Mar 31, 2018
Independent Auditor''s Report on the Standalone lnd AS Financial Statements
To The Members of Consolidated Construction Consortium Ltd.
We have audited the accompanying standalone Ind AS financial statements of Consolidated Construction Consortium Limited
("the Company"), which comprise the Balance Sheet as at 31stMarch 2018, the Statement of Profit and Loss (including other comprehensive income), the Statement of Changes in Equity, the Cash Flow statement for the year then ended and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Ind AS Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation and presentation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards specified under Section 133 of the Act, read with Rule 4 of the Companies (Indian Accounting Standards) Rules, 2015. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under and the Order issued under section 143(11)of the Act.
We conducted our audit in accordance with the Standards on Auditing specified under Section143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments; the auditor considers internal financial control relevant to the Company''s preparation of the standalone lnd AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us.the standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India including the Ind AS, of the state of affairs (financial positions) of the Company as at March 31, 2018 and its loss (financial performance including other comprehensive income) , its cashflows and the changes in equity and for the year ended on that date.
Material Uncertainty Related to Going Concern
We draw your attention to Note No. 47 of the standalone financial statements, which indicates that the company has negative net worth as at 31.03.2018. Further, it has incurred net cash losses in the current financial year and in the immediate preceding financial year. These conditions may cast doubt about the Company''s ability to continue as a going concern. However, the Company is looking out for potential investors to raise cash by selling the non-core assets held by its subsidiaries or otherwise and with approved S4A scheme in place, the Company expects improvemen tin the overall level of Operations ln view thereof and expecting favourable market conditions in future, the Standalone Financial Statements have been prepared on a "going concern basis" and no adjustment has been made to the carrying value of assets and liabilities. Our Report is not modified in respect of this matter.
Emphasis of Matters
(a) We draw attention to Note No. 8(a) & 8(b) of the standalone financial statements, regarding uncertainties relating to recoverability of trade receivables overdue for more than one year amounting to Rs.11731.84 lakhs (net of provisions of Rs.10740.27lakhs) which according to the managementis fully recoverable. Further the recoverability of trade receivables which are under arbitration amounting to Rs. 36642.92 lakhs which according to the Management will be awarded fully in Company''s favour on the basis of the contractual tenability, progress of arbitration and legal advice. Accordingly, no adjustment has been made in the Ind AS Standalone Financials Statements.
(b) We draw attention to Note No.8(c) of the standalone financial statements regarding claims made to clients amounting to Rs. 10664.53 lakhs (net of expected credit loss of Rs. 53.59 lakhs) which were based on the on the terms and conditions implicit in the Construction Contracts in respect of closed/suspended/under construction projects. These claims are mainly in respect of cost over run arising due to suspension of work, client caused delays, changes in the scope of work, deviation in design and other factors for which company is at various stages of negotiation/ discussion with the clients. On the basis of the contractual tenability, progress of negotiations/discussions.the management considers these receivables are recoverable. Accordingly.no further adjustment has been made in the Ind AS Standalone Financial Statements.
(c) We draw attention to Note No. 18.3 of the standalone financial statements regarding default committed by the Company in respect of repayment of Optionally Convertible Debentures as per the terms of approved S4A scheme and in respect of repayment of other restructured term loans.
Our opinion is not modified in respect of the above stated matters. Other Matters
The comparative financial information of the company for the year ended March 31, 2017 and the transition date opening balance sheet as at April 01, 2016 prepared in accordance with Ind AS included in these Standalone Ind AS financial statements, are based on the previously issued statutory standalone financial statements prepared in accordance with the Companies (Accounting Standards) Rules, 2006 audited by the predecessor auditor whose report for the year ended March 31, 2017 and March 31, 2016 dated May 30, 2017 and May 25, 2016 respectively expressed an unmodified opinion on those standalone financial statements, as adjusted for the differences in the accounting principles adopted by the company on transition to the Ind AS, which have been audited by us.
Our Opinion is not modified in respect of this matter. Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we enclose 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) Inour 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, the Cash Flow Statement and the Statement of changes in Equity dealt with in this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards specified under Section133 of the Act.read with Rule 4of the Companies (Indian Accounting Standards) Rules, 2015;
(e) The matters described under "Emphasis of Matters" paragraph, in our opinion, may have an adverse effect on the functioning of the Company;
(f) On the basis of the written representations received from the directors as on March 31, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018 from being appointed as a director in terms of Section 164(2)of the Act;
(g) 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";Our report expresses a qualified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
(h) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Notes to the standalone financial statements;
(ii) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
(iii)There has been a delay of one day in transferring amounts that were due to be transferred, to the Investor Education and Protection Fund by the Company during the year ended March 31,2018.
