Mar 31, 2023
Report on the Audit of the Standalone Financial Statements
OPINION
We have audited the accompanying standalone financial statements of PNC INFRATECH LIMITED ("the Company"), which comprise the standalone balance sheet as at March 31, 2023, the standalone statement of profit and loss including other comprehensive income, the standalone statement of changes in equity and the standalone statement of cash flows for the year ended on that date, and notes to the standalone financial statements including a summary of significant accounting policies and other explanatory information (hereinafter referred to as "the standalone financial statements").
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013, as amended ("the Act") in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,2023 and its profit and other comprehensive income, changes in equity and its cash flows for the year ended on that date.
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs), as specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditorâs 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 Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.
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.
Key Audit Matter |
How our audit addressed the key audit matter |
(1) Revenue Recognition for Construction contracts The Company generates significant revenue from construction contracts and long-term operating and maintenance agreements. Revenue from these contracts is recognized over the period of time in accordance with the requirements of Ind AS 115, Revenue from Contracts with Customers. For majority of its contracts, the Company recognizes revenue and profit on the stage of completion based on the proportion of contract costs incurred for the work performed to the balance sheet date, relative to the estimated costs on the contract at completion. This method requires the Company to perform an initial assessment of total estimated cost and reassess the total construction cost at each reporting period end to determine the appropriate percentage of completion. The recognition of revenue and profit / loss therefore are based on estimates in relation to the estimated total costs of each contract, which involves significant judgments, identification of contractual obligations and the Companyâs rights to receive payments for performance completed, scope amendments and price escalations resulting in revised contract price. Refer Note 2.10 and Note 31 of the standalone financial statements. |
Our audit procedures included the following: ⢠Understood and evaluated the design and tested the operating effectiveness of key internal financial controls, including those related to review and approval of estimated project cost and review of provision for estimated loss by the authorised representatives. ⢠Obtained an understanding of companyâs revenue recognition policies and reviewed compliance in terms of provisions of Ind-AS 115. ⢠Performed assessment that the revenue recognition method applied was appropriate based on the terms of the arrangement and contract; ⢠For a sample of contracts, we obtained the percentage of completion calculations, agreed key contractual terms to the signed contracts, tested the mathematical accuracy of the cost to complete calculations and re-performed the calculation of revenue recognized during the year based on the percentage of completion. ⢠Obtained an understanding of the revenue recognition processes including documentation maintained and tested key internal controls impacting revenue, on sample basis; ⢠Assessed the reliability of managementâs estimates by comparing the actual outcome of completed projects with previous estimated timelines; |
Key Audit Matter |
How our audit addressed the key audit matter |
(2) Litigations Matters & Contingent liabilities (as described in note 40 of the standalone financial statements) The Company is subject to claims and litigations. Major risks identified by the Company in that area relate to claims against the Company and taxation matters. The amounts of claims and litigations may be significant and estimates of the amounts of provisions or contingent liabilities are subject to significant management judgment. Due to complexity involved in these litigation matters, managementâs judgment regarding recognition and measurement of provisions for these legal proceedings is inherently uncertain and might change over time as the outcomes of the legal cases are determined and it has been considered as a key audit matter. |
Our procedures included the following: ⢠Assessing the procedures implemented by the Company to identify the risks it is exposed to. ⢠Discussion with the management on the development in these litigations during the year ended March 31,2023. ⢠Obtaining an understanding of the risk analysis performed by the Company, with the relating supporting documentation and studying written statements from internal/ external legal experts, when applicable. ⢠Verification that the accounting and/ or disclosures as the case may be in the standalone financial statements is in accordance with the assessment of legal counsel/ management. ⢠Obtaining representation letter from the management on the assessment of those matters as per SA 580 (revised)-written representations. |
The Companyâs Board of Directors is responsible for the other information. The other information comprises the information included in the Annual Report but does not include the standalone financial statements and our auditorâs report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements, or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
RESPONSiBiLiTiES OF THE MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR THE STANDALONE FiNANCiAL STATEMENTS
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, changes in equity and cash flows of the Company in accordance with accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is responsible for overseeing the Companyâs 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 auditorâs report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken based on these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3) (i) of the Act, we are also responsible for expressing our opinion on internal financial controls with reference to standalone financial statements 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.
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.
OTHER MATTER
We did not audit the Statement include the audited standalone financial statements of three joint operations, whose standalone financial statements reflect total assets of Rs.73,913.89 lakhs as at March 31, 2023, total revenue of Rs.1,29,438.62 lakhs, total net profit after tax of Rs.32.33 lakhs and total comprehensive income of Rs.32.33 lakhs for the year ended March 31, 2023 and net cash inflows of Rs.3,436.93 lakhs for the year ended on that date. The standalone financial statements of joint operations have been audited by the other auditors whose reports have been furnished to us by the management and our conclusion on the statement, in so far as it relates to the amount and disclosures included in respect of joint operations, is based solely on the report of such other auditors and the procedures performed by us as stated in the paragraph above. The above figures are before the consolidation adjustments.
Our opinion on the standalone financial statements and our report on other legal and regulatory requirement below, are not modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditors.
REPORT ON OTHER LEGAL AND REGULATORY REQUiREMENTS
1. As required by the Companies (Auditor''s Report) Order, 2020 ("the Order") issued by the Central Government of India in terms of Section 143(11) of the Act, we give in the "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, the Statement of Cash Flows and the Statement of Changes in Equity dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended.
e) On the basis of the written representations received from the directors as on March 31, 2023 taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2023, from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference to the standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".
g) With respect to the Other matters to be included in the Auditorâs Report in accordance with the requirements of Section 197(16) of the Act, as amended:
In our opinion, the managerial remuneration for the year ended March 31, 2023 has been paid / payable by the Company to its directors in accordance with the provisions of Section 197 read with Schedule V to the Act.
h) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations as at March 31, 2023 on its financial position in its financial statement - Refer note 40 to the standalone financial statements.
ii. The Company has made provisions, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long term contracts including derivatives contracts.
iii. There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Company.
iv. (a) Management has represented to us
that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in
writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) Management has represented to us that, to the best of its knowledge and belief, other than as disclosed in the notes to the accounts, no funds have been received by the Company from any person(s) or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(c) Based on our audit procedures conducted that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that cause us to believe that the representation under sub-clause (a) & (b) contain any material misstatement.
v As states in note 19 to the standalone
financial statements:
(a) The final dividend proposed in the previous year, declared and paid by the Company during the year is in accordance with Section 123, as applicable.
(b) The Board of Director of the Company have proposed final dividend for the year, which is subject to the approval of the members at the ensuing Annual General Meeting. The dividend declared is in accordance with Section 123 of the Act, as applicable.
Chartered Accountants Firmâs Registration Number: 001075N
Partner
Place: Agra Membership Number: 093684
Date: May 26, 2023 UDIN: 23093684BGXGSX6999
Mar 31, 2022
PNC Infratech LimitedREPORT ON THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTSOpinion
We have audited the accompanying standalone financial statements of PNC Infratech Limited ("the Company"), which comprise the balance sheet as at March 31, 2022, the statement of profit and loss, including the statement of other comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, and notes to the standalone financial statements, including a summary of the 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, as amended ("the Act") in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,2022, the profit including other comprehensive losses, changes in equity and its cash outflows for the year ended on that date.
