issued during the period.
(xx) According to the information and explanations given to us, the
company had not raised any money by public issue during the year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
information and explanation 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 G. C. SHARDA & CO.
Chartered Accountants
FRN:500041N
CA. Pankaj Jain
Partner
Membership. No. : 505948
Place: Noida
Date : 30th May, 2014
Mar 31, 2013
Report on the financial statements
We have audited the accompanying financial statements of Era Infra
Engineering Limited ("the Company") which comprise the Balance Sheet as
at 31st March, 2013, the Statement of Profit and Loss and the Cash Flow
Statement for the year than ended and a summary of significant
accounting policies and other explanatory statements.
Management''s responsibility of financial statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of financial position,
financial performance and cash flow 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
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
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 the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
form material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amount and disclosures in the financial statements. The procedures
selected depend upon auditor''s judgment, including the assessment of
risks of material misstatement of the financial statements, whether due
to fraud or error. In making these 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 the Management,
as well as 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.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013;
ii. in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
iii. 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, 2003 (''the
Order'') , as amended, issued by the Central Government of India in
terms of Section (4A) of Section 227 of the Act, we give in the
''Annexure'' a statement on the matters specified in paragraphs 4 or 5 of
the Order.
2. 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 it appears from our examination of these
books;
c) the Balance Sheet, Statement of Profit and Loss and Cash Flow
statement dealt with this report are in agreement with the books of
account;
d) the Balance Sheet, Statement of Profit and Loss and Cash Flow
statement comply with Accounting Standards referred to in sub- section
(3C) of Section 211 of the Companies Act, 1956; and
e) on the basis of written representations received from the directors
as on 31st March, 2013, and taken on record by the Board of Directors,
none of the Directors are disqualified as on 31st March, 2013, from
being a Director in terms of clause (g) of sub-section (1) of Section
274 of the Companies Act, 1956.
ANNEXURE REFERRED TO IN 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 fixed assets are physically verified by the management
according to a phased programme designed to cover all the items over a
period of three years, which in our opinion is reasonable having regard
to the size of the Company and nature of its assets. Pursuant to the
programme, a portion of the fixed assets has been physically verified
by the management during the year and no material discrepancies between
the book records and the physical inventory have been noticed.
(c) During the year, the company has not disposed off any substantial
part of fixed assets.
(ii) (a) As explained to us, the inventory has been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable in relation to the size of the company.
(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) In our opinion and according to the information and explanations
given to us and on the basis of our examination of the records of
inventory, the company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the books records were not material and have been properly dealt with
in the books of accounts.
(iii) (a) According to the information and explanations given to us,
the company has granted unsecured loans to two parties covered in the
register maintained under section 301 of the Companies Act, 1956. The
party wise cumulative maximum amount involved during the year was Rs.
25.28 Lacs and the year-end balance of loans granted to such parties
was Rs. 25.28 Lacs.
(b) According to the information and explanations given to us , in our
opinion, the rate of interest and other terms and conditions on which
loans have been granted to companies covered in the register maintained
under section 301 of the Companies Act, 1956 are not, prima facie,
prejudicial to the interest of the Company.
(c) In our opinion and according to the information and explanations
given to us, the company is receiving the principal amounts as
stipulated and is receiving interest regularly.
(d) According to the information and explanations given to us, there is
no overdue amount of loans granted to companies, listed in the register
maintained under Section 301 of the Companies Act, 1956.
(e) According to the information and explanations given to us, the
company has not taken any loan, secured or unsecured, from companies,
firms or other parties covered in the register maintained under section
301 of the Companies Act, 1956. In view of the above, clause 4(iii) (e)
to (g) of the Order are not applicable in respect of the Company.
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 with regard
to purchases of inventory, fixed assets and with regard to execution of
contracts, sale of goods and services. However as informed to us there
is a continuous procedure to strengthen the same. During the course of
our audit, we have not observed any major weakness in internal controls
nor have any such weaknesses been brought to our notice.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts, arrangements or
transactions that need to be entered into the register maintained under
section 301 of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding rupees five lacs in respect of
any party during the year have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposit from public to
which provisions of sections 58A and 58AA or any other relevant
provisions of the Companies Act, 1956 and the rules framed there under
no order has been passed by the Company Law Board or National Company
Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) According to the information and explanations given to us, the
Central Government has not prescribed the maintenance of cost records
under section 209(1) (d) of the Companies Act, 1956 in respect of any
of activities of the company.