For Sundar Srini & Sridhar |
Chartered Accountants |
Firm Registration Number:004201S |
S Sridhar |
Partner |
Membership Number:025504 |
Place: Chennai |
Date:May 29,2018 |
Annexure ''A'' Referred to in Paragraph 1 under the heading ''Report on Other Legal and Regulatory Requirements'' of our report of even date to the members of the Company for the year ended March 31, 2018
(i) a. The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b)The fixed assets of the company have been physically verified by the management at periodic intervals, which in our opinion is reasonable. According to the information and explanations given to us.no material discrepancies have been noticed on such verification.
(c) According to the information and explanations given to us, the records examined by us and based on the examination of the conveyance deeds provided to us, we report that, the title deeds, comprising all the immovable properties of land and buildings which are freehold, are held in the name of the Company as at the balance sheet date.
(ii) The inventory has been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable. As per the information and explanations given to us, no material discrepancies were noticed on physical verification of inventory.
ill. According to the information and explanations give to us and on the basis of our examination of records, the Company has granted unsecured interest free loans,to companies covered in the register maintained under section 189 of the Companies Act, 2013. In our opinion, the terms and conditions under which the loans were granted to subsidiaries were not prejudicial to the interest of the Company. In the absence of specific schedule for repayment, we could not comment on the regularity of repayment of loan.
iv. The Company has not granted any loans or provided any guarantees or security to the parties covered under section 185 of the Act. The Company, being engaged in the business of providing infrastructural facilities, Section 186 of the Act is not applicable in respect of loans given / guarantees provided to other body corporates to by virtue of exemption provided under sub-section (11) of the said section of the Act.
v. The Company has not accepted any deposits from the public to which the provisions of section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the rules framed there under apply.
vi. The maintenance of cost records has been specified by the Central Government under Section 148(1) of the Companies Act, 2013 for the product produced by the Company. We have broadly reviewed the cost records maintained by the Company pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended and prescribed by the Central Government under Sub-section (1) of Section 148 of the Companies Act, 2013, and are of the opinion that, prima facie, the prescribed cost records have been made and maintained. However, we have not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
vii. (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company.in our opinion, the Company is not regular in depositing the undisputed statutory dues in respect of Provident funds, Income Tax sales- tax, value added tax, service tax, goods and service tax, cess and other material statutory dues, as applicable with the appropriate authorities. There have been significant delays in a large number of cases in depositing these dues with the appropriate authorities. Further, there were no undisputed amounts payable in respect of the statutory dues outstanding as on March 31, 2018 for a period of more than six months from the date they became payable except for the following:
Name of the Statute |
Nature of the Due |
Period to which relates to |
Rs. in Lakhs |
The Jammu and Kashmir Value Added Tax, 2005 |
Tax on Sales u/s 13 |
Jun-17 |
22.17 |
b) According to the information and explanations given to us, there are no dues of sales tax, service tax, duty of customs, duty of excise, value added tax which have not been deposited with the appropriate authorities on account of any dispute except for the dues attached in Appendix 1 to this report.
viii. According to the information and explanations given to us, the company has defaulted in repayment of loans taken from banks and financial institutions as at the year-end, as per details attached in Appendix 2 to this report
ix. The Company has not raised any money by way of initial public offer or further public offer (including debt instruments) or term loans during the year.
x. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company or no material fraud on the Company by its officers or employees has been noticed or reported during the year.
xi. According to the information and explanations given to us and based on examination of the records of the Company, the Company, during the year, has not provided any managerial remuneration.Accordingly, paragraph 3 (xi) of the Order is not applicable to the Company.
xii. In our opinion and according to the information and explanation given to us,the Company is not a Nidhi Company . Accordingly, paragraph 3 (xii) of the Order is not applicable to the Company.
xiii. In our opinion and according to the information and explanations given to us, the Company is in compliance with Section 177 and 188 of the Companies Act, 2013 where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the Ind AS standalone financial statements as required by the applicable accounting standards.