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs), as specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditorâs 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 Ethicsâ issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the Standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics.
We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Key Audit Matter
Key audit matters (KAM) 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 the key audit matters to be communicated in our report.
For each matter below, our description of how our audit addressed the matter is provided in that context. |
|
Key Audit Matter |
How our audit addressed the Key Audit Matter |
1) Revenue Recognition for Construction contracts The Company generates significant revenue from construction contracts and long-term operating and maintenance agreements. Revenue from these contracts is recognized over the period of time in accordance with the requirements of Ind AS 115, Revenue from Contracts with Customers. For majority of its contracts, the Company recognizes revenue and profit on the stage of completion based on the proportion of contract costs incurred for the work performed to the balance sheet date, relative to the estimated costs on the contract at completion. The recognition of revenue and profit / loss therefore are based on estimates in relation to the estimated total costs of each contract, which involves significant judgments, identification of contractual obligations and the Companyâs rights to receive payments for performance completed, scope amendments and price escalations resulting in revised contract price. Refer Note 2.10 and Note 32 of the standalone financial statements. |
Our revenue testing included both testing of the Companyâs internal controls as well as substantive audit procedures targeted at selected major long-term projects. Our audit procedures included the following: ⢠Obtained an understanding of companyâs revenue recognition policies and reviewed compliance in terms of provisions of Ind-AS 115. ⢠Performed assessment that the revenue recognition method applied was appropriate based on the terms of the arrangement and contract; ⢠Obtained an understanding of the revenue recognition processes including documentation maintained and tested key internal controls impacting revenue, on sample basis; ⢠Assessed the reliability of managementâs estimates by comparing the actual outcome of completed projects with previous estimated timelines; |
Key Audit Matter |
How our audit addressed the Key Audit Matter |
2) Impairment Assessment of carrying value of equity investment, unsecured loan and trade receivable in Associate. (Refer to Note 2.18, 7, 14, 16, 52 and 57 of the financial statement) (Rs. 12,972.12 Lakhs) During the year, company has made the impairment testing for amount recoverable in an associate in the form of investment, unsecured loans and trade receivable. Subsequent to the year end, company has enter into an agreement for transfer of investment into equity and along with the outstanding unsecure loan and trade receivable to Cube Highways and Infrastructure Pte Ltd. The recoverable value of mentioned asset is lesser than the carrying value of the asset. The deals has already been concluded before adoption of financial statement and the actual value of the impairment provision aggregating to Rs. 12972.12 Lakhs is booked as loss in the financial statement. |
Our Audit Procedures included the following: ⢠Obtained understanding of the process, evaluated the design and tested operating effectiveness of controls in respect of impairment assessment of investments in equity investment. ⢠Held discussions with management regarding appropriate implementation of policy on impairment. ⢠Considering the terms and conditions mentioned in Share purchase agreement entered by the company for disposal of investment in associate. ⢠Verification or reconciliation of the amount realized against the carrying value of the assets in the standalone financial statement and impairment provision has been made accordingly against investment, unsecured loan and trade receivable. ⢠We have verified the subsequent proceeds of the amount realized form the buyers towards disposal of the investment in associate including trade receivable and unsecured loan. ⢠We observe the necessary documentation relating to the agreement between company and buyer. ⢠Assessed the completeness and accuracy of the disclosures in the financial statements (refer note 2.18, 7, 14, 16, 52 and 57 of the standalone financial statements). |
3) Litigations Matters & Contingent liabilities (as described in note no.41 of the standalone financial statements) The Company is subject to claims and litigations. Major risks identified by the Company in that area relate to claims against the company and taxation matters. The amounts of claims and litigations may be significant and estimates of the amounts of provisions or contingent liabilities are subject to significant management judgment. Due to complexity involved in these litigation matters, managementâs judgment regarding recognition and measurement of provisions for these legal proceedings is inherently uncertain and might change over time as the outcomes of the legal cases are determined and it has been considered as a key audit matter. |
Principal Audit Procedures: ⢠Assessing the procedures implemented by the company to identify and gather the risks it is exposed to. ⢠Discussion with the management on the development in theses litigations during the year ended March 31,2022. ⢠Obtaining an understanding of the risk analysis performed by the company, with the relating supporting documentation and studying written statements from internal / external legal experts, when applicable. ⢠Verification that the accounting and / or disclosures as the case may be in the standalone financial statements is in accordance with the assessment of legal counsel/ management. ⢠Obtaining representation letter from the management on the assessment of those matters as per SA 580 (revised) - written representations. |
Information Other than the Standalone Financial Statements and Auditor''s Report Thereon
The Companyâs Board of Directors is responsible for the other information. The other information comprises the information included in the annual report but does not include the standalone financial statements and our auditorâs report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any
form of assurance or conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether such other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information,
we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements
The 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, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act, read with relevant Rules, as amended, as applicable.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the standalone financial statements, management is responsible for assessing the 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 Companyâs 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 control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3) (i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the 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 a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the 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 auditorâs report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
1) The standalone financial Statement include the audited financial statement of three joint operations, whose financial statement reflect total assets Rs. 26271.65 lakhs as at March 31,2022, total revenue of Rs. 44,044.51 lakhs and total net profit after tax of Rs. 35.8 lakhs and total comprehensive income of Rs. 35.8 lakhs for the year ended March 31,2022, and net cash inflows of Rs. 3129.38 lakhs for the year ended March 31, 2022, as considered in the standalone financial statement which have been audited by other auditors. The auditorâs reports on the financial statements for these three joint operations have been furnished to us by the management and our opinion on the standalone financial statement in so far as it relates to the amounts and disclosures included in respect of these joint operations is based solely on the reports of such auditors and the procedure performed by us as stated in paragraph above.
Our opinion on the standalone financial statement and our report on other legal and regulatory requirement below, are not modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditors.
2) The standalone financial statements of the Company for the year ended March 31, 2021, were audited by predecessor auditor, S.S Kothari Mehta & Company, who have expressed an unmodified opinion on those
standalone financial statement vide their audit report dated on June 25, 2021.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2020("the Order"), issued by the Central Government of India in terms of Section 143 (11) of the Act, we give in the "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, based on our audit, 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 of the aforesaid standalone financial statements;
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books;
c) The balance sheet, the statement of profit and loss including the statement of other comprehensive income, the cash flow statement and statement of changes in equity dealt with by this Report are in agreement with the books of account;
d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015 as amended and other accounting principles generally accepted in India;
e) On the basis of the written representations received from the directors as on March 31,2022 and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2022 from being appointed as a director in terms of Section 164 (2) of the Act;
f) With respect to the adequacy of the internal financial controls with reference to Standalone financial statement of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B" to this report: Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the company internal financial control over financial reporting of those company, for reasons stated therein; and
g) In our opinion, the managerial remuneration for the year ended March 31, 2022 has been paid / provided by the Company to its directors in accordance with the provisions of Section 197 read with Schedule V to the Act;
h) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations as at March 31, 2022 on its financial position in its standalone financial statements-Refer Note 41 to the standalone financial statements;
ii. The Company did not have any material foreseeable losses, on long term contracts including derivative contracts; and
iii There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Company during the year ended March 31,2022.
iv a) Management has represented to us
that , to the best of itâs knowledge and belief, other than as disclosed in the notes to the accounts, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
b) Management has represented to us that, to the best of its knowledge and belief, other than as disclosed in the
notes to the account, no funds have been received by the company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries c) Based on our audit procedure conducted that are considered reasonable and appropriate in the circumstances, nothing has come to our attention that cause us to believe that the representation given by the management under paragraph (2) (h) (iv) (a) & (b) contain any material misstatement.