(ix) (a) Undisputed statutory dues including provident fund, investor
education and protection fund, employees'' state insurance, income tax,
sales-tax, wealth tax, service tax, customs duty, excise duty, cess
have been generally regularly deposited with the appropriate
authorities.
(b) Accordingly to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees'' state insurance, income tax,
sales tax, wealth tax, service tax, customs duty, excise duty, cess and
other undisputed statutory dues were outstanding, at the year end, for
a period of more than six months from the date they became payable.
(c) According to the information and explanations given to us and the
records of the Company examined by us, dues of sales tax, income tax,
customs duty, wealth tax, service tax, excise duty and cess which have
not been deposited on account of disputes and the forum where the
dispute is pending , are as under:
NAME OF THE DUES/ DISPUTED AMOUNT PERIOD TO WHICH FORUM WHERE DISPUTE
NAME OF THE
STATUTE ('' IN LACS) AMOUNT RELATES IS PENDING
SALES TAX
West Bengal VAT
Demand 90.94 2004-05 & Commercial Tax
Officer, Kolkata
2007-08
Delhi VAT 428.06 2009-10 DVAT Tribunal
UP VAT 2.31 2005-06 Tribunal
CUSTOMS/ EXCISE DUTY
Customs Act 26.21 2007-08 Commissioner of
Customs (Port),
Kolkata
Customs Act 597.48 2012-13 Commissioner of
Customs, Mumbai
SERVICE TAX
Finance Act, 1994 73.11 2006-07 Commissioner Of
Service Tax,
New Delhi
Finance Act, 1994 3,244.99 2006-07 Delhi High Court
2008-09 & 2009-10
INCOME TAX
Income Tax Act,
1961 120.73 2008-09 Deputy Commissioner
of Income Tax
Income Tax Act,
1961 78.55 2009-10 Deputy Commissioner
of Income Tax
Income Tax Act,
1961 100.38 2010-11 Deputy Commissioner
of Income Tax
LABOUR CESS
The Building and
Other 85.61 2000-07 Honourable Supreme
Court
Construction
Workers
(Regulation of
Employment and
Condition of
Service) Act, 1996
(x) The company does not have any accumulated losses as at the end of
the year. The Company has not incurred any cash losses during the
current and in the immediately preceding financial year.
(xi) In our opinion and according to information and explanations given
to us, the Company has not defaulted in repayment of dues to any
financial institution, bank or debenture-holder during the year.
(xii) According to the information and explanations given to us, the
company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the provisions of any special statute applicable
to Chit Fund, Nidhi or Mutual Benefit Fund / Society are not applicable
to the company.
(xiv) In our opinion and according to the information and explanations
given to us , the company is not dealing in or trading in shares,
securities, debentures and other investments, Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable in respect
of the company.
(xv) The company has given guarantees for loans taken by others from
banks and financial institutions. In our opinion and according to the
information and explanations given to us, the terms and conditions of
such guarantees to banks or financial institutions are not prejudicial
to the interest of the company.
(xvi) According to the information and explanations given to us, the
term loans were applied overall for the purpose for which the loans
were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, in our
opinion no funds raised on short-term basis have been used for
long-term investment.
(xviii) According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Companies Act, 1956.
(xix) According to the information and explanations given to us, the
company has created securities for the non- convertible debentures.
(xx) According to the information and explanations given to us, the
company had not raised any money by public issue during the year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
information and explanation 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 G. C. SHARDA & CO.
Chartered Accountants
FRN : 500041N
CA. Pankaj Jain
Partner
M. No. : 505948
Place : New Delhi
Date : May 30, 2013
Mar 31, 2012
1. We have audited the attached Balance Sheet of Era Infra Engineering
Limited as at 31st March, 2012 and also the Profit & Loss Account and
the Cash Flow Statement 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 auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall 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 (as
amended) issued by 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 and 5 of
the said Order.