xiv. During the year, the Company has not made any preferential allotment or private placement of shares or fully or partly paid convertible debentures. However, during the year the Company had made allotment of optionally convertible debentures (OCDs) to the lenders pursuant to the Scheme for Sustainable Structuring of Stressed Assets (S4A Scheme) adopted by the Joint Lenders'' Forum as stated in Note 18.2 to the Standalone Ind AS Financial Statements. In respect of the same, in our opinion, the Company has complied with the provisions of Section 42 of the Act and rules framed thereunder. Further, it is to be noted that no amounts were raised from the allotments made during the year and that the outstanding loans along with accrued interest as on the reference date (as defined in the Master Restructuring Agreement), i.e. November 11 2016, had been converted into OCDs.
xv. In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its Directors or persons connected to its directors and hence provisions of section 192 of the Companies Act, 2013 are not applicable to the Company.
xvi. The Company is not required to be registered under section 45-lAof the Reserve Bank of India Act, 1934.
Appendix 1 |
As referred to in para vii (b) of the |
Disputed statutory liabilities |
Annexure- A to the lndependent Auditors Report
Name of the Statue |
Nature of the Dispute |
Forum where the dispute is pending |
Periods to which relates |
(Rs, in lakhs) |
Income Tax |
a. Disallowance of Claim of deduction of Retention |
Commissioner of lncome |
2009-10 |
8179.78* |
Act, 1961 |
Monies |
Tax(Appeals)-1,Chennai |
||
b. Disallowance of Difference in Work in Progress |
||||
*Of the said demand, a sum of Rs.2356.67 lakhs has been adjusted refunds due for various assessment years |
||||
Income Tax |
Re-Opening of lncome Tax Assessment u/s 143 (3) of |
Assistant Commissioner |
2009-10 |
232.83 |
Act, 1961 |
the lncome Tax Act |
of Income-tax, |
||
Non-Corporate Circle-1 , |
||||
Chennai-600034. |
||||
Kerala Value |
Sales made to SEZ claimed as exempt (Extension of |
Appellate Assistant |
2005-06 |
55.10 |
Added Tax,2003 |
benefit in KGST Sought) |
Commissioner, Cochin |
||
Karnataka Value |
Disallowance of Margin on Sub-contractportion, |
Karnataka Appellate Tribunal |
2009-10 |
34.22 |
Added Tax,2003 |
Security Service and repair service |
atBengaluru-560001. |
||
Tamil Nadu |
lnclusion of turnover of SEZ under Section 6 TNVAT |
Commercial Tax Officer, |
Jan2007to |
407.85 |
Value Added Tax,2006 |
and Stock Transfers |
Chennai |
Mar2008 |
|
Reversal of lnput Tax Credit for SEZ projects, Stock |
Commercial Tax Officer, |
Apr2008to |
552.56 |
|
Transfers, Unregistered Purchases and scheduled rate |
Chennai |
Mar 2010 |
||
variation in RMC |
||||
Rajasthan |
Tax is already discharged on receipt basis subsequent |
The Appellate Authority, |
2008-09 |
9.51 |
Value Added |
year but tax is levied based on WCT TDS |
Commercial Taxes |
||
Tax,2006 |
(Appeal)-1 -Jaipur |
|||
Tax is already discharged on receipt basis subsequent |
2009-10 |
8.38 |
||
year but tax is levied based on WCT TDS |
||||
West Bengal |
The Sub Contractor expenditure is disallowed |
The Joint Commissioner , |
2010-11 |
160.60 |
Value Added |
Commercial Taxes, Alipore |
|||
Tax,2006 |
Charge,Kolkata-700034. |
|||
Appeal filed with Revision |
||||
Board Case was not yet |
||||
listed for hearing. |
||||
The expenditure is added back to turnover |
Demand Assessment Order |
2012-13 |
167.62 |
|
received from DCT O-Salt |
||||
Lakecharge. We moved to |
||||
Tribunal. Tribunalh as issued |
||||
interiminjunction against |
||||
demand notice. Case |
||||
pending with Tribunal. |
||||
Central Excise |
Levy of Excise Duty on manufacture of Ready Mix |
Customs, Excise and |
April 2011 to |
14.78 |
Act, 1944 |