(v) As stated in Notes 20 to the standalone financial statements:
a) The final dividend proposed in the previous year, declared and paid by the company during the year is in accordance with Section 123 of the Act, as applicable.
b) The Board of Director of the Company have proposed final dividend for the year, which is subject the approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with Section 123 of the Act, as applicable.
Chartered Accountants Firmâs Registration No. 001075N
Partner
Place : New Delhi Membership No. 095541
Date : May 28, 2022 UDIN:- 22095541AKDGFX3343
Mar 31, 2021
To the Members of PNC infratech LimitedReport on the Audit of the Standalone Financial StatementsOpinion
We have audited the accompanying standalone financial statements of PNC infratech Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2021, the Statement of Profit and Loss (including other comprehensive income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and notes to the financial statements, including a summary of the significant accounting policies and other explanatory information (hereinafter referred to as "the standalone financial statements").
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 (" the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules,2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2021, the profit and total comprehensive income, changes in equity and its cash flows for the year ended on that date.
We conducted our audit of the 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 ICAIâs Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Key Audit Matter
Key audit matters (KAM) 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:
Key Audit Matter |
How our audit addressed the Key audit matter |
Revenue Recognition for Construction contracts The Company generates significant revenue from construction contracts and long-term operating and maintenance agreements. Revenue from these contracts is recognized over the period of time in accordance with the requirements of Ind AS 115, Revenue from Contracts with Customers. For majority of its contracts, the Company recognizes revenue and profit on the stage of completion based on the proportion of contract costs incurred for the work performed to the balance sheet date, relative to the estimated costs on the contract at completion. The recognition of revenue and profit / loss therefore are based on estimates in relation to the estimated total costs of each contract, which involves significant judgments, identification of contractual obligations and the Companyâs rights to receive payments for performance completed, scope amendments and price escalations resulting in revised contract price. Refer Note 2.10 and Note 30 of the standalone financial |
Our revenue testing included both testing of the Companyâs internal controls as well as substantive audit procedures targeted at selected major long-term projects. Our audit procedures included the following: ⢠Obtained an understanding of companyâs revenue recognition policies and reviewed compliance in terms of provisions of Ind-AS 115. ⢠Performed assessment that the revenue recognition method applied was appropriate based on the terms of the arrangement and contract; ⢠Obtained an understanding of the revenue recognition processes including documentation maintained and tested key internal controls impacting revenue, on sample basis; ⢠Assessed the reliability of managementâs estimates by comparing the actual outcome of completed projects with previous estimated timelines; |
information Other than the Standalone Financial Statements and Auditor''s Report Thereon
The Companyâs Board of Directors is responsible for the preparation of the other information. The other information comprises the information included in the Management Discussion and Analysis, Boardâs Report including Annexures to Boardâs Report, Business Responsibility Report, Corporate Governance and Shareholderâs Information, but does not include the standalone financial statements and our auditorâs report thereon.
Our opinion on the standalone financial statements does not cover the other information and we do not express any form of assurance or conclusion thereon.
In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Management Responsibilities and Those Charged with Governance for the standalone financial statements
The Companyâs Board of Directors is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with Ind AS and other accounting principles generally accepted in India. 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.
In preparing the standalone financial statements, the management is responsible for assessing the Companyâs ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors 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 Companyâs 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 auditorâs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal 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 managementâs use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs report to the related disclosures in the 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 auditorâs report. However, future events or conditions may cause the Company to cease to continue as a going concern. ⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation. Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the 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 auditorâs report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The standalone financial results include the audited financial results of two joint operations, whose financial results reflect total assets '' 12,476.86 lakhs as at March 31,2021, total revenue of '' 46,855.30 lakhs and total net profit after tax of '' 9.02 lakhs and total comprehensive income of '' 9.02 lakhs for the year ended March 31, 2021 respectively, and net cash inflows of '' 239.84 lakhs for the year ended March 31, 2021, as considered in the standalone financial results have been audited by their auditors.
The auditorâs reports on the financial statements for these two joint operations has been furnished to us by the management and our opinion on the standalone financial results in so far as it relates to the amounts and disclosures included in respect of two joint operations is based solely on the reports of such auditors and the procedure performed by us as stated in paragraph above.
Our opinion on the standalone financial results is not modified in respect of the above matter with respect to our reliance on the work done and the reports of the other auditors.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016("the Order"), issued by the Central Government of India in terms of section 143 (11) of the Act, we given in the "Annexure A" a statement on the matters specified in paragraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act, based on our audit, 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 Cash Flow and Statement of Changes in Equity dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Ind AS specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015 as amended and other accounting principles generally accepted in India.
e) On the basis of the written representations received from the directors as on March 31,2021 taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2021 from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference to financial statement of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B". Our report
expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls with reference to financial statement.
g) With respect to the other matters to be included in the Auditorâs Report in accordance with the requirements of section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197of the act, read with schedule V of the Act.
h) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014,
as amended in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its standalone financial statements. -Refer Note 39 to the standalone financial statements.
ii. The Company did not have any material foreseeable losses, on long term contracts including derivative contract required under the applicable law or Indian accounting standards.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
Mar 31, 2018
Report on the Financial Statements
We have audited the accompanying Financial Statements of PNC INFRATECH LIMITED (âthe Companyâ) which comprises the Balance Sheet as at 31st March 2018, the statement of profit and loss (including other comprehensive income), the statement of cash flows 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 âInd AS financial statementsâ).
Managementâs Responsibility for the 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 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) prescribed under section 133 of the Act read with relevant rules issued thereunder.
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 judgement 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 Ind AS financial statements that give a true and fair view and are free from material misstatements, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of the 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 Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of the material misstatement of the Ind AS financial statements, whether due to error or fraud. In making those risk assessments, the auditor considers internal control relevant to the Companyâs preparation of the Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and reasonableness of the accounting estimates made by the Companyâs Directors as well as evaluating the overall presentation of the 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 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 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 including the Ind AS, of the financial position of the Company as at 31st March, 2018 and its financial performance including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
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 section 143 of the Act, we give in the Annexure-âAâ statement on the matters specified in paragraphs 3 and 4 of the Order,
2. As required by section 143(3)of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b. In our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;
c. The Balance Sheet, Statement of Profit and Loss, Statement of Change in Equity and Cash Flow Statement dealt with by this Report are in agreement with the books of account,
d. In our opinion, the aforesaid Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act read with relevant rules issued thereunder;
e. On the basis of written representations received from the directors as on 31 March 2018, and 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 - Bâ.