4. Further to our comments in the annexure referred to above, we
report that:
i) 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;
ii) 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 ;
iii) The balance sheet, profit & loss account and cash flow statement
dealt with by this report are in agreement with the books of account ;
iv) In our opinion, the balance sheet, profit & loss account and cash
flow statement dealt with this report comply with the accounting
standards referred to in sub-section (3C) section 211 of the Companies
Act, 1956 ;
v) On the basis of the written representations received from the
directors, as on 31st March, 2012 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2012 from being appointed as a director in terms of clause
(g) of sub section (1) of section 274 of the Companies Act, 1956;
vi) In our opinion, and to the best of our information and according to
the explanations given to us, the said accounts read together with the
notes thereto give the information required by the Companies Act, 1956
in the manner so required and give a true and fair view in conformity
with 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 the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF ERA INFRA ENGINEERING LIMITED
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets are physically verified by the management
according to a phased programme designed to cover all the items over a
period of three years, which in our opinion is reasonable having regard
to the size of the Company and nature of its assets. Pursuant to the
programme, a portion of the fixed assets has been physically verified
by the management during the year and no material discrepancies between
the book records and the physical inventory have been noticed.
(c) During the year, the company has not disposed off any substantial
part of fixed assets.
(ii) (a) As explained to us, the inventory has been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable in relation to the size of the company.
(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) In our opinion and according to the information and explanations
given to us and on the basis of our examination of the records of
inventory, the company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the books records were not material and have been properly dealt with
in the books of accounts.
(iii) (a) According to the information and explanations given to us,
the company has granted unsecured loans to three parties covered in the
register maintained under section 301 of the Companies Act, 1956. The
party wise cumulative maximum amount involved during the year was Rs.
302.55 Lacs and the year-end balance of loans granted to such parties
was Rs. 18.35 Lacs.
(b) According to the information and explanations given to us , in our
opinion, the rate of interest and other terms and conditions on which
loans have been granted to companies covered in the register maintained
under section 301 of the Companies Act, 1956 are not, prima facie,
prejudicial to the interest of the Company.
(c) In our opinion and according to the information and explanations
given to us, the company is receiving the principal amounts as
stipulated and is receiving interest regularly.
(d) According to the information and explanations given to us, there
are no overdue amount of loans granted to companies, listed in the
register maintained under Section 301 of the Companies Act, 1956.
(e) According to the information and explanations given to us, the
company has not taken any loan, secured or unsecured, from companies,
firms or other parties covered in the register maintained under section
301 of the Companies Act, 1956. In view of the above, clause 4(iii) (e)
to (g) of the Order are not applicable in respect of the Company.
(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 with regard
to purchases of inventory, fixed assets and with regard to execution of
contracts, sale of goods and services. However as informed to us there
is a continuous procedure to strengthened the same. During the course
of our audit, we have not observed any major weakness in internal
controls nor have any such weaknesses been brought to our notice.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts, arrangements or
transactions that need to be entered into the register maintained under
section 301 of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding rupees five lacs in respect of
any party during the year have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposit from public to
which provisions of sections 58A and 58AA or any other relevant
provisions of the Companies Act, 1956 and the rules framed there under
no order has been passed by the Company Law Board or National Company
Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) According to the information and explanations given to us, the
Central Government has not prescribed the maintenance of cost records
under section 209(1) (d) of the Companies Act, 1956 in respect of any
of activities of the company.
(ix) (a) Undisputed statutory dues including provident fund, investor
education and protection fund, employees' state insurance, income tax,
sales-tax, wealth tax, service tax, customs duty, excise duty, cess
have been generally regularly deposited with the appropriate
authorities.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees' state insurance, income tax,
sales tax, wealth tax, service tax, customs duty, excise duty, cess and
other undisputed statutory dues were outstanding, at the year end, for
a period of more than six months from the date they became payable.
(c) According to the information and explanations given to us and the
records of the Company examined by us, dues of sales tax, income tax,
customs duty, wealth tax, service tax, excise duty and cess which have
not been deposited on account of disputes and the forum where the
dispute is pending , are as under:
NAME OF THE DUES/ DISPUTED AMOUNT PERIOD
TO WHICH FORUM WHERE DISPUTE
NAME OF THE STATUTE (Rs. IN LACS) AMOUNT
RELATES IS PENDING
SALES TAX
West Bengal Vat
Demand- 91.74 2004-05 & The Deputy Commiss
-ioner,(Appeal)
Appeal Filed 2007-08 TradeTax ,Kolkata
SERVICE TAX
Finance Act, 1994 73.11 2006-07 Delhi High Court
Finance Act, 1994 3,244.64 2006-07, Central Excise &
Service Tax
2008-09 Appellate Tribunal,
New Delhi
& 2009-10
CUSTOM / EXCISE DUTY
Customs Act, 1962 77.99 2007-08 Commissioner Of
Customs (Imports)
New Custom House,
Kolkota
Customs Act, 1962 5.76 2011-12 Assistant Excise and
Taxation
Commissioner, ICC,
Shambhu Import,
Punjab
LABOUR CESS
The Building And
Other Construction 85.61 2000-2007 Hon'ble Supreme Court
Workers (Regulation
Of Employment
And Condition Of
Service) Act, 1996
(x) The company does not have any accumulated losses as at the end of
the year. The Company has not incurred any cash losses during the
current and in the immediately preceding financial year.