Concret evide Notification1/2011 dated 01.03.2011 for |
Service Tax Appellate |
Jan2012 |
|
removal from a Batching Plant located outside the |
Tribunal(CESTAT),Chennai |
|||
Project location and used exclusively for the project |
Feb2012to |
1.02 |
||
Mar 2012 |
||||
Mar-11 |
1.62 |
|||
July201 1to |
3.96 |
|||
Mar 2012 |
||||
April2012to |
25.05 |
|||
March 2013 |
||||
Commissioner of Central |
Aug 2012 TO |
4.59 |
||
Excise, (Appeals), |
Dec 2012 |
|||
New Delhi |
||||
Customs, Excise and Service |
May 2011 to |
10.07 |
||
Tax Appellate Tribunal |
Jan- 2013 |
|||
(CESTAT).Bangalore |
Name of the Statue |
Nature of the Dispute |
Forum where the disputeis pending |
Periods to which relates |
(Rs. in lakhs) |
The Assistant Commissioner |
Jan2013 to |
4.78 |
||
of Central Excise, Division- |
June2013 |
|||
VI.Nehru Place. New Delhi |
||||
Customs, Excise and Service |
April2013to |
16.36 |
||
Tax Appellate Tribunal |
March2014 |
|||
(CESTAT).Chennai |
||||
Finance Act, 1944 |
Service Tax demanded on Retention monies held by |
Customs, Excise and |
2008-09 |
446.21 |
(Service Tax) |
client as the same is yet to receive from Client by us, |
Service Tax Appellate |
||
Capital Goods used in SEZZ one and Wrong availment |
Tribunal(CESTAT),Chennai |
|||
of CVD inrespect of ''Schwing Boom Placer'' and |
2009-10 |
394.74 |
||
CENVAT Credit on Capital Good sutilized in discharge |
||||
Service Tax demanded on Retention monies held by |
Customs, Excise and |
2010-11 |
80.17 |
|
client as the same is yet to receive from Client by us, |
Service Tax Appellate |
|||
Capital Goods and Scaffolding Materials which are |
Tribunal(CESTAT),Chennai |
April 2011 to |
13.76 |
|
exclusively used in Airport |
June201 1 |
|||
Service Tax on Works Contract Service provided to |
Commissioner of Service |
Sep 2011 to |
93.07 |
|
M/s.Bangalore Metropolitan Transport Corporation, |
Tax. Chennai |
Sep 2012 |
||
Bangalore |
||||
Joint Commissioner. Service |
Oct2012to |
6.05 |
||
Tax ll Commissionerate, |
June2014 |
|||
Chennai. |
||||
Short Payment of Service Tax on Rebate Allowed by the |
Customs, Excise and |
April 2011 to |
41.07 |
|
Sub-Contractors |
Service Tax Appellate |
Sep 2012 |
||
Tribunal(CESTAT), Chennai |
||||
Oct2012to |
20.20 |
|||
Mar2014 |
||||
Assistant Commissioner of |
April2014to |
10.22 |
||
Service Tax. Chennai. |
Sep 2015 |
|||
Assistant Commissioner of |
October2015to |
12.91 |
||
Central Tax. Mylapore |
June2017 |
|||
Division, North |
||||
Commissionerate, Chennai |
||||
CENVAT Credi ton Capital Goods utilized in discharging |
Assistant Commissioner of |
April 2015 to |
3.24 |
|
Service Tax where Notification No.1/2006ST dated |
Central Tax.Mylapore |
June2017 |
||
01/03/2006is Availed |
Division North |
|||
Commissionerate, Chennai |
||||
Customs Duty,1962 |
Short payment of Customs Duty for import of Equipment on High Sea Sale |
Assistant Commissioner of |
2008-09 |
2.93 |
|
|
Customs (Group-V), |
||
Mumbai |
Appendix 2 |
As referred to in para viii of the Annexure- A to the Independent |
Auditors Report Details of Default in Repayment of Borrowings |
Principal & Interest Delay days : 0.01 % Optionally Convertible Debentures |
Particulars |
Amount & Period of Default |
|||
Principal Amt Due (in Lakhs) |
Principal Delayed Days |
Interest Amt Due (in Lakhs) |
Interest Delayed Days |
|
State Bank of India |
7,278.28 |
0-30 |
2.85 |
0-30 |
Bank of Baroda |
3,158.66 |
0-30 |
1.21 |
0-30 |
IDBI Bank Limited |
2,241.80 |
0-30 |
0.88 |
0-30 |
ICICI Bank Limited |
373.11 |
0-30 |
0.15 |
0-30 |
TATA Capital Financial Services Limited |
275.75 |
0-30 |
0.11 |
0-30 |
Principal & Interest Delay days: 12.65% Non Convertible debentures
Particulars |
Amount & Period of Default |
|||
Principal Amt Due (in Lakhs) |
Principal Delayed Days |
Interest Amt Due (in Lakhs) |