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 litigation on its financial position in its financial statements- Refer Note No.37to the financial statements;
ii) There is no any material foreseeable losses, on long term contracts including derivative contract required under the applicable law or Indian accounting standards;
iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
ANNEXURE - âAâ TO THE INDEPENDENT AUDITORâS REPORT TO THE PNC INFRATECH LIMITED
Referred to in paragraph 1 of report on other legal and regulatory requirementâs paragraph of our report on the financial statement of even date,
(i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) As explained to us, the fixed assets are physically verified by the management 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. According to information and explanation given to us, the discrepancies noticed on current phase of physical verification were not material
(c) Based on the available records as certified by the management, the title deed of immovable property is held in the name of the company.
(ii) (a) The inventories of the Company have been physically verified by the management during the year.
(b) In our opinion and according to the information & explanations given to us, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size and nature of the business of the Company.
(c) In our opinion and according to the information & explanations given to us, the Company is maintaining proper records of inventory. During the year, the physical verification was conducted at various sites and no material discrepancies have been noticed. The process of recording of physical verification needs to be further strengthened considering the expansion and nature & cycle of various projects.
(iii) (a) Ts informed to us, the Company has granted unsecured loans to its 3 subsidiaries & an associate, out of which loan given to one subsidiary and an associate is interest free and interest bearing loan has been given @ 12 % p.a. and covered in the register maintained under section 189 of the Companies Act, 2013, the balance outstanding is Rs.17239.01 Lakhs (including interest)
(b) The tenure of agreement period of repayment are six months from the date of disbursement or receipt of grant/annuity, the receipt of principle amount as explained it will be recovered once the payment received by borrower from respective authority and in respect of interest free loan, it will be converted into share warrant/optionally convertible debenture.
(c) There is overdue interest of Rs.531.671Lakhs. As explained the company is pursuing for its recovery.
(iv) The loans, investments, guarantees and pledge of securities given to/for subsidiaries/associates/joint ventures are in compliance of section 185 and 186 of the Companies Act, 2013 as these are covered under exceptions as provided in section 185 and 186 of the Act, and are within the prescribed limits.
(v) The Company has not accepted any deposits from the public within the meaning of directives issued by the Reserve Bank of India and provisions of sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed thereunder.
(vi) We have broadly reviewed the books of account relating to materials, Labour and other items of cost maintained by the Company as specified by the Central Government of India under section 148(1) of the Companies Act, 2013 and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have not made a detailed examination of the records with a view to determine whether they are accurate and complete.
(vii) (a) According to the information and explanations given to us and the records of The Company examined by us, in our opinion, the Company is generally regular and is in process of aligning with changing regulations, in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employeesâ State Insurance, Income-Tax, Sales Tax/VAT/Work Contract Tax, Service Tax, Customs Duty, Excise Duty, Cess, Goods & Service Tax and other material statutory dues, as applicable, with the appropriate authorities except the wealth tax payable ofRs.13.39 Lakhs outstanding for more than six months at the balance sheet date.
(b) According to the information and explanations given to us and the records of the Company examined by us, the particulars of dues of Income-Tax, Sales-Tax, Service Tax, Customs Duty, Excise Duty, Value added tax, Goods & Service Tax and Cess as at March 31, 2018 which have not been deposited on account of disputes, are as follows: -
Name of the Statute |
Nature of Dues |
Period to which the amount relates |
Forum where dispute is pending |
Demand Amount (Rs in Lakhs) |
Amount Deposited (Rs in Lakhs) |
UP Entry Tax Act,2007 |
UP Entry Tax |
2008-16 |
Commercial Tax Tribunal, Agra |
79.91 |
- |
2013-14 |
Commercial Tax Tribunal, Agra |
45.39 |
- |
||
2014-15 |
Commercial Tax Tribunal, Agra |
50.73 |
- |
||
UP VAT Act,2007 |
VAT |
2006-07 |
TDS certificate to be get verified |
38.1 |
- |
2007-08 |
Commercial Tax Tribunal, Agra |
50.48 |
- |
||
2010-16 |
Additional Commissioner, Grade II, Agra |
711.33 |
- |
||
2013-14 |
Additional Commissioner, Grade II, Agra |
3276.77 |
- |
||
2014-15 |
Additional Commissioner, Grade II, Agra |
4767.71 |
- |
||
Uttarakhand VAT Act, 2005 |
VAT |
2005-12 |
Joint Commissioner, Haldwani |
211.04 |
- |
2013-14 |
Joint Commissioner, Haldwani |
87.74 |
- |
||
Haryana VAT Act ,2003 |
VAT |
2010-12 |
Taxation Tribunal, Chandigarh |
34.75 |
- |
2010-12 |
Dy. Excise and Taxation Officer, Karnal |
22.2 |
- |
||
Central Excise & Service Tax Act, 1994 |
Service Tax |
2003-18 |
CESTAT Dohara |
178.54 |
- |
Central Excise & Service Tax Act, 1994 |
Service Tax |
2005-18 |
CESTAT Kanpur |
371.20 |
- |
Income Tax ActRs.1961 |
Income Tax |
2005-12 |
Under Time Limitation |
1125.93 |
600.00 |
Labour Welfare ActRs.1953 |
Labour Cess |
2010 |
Honâble MP High Court |
268.25 |
2.69 |
(viii) According to the records of The Company examined by us and the information and explanations given to us, in our opinion, the Company has not defaulted in repayment of its dues to Banks/ Financial Institution.
(ix) As per the information and explanation given to us and on the basis of our examination of the records, during the year, the company has not raised any money by way of Initial Public Offer or Further Public Offer. The term loan amounts have been applied for which they have been obtained. (Refer note no. 18 to the financial statements)
(x) During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India, we have neither come across any instance of fraud on or by the Company noticed or reported during the year, nor have we been informed of such case by the management.
(xi) As per the information and explanation given to us and on the basis of our examination of the records, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) The company is not Nidhi Company therefore this clause is not applicable to the company.
(xiii) As per the information and explanation given to us and on the basis of our examination of the records, the company has transacted with the related parties which are in compliance with sections 177 and 188 of Companies Act, 2013 and the details have been disclosed in the financial statements refer note no. 42 to the financial statements.
(xiv) The company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review.
(xv) As per the information and explanations given to us and on the basis of our examination of the records, the company has not entered into any non-cash transactions with directors or persons connected with him.
(xvi) The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Therefore this clause is not applicable to the company.
ANNEXURE - B TO THE INDEPENDENT AUDITORâS REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTS OF PNC INFRATECH LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of PNC INFRATECH LIMITED (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on âthe internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of Indiaâ. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs internal financial controls over financial reporting based on our audit. We have conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (theâGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that
1) Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
2) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company, and
3) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion based on records, the Company has in all respect, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were generally operating effectively as at March 31, 2018,based on âthe internal control over financial reporting system & proceduresâ, criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of Indiaâ
For S.S. Kothari Mehta & Co.