(xi) In our opinion and according to information and explanations given
to us, the Company has not defaulted in repayment of dues to any
financial institution, bank or debenture-holder during the year.
(xii) According to the information and explanations given to us, the
company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the provisions of any special statute applicable
to Chit Fund, Nidhi or Mutual Benefit Fund / Society are not applicable
to the company.
(xiv) In our opinion and according to the information and explanations
given to us , the company is not dealing in or trading in shares,
securities, debentures and other investments, Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable in respect
of the company.
(xv) The company has given guarantees for loans taken by others from
banks and financial institutions. In our opinion and according to the
information and explanations given to us, the terms and conditions of
such guarantees to banks or financial institutions are not prejudicial
to the interest of the company.
(xvi) According to the information and explanations given to us, the
term loans were applied overall for the purpose for which the loans
were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, in our
opinion no funds raised on short-term basis have been used for
long-term investment.
(xviii) According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Companies Act, 1956.
(xix) According to the information and explanations given to us, the
company has created securities for the non- convertible debentures.
(xx) According to the information and explanations given to us, the
company had not raised any money by public issue during the year.
(xxi) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
information and explanation 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 G. C. SHARDA & CO.
Chartered Accountants
FRN : 500041N
CA. Pankaj Jain
Partner
M. No. : 505948
Place : New Delhi
Date : August 14, 2012
Mar 31, 2011
1. We have audited the attached Balance Sheet of Era Infra Engineering
Limited as at 31st March, 2011 and also the Profit & Loss Account and
the Cash Flow Statement 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 auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall 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 (as
amended) issued by 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 and 5 of
the said Order.
4. Further to our comments in the annexure referred to above, we
report that:
i) 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;
ii) 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 ;
iii) The balance sheet, profit & loss account and cash flow statement
dealt with by this report are in agreement with the books of account ;
iv) In our opinion, the balance sheet, profit & loss account and cash
flow statement dealt with this report comply with the accounting
standards referred to in sub-section (3C) section 211 of the Companies
Act, 1956 ;
v) On the basis of the written representations received from the
directors, as on 31st March, 2011 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2011 from being appointed as a director in terms of clause
(g) of sub section (1) of section 274 of the Companies Act, 1956.
vi) In our opinion, and to the best of our information and according to
the explanations given to us, the said accounts read together with the
notes thereto give the information required by the Companies Act, 1956
in the manner so required and give a true and fair view in conformity
with 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 the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE TO THE
MEMBERS OF ERA INFRA ENGINEERING LIMITED
(i) (a) The company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets are physically verified by the management
according to a phased programme designed to cover all the items over a
period of three years, which in our opinion is reasonable having regard
to the size of the Company and nature of its assets. Pursuant to the
programme, a portion of the fixed assets has been physically verified
by the management during the year and no material discrepancies between
the book records and the physical inventory have been noticed.
(c) During the year, the company has not disposed off any substantial
part of fixed assets.
(ii) (a) As explained to us, the inventory has been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable in relation to the size of the company.
(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) In our opinion and according to the information and explanations
given to us and on the basis of our examination of the records of
inventory, the company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the books records were not material and have been properly dealt with
in the books of accounts.
(iii) (a) According to the information and explanations given to us,
the company has granted unsecured loans to twelve parties covered in
the register maintained under section 301 of the Companies Act, 1956.
The party wise cumulative maximum amount involved during the year was Rs.
1,874.19 Lacs and the year-end balance of loans granted to such parties
was Rs. 298.18 Lacs.
(b) According to the information and explanations given to us, in our
opinion, the rate of interest and other terms and conditions on which
loans have been granted to companies covered in the register maintained
under section 301 of the Companies Act, 1956 are not, prima facie,
prejudicial to the interest of the Company.