Interest Delayed Days |
|
TATA Capital Financial Services Limited |
42.44 |
0-270 |
26.85 |
0-30 |
TATA Capital Financial Services Limited |
42.44 |
270-360 |
- |
- |
Principal & Interest Delay days: Working Capital Term Loan -1 (WCTL-I)
Particulars |
Amount & Period of Default |
|||
Principal Amt |
Principal Delayed |
Interest Amt |
Interest Delayed |
|
Due (in Lakhs) |
Days |
Due (in Lakhs) |
Days |
|
State Bank of India |
- |
- |
6.25 |
0-30 |
Bank of Baroda |
2.16 |
0-180 |
1.89 |
0-30 |
IDBI Bank Limited |
0.90 |
0-270 |
1.97 |
0-30 |
ICICI Bank Limited |
0.41 |
0-30 |
Principal & Interest Delay days: Working Capital Term Loan II (WCTL-II)
Particulars |
Amount & Period of Default |
|||
Principal Amt |
Principal Delayed |
Interest Amt |
Interest Delayed |
|
Due (in Lakhs) |
Days |
Due (in Lakhs) |
Days |
|
State Bank of India |
- |
- |
13.09 |
0-30 |
Bank of Baroda |
13.41 |
0-180 |
11.71 |
0-30 |
IDBI Bank Limited |
18.72 |
0-180 |
48.26 |
0-90 |
Principal & Interest Delay days: Funded Interest Term Loan I (FITL-I)
Particulars |
Amount & Period of Default |
|||
Principal Amt |
Principal Delayed |
Interest Amt |
Interest Delayed |
|
Due (in Lakhs) |
Days |
Due (in Lakhs) |
Days |
|
State Bank of India |
- |
- |
5.82 |
0-30 |
Bank of Baroda |
1.78 |
0-180 |
1.55 |
0-30 |
IDBI Bank Limited |
0.74 |
0-180 |
1.91 |
0-90 |
TATA Capital Financial Services Limited |
8.12 |
0-270 |
5.03 |
0-30 |
TATA Capital Financial Services Limited |
8.12 |
270-360 |
- |
- |
Principal & Interest Delay days: Funded Interest Term Loan II (FITL-II)
Particulars |
Amount & Period of Default |
|||
Principal Amt |
Principal Delayed |
Interest Amt |
Interest Delayed |
|
Due (in Lakhs) |
Days |
Due (in Lakhs) |
Days |
|
IDBI Bank Limited |
2.55 |
0-180 |
6.57 |
0-90 |
Bank of Baroda |
1.82 |
0-180 |
1.59 |
0-30 |
State Bank of India |
- |
- |
1.57 |
0-30 |
Principal & Interest Delay days: Corporate Term Loans
Particulars |
Amount & Period of Default |
|||
Principal Amt |
Principal Delayed |
Interest Amt |
Interest Delayed |
|
Due (in Lakhs) |
Days |
Due (in Lakhs) |
Days |
|
State Bank of India -Corporate Loan I |
- |
- |
1.75 |
0-30 |
State Bank of India - Corporate Loan II |
- |
- |
3.21 |
0-30 |
Principal & Interest Delay days: Priority Corporate Loans
Particulars |
Amount & Period of Default |
|||
Principal Amt |
Principal Delayed |
Interest Amt |
Interest Delayed |
|
Due (in Lakhs) |
Days |
Due (in Lakhs) |
Days |
|
State Bank of India |
- |
- |
21.16 |
0-30 |
Bank of Baroda |
31.22 |
0-180 |
12.52 |
0-30 |
IDBI Bank Limited |
21.42 |
0-180 |
26.20 |
0-90 |
Principal & Interest Delay days: Funded Interest Term Loan IV (FITL-IV)
Particulars |
Amount & Period of Default |
|||
Principal Amt |
Principal Delayed |
Interest Amt |
Interest Delayed |
|
Due (in Lakhs) |
Days |
Due (in Lakhs) |
Days |
|
ICICI Bank Limited |
1.63 |
0-360 |
- |
- |
Principal & Interest Delay days: Cash Credit (CC) (Short Term Borrowings)
Particulars |
Amount Overdrawn & Period of Default |
|
Rs.in lakhs |
Delayed days |
|
Bank of Baroda |
85.90 |
0-30 |
ICICI Bank Limited |
9.30 |
0-30 |
IDBI Bank Limited |
187.95 |
0-90 |
Annexure ''B'' Referred to in paragraph 2 (f) under the heading ''Report on other legal and regulatory requirements'' of our report on even date on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act") to the members of the Company for the year ended March 31,2018
To the Members of Consolidated Construction Consortium Limited
We have audited the internal financial controls over financial reporting of Consolidated Construction Consortium Limited ("the Company"), as of March 31,2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Management''s Responsibility for lnternal 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 (ICAI). 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.