(Chartered Accountants)
Firm Registration no. 000756N
(Neeraj Bansal)
Place: Agra Partner
Date: May 23, 2018 Membership No. : 095960
Mar 31, 2017
Report on the Financial Statements
We have audited the accompanying Financial Statements of PNC INFRATECH LIMITED (âthe Companyâ) which comprises the Balance Sheet as at 31st March, 2017, the statement of profit and loss [including other comprehensive income], the statement of cash flows 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 âInd AS financial statementsâ).
Managementâs Responsibility for the 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 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) prescribed under section 133 of the Act read with relevant rules issued thereunder.
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 judgement 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 Ind AS financial statements that give a true and fair view and are free from material misstatements, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit of the 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 Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of the material misstatement of the Ind AS financial statements, whether due to error or fraud. In making those risk assessments, the auditor considers internal control relevant to the Companyâs preparation of the Ind AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and reasonableness of the accounting estimates made by the Companyâs Directors as well as evaluating the overall presentation of the 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 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 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 including the Ind AS, of the financial position of The Company as at 31st March, 2017 and its financial performance including other comprehensive income, its cash flows and the changes in equity for the year ended on that date.
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 section 143 of the Act, we give in the Annexure - âAâ statement on the matters specified in paragraphs 3 and 4 of the Order;
2. As required by section 143(3)of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b. In our opinion proper books of account as required by law have been kept by The Company so far as appears from our examination of those books;
c. The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this Report are in agreement with the books of account;
d. In our opinion, the aforesaid Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act read with relevant rules issued thereunder;
e. On the basis of written representations received from the directors as on 31 March 2017, and 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 - B â.
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 litigation on its financial position in its financial statements- Refer Note 38 to the financial statements;
ii. as there is not any material foreseeable losses, on long term contracts including derivative contract therefore The Company has not made any provision, required under the applicable law or Indian accounting standards;
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 Company has provided requisite disclosure in its Ind AS financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016. And on the basis of information & explanation provided these are in accordance with the books of accounts maintained by the company. Refer Note 55 to the Ind AS financial statements.
ANNEXURE - âAâ TO THE INDEPENDENT AUDITORâS REPORT TO THE PNC INFRATECH LIMITED
Referred to in paragraph 1 of report on other legal and regulatory requirementâs paragraph of our report on the financial statement of even date,
(i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) As explained to us, the fixed assets are physically verified by the management 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. According to information and explanation given to us, the discrepancies noticed on current phase of physical verification were not material
(c) The title deed of immovable property is held in the name of The Company based on available record, as certified by the management
(ii) (a) The inventories of The Company have been physically verified by the management during the year.
(b) In our opinion and according to the information & explanations given to us, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size and nature of the business of the Company.
(c) In our opinion and according to the information & explanations given to us, The Company is maintaining proper records of inventory. During the year, the physical verification was conducted at various sites and no material discrepancies have been noticed. The process of recording of physical verification needs to be further strengthened considering the expansion and nature & cycle of various projects.
(iii) (a) As informed to us, The Company has granted unsecured loans to its 4 subsidiaries & an associate and, covered in the register maintained under section 189 of the Companies Act, 2013, the balance outstanding Rs.10008.64 Lakhs (including interest]
(b) The tenure of agreement period of repayment are six months from the date of disbursement or receipt of grant/annuity, the receipt of principle amount as explained it will be recovered once the payment received by borrower from respective authority.
(c) There is overdue interest of Rs.1243.18 Lakhs. As explained The Company is pursuing for its recovery
(iv) The loans, investments, guarantees an pledge of securities given to/ for subsidiaries/ associates/ joint ventures are in compliance of section 185 and 186 of the Companies Act, 2013 as these are covered under exceptions as provided in section 185 and 186 of the Act, and are within the prescribed limits.
(v) The Company has not accepted any deposits from the public within the meaning of directives issued by the Reserve Bank of India and provisions of sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed thereunder.
(v) We have broadly reviewed the books of account relating to materials, Labour and other items of cost maintained by The Company as specified by the Central Government of India under section 148(1) of the Companies Act, 2013 and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have not made a detailed examination of the records with a view to determine whether they are accurate and complete.
(vii) (a) According to the information and explanations given to us and the records of The Company examined by us, in our opinion, The Company is generally regular and is in process of aligning with changing regulations, in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employeesâ State Insurance, Income-Tax, Sales Tax/VAT/ Work Contract Tax, Service Tax, Customs Duty, Excise Duty, Cess and other material statutory dues, as applicable, with the appropriate authorities except the wealth tax payable of Rs.13.39 Lakhs outstanding for more than six months at the balance sheet date.
(b) According to the information and explanations given to us and the records of The Company examined by us, the particulars of dues of Income-Tax, Sales-Tax, Service Tax, Customs Duty, Excise Duty, Value added tax and Cess as at March 31, 2017 which have not been deposited on account of disputes, are as follows: -
Name of the Statute |
Nature of Dues |
period to which the amount relates |
Forum where dispute pending |
Demand Amount (Rs. In lakhs) |
Amount Deposited (Rs. In Lakhs) |
UP Entry Tax Act, 2007 |
Entry Tax |
2008-2016 |
Commercial Tax Tribunal, Agra |
79.91 |
- |
2013-2014 |
Appeal in process to file |
18.50 |
- |
||
UP VAT ACT, 2008 |
VAT |
2007-2008 |
Commercial Tax Tribunal, Agra |
50.48 |
- |
2010-2016 |
Additional Commissioner, Grade II, Agra |
711.33 |
- |
||
2013-2014 |
Appeal Yet to be Filed |
704.68 |
- |
||
Uttarakhand VAT Act, 2005 |
VAT |
2005-2012 |
Joint Commissioner Haldwani |
211.04 |
- |
2013-2014 |
Appeal Yet to be filed |
87.74 |
- |
||
Haryana VAT ActRs.2003 |
VAT |
2010-2012 |
Taxation Tribunal, Chandigarh |
34.75 |
- |
2010-2012 |
Dy. Excise and Taxation Officer, Karnal |
22.20 |
- |
||
Central Excise & Service Tax Act, 1994 |
Service Tax |
2003-2006 |
CESTAT Ludhiana |
171.43 |
- |
Central Excise & Service Tax Act, 1994 |
Service Tax |
2005-2017 |
CESTAT Kanpur |
526.90 |
- |
Income Tax ActRs.1961 |
Income Tax |
2005-12 |
Under Time Limitation |
1125.93 |
600.00 |
Labour Welfare ActRs.1953 |
Labour Cess |
2010 |
Honâble MP High Court |
268.25 |
2.69 |
(viii) According to the records of The Company examined by us and the information and explanations given to us, in our opinion, The Company has not defaulted in repayment of its dues to Banks/ Financial Institution.
(ix) As per the information and explanation given to us and on the basis of our examination of the records, during the year, money raised in financial year 2015-16 by way of Initial Public Offer and the amount have been utilize for the purpose for which they were obtained. We have verified the disclosure made by the management in the financial statement. The term loan amounts have been applied for which they have been obtained.(Refer note no. 54 to the financial statements)
(x) During the course of our examination of the books and records of The Company carried out in accordance with the generally accepted auditing practices in India, we have neither come across any instance of fraud on or by The Company noticed or reported during the year, nor have we been informed of such case by the management.