(c) In our opinion and according to the information and explanations
given to us, the company is receiving the principal amounts as
stipulated and is receiving interest regularly.
(d) According to the information and explanations given to us, there
are no overdue amounts of loans granted to companies, listed in the
register maintained under Section 301 of the Companies Act, 1956.
(e) According to the information and explanations given to us, the
company has not taken any loan, secured or unsecured, from companies,
firms or other parties covered in the register maintained under section
301 of the Companies Act, 1956. In view of the above, clause 4(iii) (e)
to (g) of the Order are not applicable in respect of the Company.
(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 with regard
to purchases of inventory, fixed assets and with regard to execution of
contracts, sale of goods and services. However, as informed to us
there is a continuous procedure to strengthen the same. During the
course of our audit, we have not observed any major weakness in
internal controls nor have any such weaknesses been brought to our
notice.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts, arrangements or
transactions that need to be entered into the register maintained under
section 301 of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding rupees five lacs in respect of
any party during the year have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposit from public to
which provisions of sections 58A and 58AA or any other relevant
provisions of the Companies Act, 1956 and the rules framed there under
no order has been passed by the Company Law Board or National Company
Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) According to the information and explanations given to us, the
Central Government has not prescribed the maintenance of cost records
under section 209(1) (d) of the Companies Act, 1956 in respect of any
of activities of the company.
(ix) (a) Undisputed statutory dues including provident fund, investor
education and protection fund, employees' state insurance, income tax,
sales-tax, wealth tax, service tax, customs duty, excise duty, cess
have been regularly deposited with the appropriate authorities.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, investor
education and protection fund, employees' state insurance, income tax,
sales tax, wealth tax, service tax, customs duty, excise duty, cess and
other undisputed statutory dues were outstanding, at the year end, for
a period of more than six months from the date they became payable.
(c) According to the information and explanations given to us and the
records of the Company examined by us, dues of sales tax, income tax,
customs duty, wealth tax, service tax, excise duty and cess which have
not been deposited on account of disputes and the forum where the
dispute is pending , are as under:
NAME OF THE DUES/ DISPUTED
AMOUNT PERIOD TO
WHICH FORUM WHERE DISPUTE
NAME OF THE STATUTE (Rs. IN
LACS) AMOUNT
RELATES IS PENDING
SALES TAX
Uttar Pradesh Trade Tax 2.31 2005-06 The Joint Commissioner,
(Appeal) Trade Tax ,
Ghaziabad
West Bengal Vat Demand- 90.94 2004-05 The Deputy Commissioner,
(Appeal) Appeal Filed
Trade Tax ,Kolkata
Punjab Value Added Tax 1.85 2007-08 The Deputy Commissioner,
(Appeal) Trade Tax ,
Patiala
SERVICE TAX
Finance Act, 1944 146.22 2006-07 Appellate Tribunal ,
New Delhi
Finance Act, 1944 3,745.25 2006-07, Commissioner, Of
Service Tax,
2008-09 Division-I,
New Delhi.
& 2009-10
CUSTOM / EXCISE DUTY
Customs Act, 1962 221.04 2006-07 Commissioner Of Customs
(Imports)
& 2007-08 New Custom House, Kolkota
Central Excise Act 1.90 2006-07 Assistant Commissioner,
Central Excise,
& 2007-08 Karampura, New Delhi
LABOUR CESS
The Building And Other
Construction 85.61 2000-2007 Hon'ble Supreme Court
Workers (Regulation Of
Employment And Condition
Of Service) Act
(x) The company does not have any accumulated losses as at the end of
the year. The Company has not incurred any cash losses during the
current and in the immediately preceding financial year.
(xi) In our opinion and according to information and explanations given
to us, the Company has not defaulted in repayment of dues to any
financial institution, bank or debenture-holder during the year.
(xii) According to the information and explanations given to us, the
company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the provisions of any special statute applicable
to Chit Fund, Nidhi or Mutual Benefit Fund / Society are not applicable
to the company.
(xiv) In our opinion and according to the information and explanations
given to us , the company is not dealing in or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable in respect
of the company.
(xv) The company has given guarantees for loans taken by others from
banks and financial institutions. In our opinion and according to the
information and explanations given to us, the terms and conditions of
such guarantees to banks or financial institutions are not prejudicial
to the interest of the company.