Auditors'' 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 "Guidance Note") and the Standards on Auditing as specified under section 143(10) of the Act to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting 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 judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. 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 in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the 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 inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Basis for Qualified Opinion
In our opinion, according to the information and explanations given to us and based on our audit, the following material weaknesses have been identified as at March 31,2018:
The Company did not have appropriate internal financial controls over:
(a) Assessment of expected credit loss/loss allowance of unbilled revenue, trade receivables and withheld amounts which are subject matters of various disputes /arbitration proceedings/ negotiations with the customers and contractors due to termination /for eclosure of contracts and other disputes;
(b) Controls over projects costs estimation and review of balance costs to complete in respect of work projects;
(c) customer acceptance, credit evaluation and establishing customer credit limits for sales and customers in respect of variations in contract work which may probably result in the Company recognising revenue without establishing reasonable certainty of ultimate collection, on criteria based on or 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.
A ''material weakness'' is a deficiency, or a combination of deficiencies, in internal financial control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company''s annual or interim financial statements will not be prevented or detected on a timely basis.
Qualified opinion
In our opinion, except for the possible effects of material weaknesses described in "basis of qualified opinion" paragraph above, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
We have considered the material weaknesses identified and reported above in determining the nature, timing and extent of audit tests applied in our audit of the standalone financial statements of the Company for the year ended March 31, 2018 and these material weaknesses have not affected our opinion on the standalone financial statements of the Company, however, we have drawn attention to certain matters in our report on the Ind AS standalone financial statements as discussed under the para Emphasis of Matters considering the weakness identified above.
For Sundar Srin i& Sridhar |
Chartered Accountants |
Firm Registration Number:004201S |
S Sridhar |
Partner |
Membership Number:025504 |
Place: Chennai - Date:May29,2018 |
Mar 31, 2016
To The Members of Consolidated Construction Consortium Ltd.
1. Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Consolidated Construction Consortium Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
2. Managementâs Responsibility for the Standalone Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation 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 misstatement, whether due to fraud or error.
3. Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. 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. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
4. Opinion
In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:
a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31,2016; and
b) in the case of the Statement of Profit and Loss, of the loss for the year ended on that date;
c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.
5. Emphasis of Matter
1. We draw your attention to Note 5.1 regarding financial condition and mitigating factors and preparation of financial statements on going concern basis by management. The financial statements do not include any adjustment in lieu of assertion in this regard.
2. We also draw your attention to Note 5.7 with regard to receivable sand provisions thereon made by the management based on the recoverability; Further status on the bank guarantees invoked by the clients in earlier years due to alleged contractual nonperformance and on-going legal/arbitration proceedings for which provisioning will be considered by the management based on the final outcome of the resolution of the proceedings.
Our opinion is not qualified/modified in respect of these matters.
6. Report on Other Legal and Regulatory Requirements
6.1 As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the âAnnexure Aâ statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
6.2 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 and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the directors and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 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 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 litigations on its financial position in its financial statements- refer Note 5.12 to the financial statements;
ii. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts;
Hi. There were no amounts which were pending to be transferred to the Investor Education and Protection Fund by the Holding Company and its Subsidiary Companies incorporated in India.
Annexure-A to the Independent Auditorsâ Report
Referred to in paragraph 6.1 of the Independent Auditorsâ Report of even date to the members of Consolidated Construction Consortium Limited on the standalone financial statements for the year ended March 31, 2016
(i) a. The company is maintaining proper records showing full particulars including quantitative details and situation of the fixed assets.
b. The company has a regular programme of physical verification of fixed assets in a phased manner at periodical interval. Pursuant to the program, certain assets were covered by physical verification during the year. In our opinion, the frequency of verification of the fixed assets is reasonable having regard to the size of the company and the nature its assets.
c. In our opinion and according to the information and explanation given to us, the title deed of immovable property being land is in the name of the Company. However the same is offered as Collateral for the loan taken by the Company.