(xi) As per the information and explanation given to us and on the basis of our examination of the records, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) The Company is not Nidhi Company therefore this clause is not applicable to the company.
(xiii) As per the information and explanation given to us and on the basis of our examination of the records, The Company has transacted with the related parties which are in compliance with sections 177 and 188 of Companies Act, 2013 and the details have been disclosed in the financial statements refer note no. 43 to the financial statements.
(xiv) The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review.
(xv) As per the information and explanations given to us and on the basis of our examination of the records, The Company has not entered into any non-cash transactions with directors or persons connected with him.
(xvi)The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Therefore this clause is not applicable to the company.
For S.S. Kothari Mehta & Co. Purushottam Agrawal &Co.
Chartered Accountants Chartered Accountants
Firm Registration no. 000756N Firm Registration. no. 000731C
(Neeraj Bansal) (Sanjay Agarwal)
Partner Partner
Membership No. : 095960 Membership No. : 072696
Place: Agra
Date: May 24, 2017
Mar 31, 2016
To
The Members of
PNC INFRATECH LIMITED
Report on the Financial Statements
We have audited the accompanying Financial Statements of PNC INFRATECH LIMITED ("the Companyâ) which comprises the Balance Sheet as at 31st 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 Financial statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Actâ) with respect to 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 principles generally accepted in India, including the Accounting Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation, and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatements, 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 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 the material misstatement of the financial statements, whether due to error or fraud. In making those risk assessments, the auditor considers internal control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and 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 financial statements.
opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2016 and its profit and its cash flows for the year ended on that date.
Emphasis of Matter
Without qualifying, we draw attention to note no. 47 of the financial statement stating that Change in revenue recognition on the basis of completion linked to certified completion to physical completion of work as acknowledged by the client. The impact of change in accounting policy, while not ascertainable, is expected to be negligible.
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 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;
2. As required by section 143(3)of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b. In our opinion proper books of account as required by law have been kept by the Company, so far as appears from our examination of those books;
c. The Balance Sheet, Statement of Profit and Loss and Cash Flow Statement dealt with by this Report are in agreement with the books of account;
d. In our opinion, the 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 2016, and 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 - B ".
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 litigation on its financial position in its financial statements- Refer Note34 to the financial statements;
ii) As explained to us, there is not any material foreseeable losses, on long term contracts, therefore the Company has not made any provision, required under the applicable law or accounting standards;
iii) As informed, there has been no amount required to be transfer, to the Investor Education and Protection Fund by the Company.
(I) In Respect of Fixed Assets
(a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) As explained to us, the fixed assets are physically verified by the management 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. According to information and explanation given to us, the discrepancies noticed on current phase of physical verification were not material.
(c) The title deed of immovable property is held in the name of the company based on certificate, as certified by the management.
(II) In Respect of inventories
(a) The inventories of the Company have been physically verified by the management during the year.
(b) In our opinion and according to the information & explanations given to us, the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size and nature of the business of the Company.
(c) In our opinion and according to the information & explanations given to us, the Company is maintaining proper records of inventory. During the year, the physical verification was conducted at various sites and no material discrepancies have been noticed. The process of recording of physical verification needs to be further strengthened considering the expansion and nature & cycle of various projects.
(III) In respect of unsecured Loan
(a) As informed to us, the Company has granted unsecured interest free loans to its three subsidiaries & an associate and interest bearing loan to a subsidiary, covered in the register maintained under section 189 of the Companies Act, 2013, the balance outstanding is RS,7626.24 Lacs and RS,4855.22 Lacs (including interest) respectively.
(b) The tenure of agreement period of repayment are six months from the date of disbursement or receipt of grant/annuity, the receipt of principle amount as explained it will be recovered once the payment received by borrower from respective authority.
(c) In case of one subsidiary company there is overdue interest of RS,517.46 Lacs. As explained the company is pursuing for its recovery.
(iv) The loans, investments, guarantees an pledge of securities given to/for subsidiaries/associates/joint ventures are in compliance of section 185 and 186 of the Companies Act, 2013 as these are covered under exceptions as provided in section 185 and 186 of the Act, and are within the prescribed limits.
(v) The Company has not accepted any deposits from the public within the meaning of directives issued by the Reserve Bank of India and provisions of sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under.
(vi) We have broadly reviewed the books of account relating to materials, Labour and other items of cost maintained by the Company as specified by the Central Government of India under section 148(1) of the Companies Act, 2013 and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have not made a detailed examination of the records with a view to determine whether they are accurate and complete.
(vii) In Respect of Statutory Dues
(a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular and is in process of aligning with changing regulations, in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees'' State Insurance, Income-Tax, Sales Tax/VAT/Work Contract Tax, Service Tax, Customs Duty, Excise Duty, Cess and other material statutory dues, as applicable, with the appropriate authorities except the wealth tax payable of RS,13.39Lacs outstanding for more than six months at the balance sheet date.
(b) According to the information and explanations given to us and the records of the Company examined by us, the particulars of dues of Income-Tax, Sales-Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Value added tax and Cess as at March 31, 2015 which have not been deposited on account of disputes, are as follows
Name of Statute |
Nature of dues |
period to which Amt. relates |
Forum where dispute is pending |
Demand Amount (RS, in Lacs) |
Amount deposited (RS, in Lacs) |
MP Entry Tax Act, 1976 |
Appellate Tribunal & challenge Entry Tax 2007-2012 the constitution validity with 181.48 Hon''ble Supreme Court of India |
46.33 |
|||
Rajasthan Entry Tax Act, 2007 |
Entry Tax |
2012-2016 |
Hon''ble Supreme Court of India |
101.782 |
- |
UP Entry Tax Act, 2007 |
Entry Tax |
2004-2014 |
Hon''ble Supreme Court of India |
480.89** |
6 00 * |
2008-2015 |
Additional Commissioner Grade II Appeal, Agra |
95.48 |
- |
||
UP Trade Tax, 1948 |
Sale Tax |
2006-201 1 |
Assessing Officer, Commercial Tax Deptt., Agra |
396.55 |
- |
2013-2014 (Up to Dec-13) |
Additional Commissioner Grade II (Appeal Commercial Tax Agra) |
10.55 |
- |
||
UP VAT ACT, 2008 |
VAT |
2006-2012 |
Appellate Tribunal |
127.32 |
14.99 |
2007-2013 |
Hon''ble Allahabad High Court |
1,061.46** |
- |
||
2011-13 |
Additional Commissioner Grade II, Appeal, Agra |
1227.42 |
- |
||
2014-2015 |
Additional Commissioner |
4.15 |
- |
||
Uttarakhand VAT Act, 2005 |
VAT |
2005-2009 |
First appellate |
34.52 |
- |
2007-2012 |
Joint Commissioner Appeals |
176.52 |
- |
||
MP VAT Act, 2002 |
VAT |
2009-2012 |
First appellate |
41.91 |
4.50 |
Haryana VAT Act'' 2003 Central Excise & Service Tax Act, 1994 |
VAT |
2010-12 |
Taxation Tribunal Haryana |
34.75 |
|
2005-06 |
CESTAT , New Delhi |
339.29 |
- |
||
Service Tax |
2003 - 2006 |
CESTAT , Ludhiana |
164.10 |
- |
|
Income Tax Act, 1961 |
Income Tax |
2005-2012 |
Commissioner (Appeal) of IT, Agra |
1,125.93 |
600.00 |
Labour Welfare Act, 1953 |
Labour Cess |
2010 |
Hon''ble MP High Court |
268.85 |
2.69 |
Total |
5,872.95 |
736.51 |
(viii) According to the records of the Company examined by us and the information and explanations given to us, in our opinion, the Company has not defaulted in repayment of its dues to Banks/ Financial Institution.