(xvi) According to the information and explanations given to us, the
term loans were applied overall for the purpose for which the loans
were obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, in our
opinion, no funds raised on short-term basis have been used for
long-term investment.
(xviii) According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Companies Act, 1956.
(xix) According to the information and explanations given to us, the
company has created securities for the non- convertible debentures.
(xx) According to the information and explanations given to us, the
company had not raised any money by public issue during the year.
(xxi) To the best of our knowledge and according to the information and
explanations given to us, no fraud by the company and no material fraud
on the company has been noticed or reported during the year.
For G. C. SHARDA & CO.
Chartered Accountants
FRN : 500041N
CA. Vandna Gopal Sharda
Partner
M. No. : 091051
Place : New Delhi
Date : August 13, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of Era Infra Engineering
Limited as at 31st March, 2010 and also the Profit & Loss Account and
the Cash Flow Statement 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 auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall 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 (as
amended) issued by 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 and 5 of
the said Order.
4. Further to our comments in the annexure referred to above, we
report that:
i) 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;
ii) 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 ;
iii) The balance sheet, profit & loss account and cash flow statement
dealt with by this report are in agreement with the books of account ;
iv) In our opinion, the balance sheet, profit & loss account and cash
flow statement dealt with this report comply with the accounting
standards referred to in sub-section (3C) section 211 of the Companies
Act, 1956 ;
v) On the basis of the written representations received from the
directors, as on 31st March, 2010 and taken on record by the Board of
Directors, we report that none of the directors is disqualified as on
31st March, 2010 from being appointed as a director in terms of clause
(g) of sub section (1) of section 274 of the Companies Act, 1956.
vi) In our opinion, and to the best of our information and according to
the explanations given to us, the said accounts read together with the
notes thereto give the information required by the Companies Act, 1956
in the manner so required and give a true and fair view in conformity
with 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 the 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 fixed
assets.
(b) The fixed assets are physically verified by the management
according to a phased programme designed to cover all the items over a
period of three years, which in our opinion is reasonable having regard
to the size of the Company and nature of its assets. Pursuant to the
programme, a portion of the fixed assets has been physically verified
by the management during the year and no material discrepancies between
the book records and the physical inventory have been noticed.
(c) During the year, the company has not disposed off any substantial
part of fixed assets.
(ii) (a) As explained to us, the inventory has been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable in relation to the size of the company.
(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) In our opinion and according to the information and explanations
given to us and on the basis of our examination of the records of
inventory, the company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the books records were not material and have been properly dealt with
in the books of accounts.
(iii) (a) According to the information and explanations given to us,
the company has granted unsecured loans to nine companies covered in
the register maintained under section 301 of the Companies Act, 1956.
The maximum amount involved during the year was Rs. 2,158.09 lacs and
the year end balance of loans granted to such parties was Rs. 983.85
lacs.
(b) According to the information and explanations given to us , in our
opinion, the rate of interest and other terms and conditions on which
loans have been granted to companies covered in the register maintained
under section 301 of the Companies Act, 1956 are not, prima facie,
prejudicial to the interest of the Company.
(c) In our opinion and according to the information and explanations
given to us, the company is receiving the principal amounts as
stipulated and is receiving interest regularly.
(d) According to the information and explanations given to us, there is
no overdue amount of loans granted to companies, listed in the register
maintained under Section 301 of the Companies Act, 1956.
(e) According to the information and explanations given to us, the
company has not taken any loan, secured or unsecured, from companies,
firms or other parties covered in the register maintained under section
301 of the Companies Act, 1956. In view of the above, clause 4(iii) (e)
to (g) of the Order are not applicable in respect of the Company.
(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 with regard
to purchases of inventory, fixed assets and with regard to execution of
contracts, sale of goods and services. During the course of our audit,
we have not observed any major weakness in internal controls nor have
any such weaknesses been brought to our notice.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts, arrangements or
transactions that need to be entered into the register maintained under
section 301 of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding rupees five lacs in respect of
any party during the year have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, directives issued by the Reserve Bank o India in respect
of deposit accepted and the provisions of sections 58A and 58AA or any
other relevant provisions o the Companies Act, 1956 and the rules
framed there under, to that extent applicable, have been complied with.
We are informed by the management that no order has been passed by the
Company Law Board or Reserve Bank of India or an Court or any other
Tribunal.