(ii) As explained to us, the inventories including site materials, stores and construction aids have been physically verified by the management at reasonable intervals and informed that no material discrepancies were noticed on such physical verification;
(iii) According to the information and explanations given to us and records of the company examined by us, the Company has granted interest free unsecured loans to its subsidiary company and Step down subsidiaries companies covered in the register maintained under section 189 of the Companies Act, 2013. In the absence of any schedule of repayment we could not report on the overdue amounts as required under clause (iii) of the Order, 2013;
(iv) According to the information and explanation given to us, in respect of the loan granted, investments made and guarantees provided provisions of Sections 185 and Sections 186 of Companies Act 2013 have been complied with except for charging of Interest on the loans as required u/s.186(7) of the Act;
(v) The Company has not accepted any deposits from the public within the meaning of the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act and the rules framed there under.
(vi) We have broadly reviewed the books of account maintained by the Company in respect of services where, pursuant to the rules made by the Central Government of India, the maintenance of cost records has been prescribed under the Act been made and are of the opinion that prime 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 or 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 in depositing the undisputed statutory dues including provident fund, investor education and protection fund, employeesâ state insurance, income-tax, sales tax/Value Added Tax(VAT), wealth tax, service tax, customs duty, excise duty, cess and other material statutory dues as applicable with the appropriate authorities. There are no undisputed statutory dues which are in arrear for more than six month from the date it became due.
b. According to the information given to us, the particulars of dues of income-tax, sales-tax/Value Added Tax(VAT), wealth tax, service tax, customs duty, excise duty and cess as at March 31, 2016 which have not been deposited on account of a dispute are as follows:
(Rs. in lakhs)
Name of Statue |
Nature of Dispute |
Reference |
Amount |
Periods to which the amount relates (F.Y.) |
Forum where the disputes are pending |
|
Income Tax Act, 1961 |
Disallowance of certain expenditure and claims |
AO dated 28.12.2010 |
225.68*** |
2005-2006 |
High Court of Madras |
|
AO dated 28.03.2013 |
258.42 |
2009-10 |
Income Tax Appellate Tribunal |
|||
AO dated 31.03.2014 |
1708.98** |
2010-11 |
Commissioner of Income Tax (Appeals)-I, Chennai |
|||
AO dated 13.03.2015 |
88.51** |
2011-12 |
Commissioner of Income Tax (Appeals)-I, Chennai |
|||
AO dated 30.03.2016 |
584.30** |
2012-13 |
Commissioner of Income Tax (Appeals)-I, Chennai |
|||
Kerala VAT |
Sales made to SEZ claimed as exempt (Extension of benefit in KGST Sought) |
Assessment No. D/753/ 06/2005-06 dated 31.07.2008 |
55.10 |
2005-2006 |
Appellate Assistant Commissioner, Cochin |
|
Karnataka VAT |
Inputs Rejected by applying the Centum industries Judgment i.e input is taken in a particular tax period which is not relevant to that period |
Assessment Dated 31/03/2015 |
165.77 |
2010-2011 |
FAA (Joint Commissioner of Commercial Taxes Appeals - 3, Bangalore. |
|
Inputs Rejected by applying the Centum industries Judgment i.e input is taken in a particular tax period which is not relevant to that period |
Assessment dated 04/05/2015 |
173.89 |
2011-2012 |
FAA (Joint Commissioner of Commercial Taxes Appeals - 3, Bangalore. |
||
Inputs Rejected by applying the Centum industries Judgment i.e input is taken in a particular tax period which is not relevant to that period |
Assessment dated 12/05/2015 |
224.86 |
2012-2013 |
FAA (Joint Commissioner of Commercial Taxes Appeals - 3, Bangalore. |
||
Inputs Rejected by applying the Centum industries Judgment i.e input is taken in a particular tax period which is not relevant to that period |