(ix) As per the information and explanation given to us and on the basis of our examination of the records, the company has raised moneys by way of Initial Public Offer and the amount have been applied for the purpose for which they were obtained pending utilization the amount parked in designated escrow account and short term fixed deposit for further utilization in next year. We have verified the disclosure made by the management in the financial statement. The term loan amounts have been applied for which they have been obtained.( Refer note no. 50 to the financial statements).
(x) During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India, we have neither come across any instance of fraud on or by the Company noticed or reported during the year, nor have we been informed of such case by the management.
(xi) As per the information and explanation given to us and on the basis of our examination of the records, the managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013. (referee note no. 45 to the financial statements).
(xii) The company is not Nidhi Company, therefore this clause is not applicable to the company
(xiii) As per the information and explanation given to us and on the basis of our examination of the records, the company has transacted with the related parties which are in compliance with sections 177 and 188 of Companies Act, 2013 and the details have been disclosed in the financial statements refer note no. 38 to the financial statements.
(xiv) The company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review.
(xv) As per the information and explanations given to us and on the basis of our examination of the records, the company has not entered into any non-cash transactions with directors or persons connected with him.
(xvi) The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934. Therefore this clause is not applicable to the company.
Report on the Internal Financial Controls under Clause (i) of sub-section 3 of section 143 of the Companies Act, 2013 ("the Act")
We have audited the internal financial controls over financial reporting of PNC INFRATECH LIMITED ("the Company") as of March 31, 2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on "the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India". These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditor''s Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2)provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion based on summarized observations on Internal Financial Control Report, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were generally operating effectively as at March 31, 2016, based on "the internal control over financial reporting system & procedures, criteriaâs established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India".
For S.S.Kothari Mehta & Co. For Purushottam Agrawal & Co.
Chartered Accountants Chartered Accountants
Firm Reg. No. 000756N Firm Reg. No. : 000731C
(Neeraj Bansal) (Sanjay Agarwal)
Partner Partner
Membership No. 95960 Membership No. 72696
Place: Agra
Date: May 27, 2016
Mar 31, 2015
We have audited the accompanying Financial Statements of PNC INFRATECH
LIMITED ("the Company") which comprises the Balance Sheet as at 31st
March, 2015, 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 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 financial statements that gives a true and
fair view of the financial position, financial performance and cash
flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Standards
specified under section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes
maintenance of adequate accounting records in accordance with the
provisions of the Act for safeguarding of the assets of the Company and
for preventing and detecting frauds and other irregularities; selection
and application of appropriate accounting policies; making judgments
and estimates that are reasonable and prudent; and design,
implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view
and are free from material misstatements, 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 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 the material misstatement of the financial statements,
whether due to error or fraud. In making those risk assessments, the
auditor considers internal control relevant to the Company's
preparation of the financial statements that give a true and fair view
in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on
whether the Company has in place an adequate internal controls system
over financial reporting and the operating effectiveness of such
controls. An audit also includes evaluating the appropriateness of
accounting policies used and 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 financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India, of the state of affairs of the Company as
at 31st March, 2015 and its profit and its cash flows for the year
ended on that date.
Emphasis of Matter
Without qualifying, we draw attention to note no. 47 of the
financial statement stating that pursuant to schedule II of The
Companies Act 2013 (The New Act), during the year ending March 31,
2015, company has charged the depreciation based on useful life stated
in schedule II of the Companies Act 2013, and is on pro-rata basis for
addition and deletions. In case of Plant & Machinery based on technical
estimate (excluding Cranes & Earthmoving Equipments), the useful life
is more than as prescribed in Schedule II. Due to this change, the
depreciation for the current year is more by Rs.64.45 Lacs as compared
to depreciation as per the Companies Act 1956 and the carrying value of
Rs.164.66 Lacs assets whose life have already expired as per schedule
II, have been adjusted from opening general reserve.
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 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 143(3)of the Act, we report that:
a. We have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit;
b. In our opinion proper books of account as required by law have been
kept by the Company, so far as appears from our examination of those
books;
c. The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d. In our opinion, the 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, and 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 litigation on its
financial position in its financial statements- Refer Note 34 to the
financial statements;
ii) As explained to us, there is not any material foreseeable losses,
on long term contracts, therefore the Company has not made any
provision, required under the applicable law or accounting standards;
iii) As informed, there has been no amount required to be transfer, to
the Investor Education and Protection Fund by the Company.
ANNEXURE TO THE AUDIT REPORT to the pnc infratech limited
Referred to in paragraph 1 of report on other legal and regulatory
requirement's paragraph of our report on the financial statement of
even date,
(1) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) As explained to us, the fixed assets are physically verified by the
management 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. According to information and explanation
given to us, the discrepancies noticed on physical verification were
not material and have been properly dealt within the books of account.
(2) (a) According to the information & explanations given to us, the
management has physically verified the inventory during the year to a
reasonable extent except material in transit which has been
subsequently verified. The Company is in process of covering all
material items. Further we are explained that there are no items,
either in control of management or lying with third party, for which
physical verification was not done.
(b) In our opinion and according to the information & explanations
given to us, the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size and nature of the business of the Company.
(c) In our opinion and according to the information & explanations
given to us, the Company is maintaining proper records of inventory.
During the year, the physical verification was conducted at various
sites and no material discrepancies have been found and for other
discrepancies considered reasonable have been adjusted in books of
account. The process of recording of physical verification needs to be
further strengthened considering the nature and cycle of various
projects.
(3) (a) As informed to us, the Company has granted unsecured interest
free loans to its three subsidiaries & an associate and interest bearing
loan to a subsidiary, covered in the register maintained under section
189 of the Companies Act, 2013, the balance outstanding is H7152 Lacs
and H199.74 Lacs respectively.
(b) The tenure of agreement period of repayment are six month from the
date of disbursement or receipt of grant/annuity , the receipt of
principle amount as explained it will be recovered once the payment
received by borrower from respective authority.
(c) In case of one subsidiary company there is overdue interest of
H221.94 Lacs. As explained the company is pursuing for its recovery.