(vii) In our opinion, the company has an internal audit system
commensurate with the size and nature of its business.
(viii) According to the information and explanations given to us, the
Central Government has not prescribed the maintenanc of cost records
under section 209(1) (d) of the Companies Act, 1956 in respect of any
of activities of the company.
(ix) (a) Undisputed statutory dues including provident fund, investor
education and protection fund, employees state insurance, income tax,
sales-tax, wealth tax, service tax, customs duty, excise duty, cess
have been generally regular deposited with the appropriate authorities.
(b) Accordingly to the information and explanations given to us, no
undisputed amounts payable in respect of providen fund, investor
education and protection fund, employees state insurance, income tax,
sales tax, wealth tax service tax, customs duty, excise duty, cess and
other undisputed statutory dues were outstanding, at the yea end, for a
period of more than six months from the date they became payable.
(c) According to the information and explanations given to us and the
records of the Company examined by us, due of sales tax, income tax,
customs duty, wealth tax, service tax, excise duty and cess which have
not bee deposited on account of disputes and the forum where the
dispute is pending , are as under:
S. Name of the
No. Statute Nature of Amount Period to
which Forum where
Dues (Rs.in Amount dispute is
lacs) relates pending
1 Uttar
Pradesh Entry Tax 2.31 2005-2006 The Joint
Trade Tax Demand Commissioner,
(Appeal) Trade
Tax, Ghaziabad
2 West Bengal VAT 42.20 2004-2005 Dy. Commission
Commercial er.
Tax Demand Commercial Tax,
Kolkata
3 Deptt of
Trade &
Taxes, Sales Tax 25.07 2005-2006 Appellate
Tribunal,
Govt. of
NCT of
Delhi Demand New Delhi
4 Punjab
Excise &
Taxation Sales Tax 1.85 2007-2008 Dy.Commission
Demand er, (Appeal)
Excise &
Taxation
Patiala
5 Custom
Excise & Service Tax 2.69 2005-2006 Appellate
Tribunal,
Service Tax Demand New Delhi
6 Custom
Excise & Service Tax 146.22 2006-2007 Appellate
Tribunal,
Service Tax Demand New Delhi
7 Central
Excise New
Delhi Custom
Demand 1.90 2006-2007, Commissioner
(Appeal)
2007-2008 Central Exci
se, New Delhi
8 The
Building
And Other Workers
Welfare 64.24 2000 To
2007 Honble
Supreme Court
Construc
tion Workers Cess
(Regulation
of Employment
And Condition
Of Service)
Act.
(x) The company does not have any accumulated losses as at the end of
the year. The Company has not incurred any cash losses during the
current and in the immediately preceding financial year.
(xi) In our opinion and according to information and explanations given
to us, the Company has not defaulted in repayment of dues to any
financial institution, bank or debenture-holder during the year.
(xii) According to the information and explanations given to us, the
company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the provisions of any special statute applicable
to Chit Fund, Nidhi or Mutual Benefit Fund / Society are not applicable
to the company.
(xiv) In our opinion and according to the information and explanations
given to us, the company is not dealing in or trading in shares,
securities, debentures and other investments, Accordingly, the
provisions of clause 4(xiv) of the Order are not applicable in respect
the company.
(xv) The company has given guarantees for loans taken by others from
banks and financial institutions. In our opinion and according to the
information and explanations given to us ,the terms and conditions of
such guarantees to banks or financial institutions are not prejudicial
to the interest of the company.
(xvi) According to the information and explanations given to us, the
term loans were applied for the purpose for which the loans were
obtained.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, in our
opinion no funds raised on short-term basis have been used for
long-term investment.
(xviii) According to the information and explanations given to us, the
company has made preferential allotment of equity shares by conversion
of warrants to parties and companies covered in the register maintained
under section 301 of the Companies Act, 1956. In our opinion, the price
at which shares have been issued is not prejudicial to the interest of
the company.
(xix) According to the information and explanations given to us, the
company has created securities for the non convertible debentures,
except in respect of 2000 Nos. of non convertible debentures of Rs.10
lacs each against which security creation is under process.
(xx) According to the information and explanations given to us, the
company had not raised any money by public issue during the year.
(xxi) 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 G.C. SHARDA & CO.
Chartered Accountants
CA. Vandna Gopal Sharda
Partner
M. No. : 091051
FRN :500041N
Place :New Delhi.
Date :31st May, 2010