(4) According to the information and explanations given to us, there
are adequate internal control procedures commensurate with the size of
the Company and the nature of its business with regard to purchase of
inventory and fixed assets and with regard to sale of goods and
rendering of construction related services. In case of certain
specialized specified construction related material items purchased and
service rendered, we are explained that they are of special nature and
suitable alternative sources did not exist for obtaining comparable
quotations during the course of our audit, and examination of the books
and records of the Company and according to the information and
explanations given to us, we have neither come across nor have been
informed of any continuing failure to correct major weaknesses in the
aforesaid internal control system.
(5) The Company has not accepted any deposits from the public within
the meaning of directives issued by the Reserve Bank of India and
provisions of sections 73 to 76 or any other relevant provisions of the
Companies Act, 2013 and the rules framed there under.
(6) We have broadly reviewed the books of account relating to
materials, Labour and other items of cost maintained by the Company as
specified by the Central Government of India under section 148(1) of
the Companies Act, 2013 and are of the opinion that prima facie, the
prescribed accounts and records have been made and maintained. We have
not, however, made a detailed examination of the records with a view to
determine whether they are accurate and complete.
(7) (a) According to the information and explanations given to us and
the records of the Company examined by us, in our opinion, the Company
is generally regular and is in process of aligning with changing
regulations, in depositing undisputed statutory dues including Provident
Fund, Investor Education and Protection Fund, Employees' State
Insurance, Income-Tax, Sales Tax/VAT/Work Contract Tax, Service Tax,
Customs Duty, Excise Duty, Cess and other material statutory dues, as
applicable, with the appropriate authorities except out of total wealth
tax payable of H13.39 Lacs at the balance sheet date, out of which
outstanding for more than six months is H9.89 Lacs at the balance sheet
date.
(b) According to the information and explanations given to us and the
records of the Company examined by us, the particulars of dues of
Income-Tax, Sales-Tax, Wealth Tax, Service Tax, Customs Duty, Excise
Duty, Value added tax and Cess as at March 31, 2015 which have not been
deposited on account of disputes, are as follows- Demand Amount Amount
Deposited
Name Of Nature of Period to Forum where
Statute Dues which Amt. Dispute is
relates pending
2007-08, Appellate
MP Entry Tax Entry 2008-09, Tribunal &
Act, 1976 Tax 2009-10, challenge the
2010-11, constitution
2011-12 validity with
Hon'ble Supreme
Court of India
UP Entry Tax Entry 2004-05 to Hon'ble Supreme
Act, 2007 Tax 2013-14 Court of India
UP Entry Tax Entry September Hon'ble Supreme
Act, 2007 Tax 2014 to Court of India
December
2014
Rajasthan Entry 2009-10 to Assessing
Entry Tax 2014-15 Officer,
Tax Act, Commercial
2003 Tax Deptt.,
Rajasthan
2007-08 Assessing
Officer,
Commercial Tax
Deptt., Agra
Assessing
Officer,
Commercial Tax
Deptt., Agra
UP Trade Sale Tax 2006-2007 Assessing
Tax, 1948 Officer,
Commercial Tax
Deptt., Agra
2010-2011
2013-2014 Additional
(Upto Dec-13) Commisioner
Grade II
(Appeal
Commercial
Tax Agra)
2006-07 TO Appellate
2008-09 Tribunal
2014 to 2015 Additional
2007- 08 Commissioner
(1.4.2007- Hon'ble
UP VAT VAT 31.12.2007) Allahabad High
ACT, 2008 Court
2010-11 Appellate
Tribunal
2008-09 Hon'ble
to 2012-13 Allahabad
High Court
2011-12 Appellate
Tribunal
2008-09 First appellate
2005-06 to First
2006-07 appellate
Uttarakhand VAT 2007-2008 Joint
VAT Act, Commissioner
2005 Appeal
VAT 2010-2011 Joint
Commissioner
Appeal
2013-2014, SLP Filed in
2014-2015 High Court
2009-2010 Joint
Commissioner
Appeals
2010-11 First
appellate
MP VAT VAT 2011-12 First
Act, 2002 appellate
2009-10 First
appellate
Central Service 2005-06 CESTAT,
Excise Tax 2003 to 2006 New Delhi
& Service CESTAT,
Tax Act, Ludhiana
1994
Income Tax Income 2005-06 Commissioner
Act, 1961 Tax to 2011-12 (Appeal)of
IT, Agra
Labour Labour 2010 Hon'ble MP
Welfare Cess High Court
Act, 1953
Total
Name Of Nature Demand Amount
Statute Dues Amount Deposited
(H in Lacs) (H in Lacs)
MP Entry Tax Entry 183.98 46.33
Act, 1976 Tax
UP Entry Tax Entry 480.89 68.00*
Act, 2007 Tax
UP Entry Tax Entry 248.29** 0
Act, 2007 Tax
Rajasthan Entry
Entry Tax 105.59** 33.01
Tax Act,
2003
12.87 0
38.10 -
UP Trade Sale Tax 189.36 -
Tax, 1948
10.55 -
125.52 13.19
4.15 -
176.76 -
UP VAT VAT
ACT, 2008 1.40 1.40
885.00** -
0.40 0.40
Uttarakhand VAT 20.07 -
VAT Act, 14.45 -
2005 174.82 -
VAT
2.49 -
397.25** -
MP VAT VAT 6.63 -
Act, 2002
16.61 4.50
10.16 -
15.14 -
323.96 -
Central Service 157.21 -
Excise Tax
& Service
Tax Act,
1994 *
Income Tax Income 1125.93 -
Act, 1961 Tax
Labour Labour 268.85 2.69
Welfare Cess
Act, 1953
Total 4996.43 169.52
* Includes Bank Guarantee of H34 lacs
** Amount on estimated basis
(c) As informed there has been no amount required to be transfer, to
the Investor Education and Protection Fund by the Company.
(8) The Company does not have accumulated losses as at 31st March,
2015. The Company has not incurred cash losses during the current
financial year covered by our audit and in the immediately preceding
financial year.
(9) According to the records of the Company examined by us and the
information and explanations given to us, in our opinion, the Company
has not defaulted in repayment of its dues to Banks or Financial
Institution.
(10) In our opinion, and according to the information and explanations
given to us, and based on written representation from the Company, the
Company has given corporate guarantee for loans taken by one of its
associates (refer note 34) and terms and conditions of such corporate
guarantee is not prima facie prejudicial to the interest of the
company. The Company has also given general business undertakings for
shortfall of funds availed for facilities in subsidiaries and
associates for BOT (build, operate and transfer) projects.
(11) In our opinion, and according to the information and explanations
given to us, the term loans availed by the Company were prima facie
applied by the Company during the year for the purpose for which the
loan was obtained
(12) During the course of our examination of the books and records of
the Company carried out in accordance with the generally accepted
auditing practices in India, we have neither come across any instance
of fraud on or by the Company noticed or reported during the year, nor
have we been informed of such case by the management.
For S.S.Kothari Mehta & Co. For Purushottam Agrawal & Co.
Chartered Accountants Chartered Accountants
Firm Reg. No. 000756N Firm Reg. No. : 000731C
(Neeraj Bansal) (Sanjay Agarwal)
Partner Partner
Membership No. 95960 Membership No. 72696
Place: Agra
Date: June 25, 2015