Assessment dated 04/06/2015 |
180.86 |
2013-2014 |
FAA (Joint Commissioner of Commercial Taxes Appeals - 3, Bangalore. |
||
Disallowance of Margin on sub contract portion .Security service and repair service |
Order Dated 19.10.2010 |
34.20 |
2009-2010 |
Joint Commissioner of Commercial tax (Appeals) ,Banglore |
||
TNVAT |
Inclusion of turnover of SEZ under Section 6 TNVAT and Stock Transfers |
Based on Sworn Statement |
407.85 |
Jan. 2007 to March 2008 |
Commercial Tax Officer, Chennai |
|
Reversal of Input Tax Credit for SEZ projects, Stock Transfers, Unregistered Purchases and schedule rate variation in RMC |
Notice dated 28.11.2011 |
552.56 |
April 2008 to March 2010 |
Commercial Tax Officer, Chennai |
||
RVAT |
Tax is already discharged on receipt basis subsequent year but tax is levied based on WCT TDS |
Notice dated 26/03/2016 |
9.51 |
2008-2009 |
The Appellate Authority, Commercial Taxes (Appeal)-1 Jaipur |
|
Tax is already discharged on receipt basis subsequent year but tax is levied based on WCT TDS |
Notice dated 26/03/2016 |
8.38 |
2009-2010 |
The Appellate Authority, Commercial Taxes (Appeal)-1 Jaipur |
||
WB VAT |
The Sub Contractor expenditure is disallowed |
Notice dated 3/12/2015 |
160.6 |
2011-2012 |
The Joint Commissioner, Commercial Taxes, Alipore Charge, Kolkata -700034 |
|
The expenditure is added back to turnover |
Assessment order date 29/06/2015 |
167.62 |
2012-2013 |
West Bengal Taxation Tribunal,Salt Lake, Kolkata |
||
Customs Duty |
Short payment of Customs Duty for import of Equipment on High Sea Sale |
SCN 1908 dated 21.02.2013 |
2.93 |
2008-2009 |
Directorate of Revenue Intelligence, Mumbai |
|
Stay Order No.166 to 169/12 obtained from CESTAT on 21/03/2012 |
8,022.06 |
April 2006 -Sep. 2008 |
Customs, Excise and Service Tax Appellate |
||
Service Tax |
CENVAT Credit on Capital Goods utilized in discharging Service Tax where Notification 1/2006 is availed |
Order-in-Original No. 64/2011 dt. 30/11/2011 |
1,338.46 |
Oct. 2008 to Sep. 2009 |
Tribunal (CESTAT), Chennai |
Order -in Original No. 19 & 20/2013 dated 28/02/2013 |
462.41 |
Oct. 2009 to Sep. 2010 |
|||
Order-in-Original No. 19 & 20/2013 dated 28/02/2013 |
263.70 |
Oct. 2010 to Mar. 2011 |
|||
SCN 227/2013 dt. 02.07.2013 |
170.58 |
April 2011 to March 2012 |
Commissioner of Service Tax, Chennai |
||
SCN No. 243/2014 dated 27/08/2014 |
19.67 |
April 2012to June 2012 |
Joint Commissioner of Service Tax, Service Tax Commissioner ate, Chennai |
||
SCN No. 02/2015 dated 06/01/2015 |
21.15 |
July 2012 to March 2013 |
Joint Commissioner of Service Tax II Commissioner ate, Chennai |
||
Service Tax demanded on Retention monies held by client as the same is yet to receive from Client by us, Capital Goods used in SEZ Zone and Wrong availment of CVD in respect of ''Schwing Boom Placer1 and CENVAT Credit on Capital Goods utilized in discharge |
Order -in Original No. 65/2011 dated 30/11/2011 |
446.21 |
2008-2009 |
Customs, Excise and Service Tax Appellate |
|
Order -in Original No. 66/2011 dated 30/11/2011 |
394.74 |
2009-2010 |
Tribunal (CESTAT), Chennai |
||
Service Tax demanded on Retention monies held by client as the same is yet to receive from Client by us, Capital Goods and Scaffolding Materials which are exclusively used in Airport |
Order -in Original No. 50 & 51 -13-14 dated 22/01/2014 |
80.17 |
2010-2011 |
Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai |
|
Order -in Original No. 50 & 51 -13-14 dated 22/01/2014 |
13.76 |
April 2011 to June 2011 |
Service Tax |
Service Tax on Works Contract Service provided to M/s. Bangalore Metropolitan Transport Corporation, Bangalore |
SOD No. 237/2013 dated 10/07/2013 |
93.07 |
Sep 2011 to Sep 2012 |
Commissioner of Service Tax, Chennai |
SOD No. 29/2014 dated 09/12/2014 |
6.05 |
Oct 2012 to June 2014 |
Joint Commissioner of Service Tax II Commissionerate, Chennai |
||
Short Payment of Service Tax on Rebate Allowed by the Sub-Contractors |
SCN No. 174/2014 dated 23/07/2014 |
41.07 |
April 2011 to Sep 2012 |
Commissioner of Service Tax (Appeals-ll), Service Tax Commissionerate, Chennai |
|
SOD No. 30/2014 dated 09/12/2014 |
20.20 |
Oct 2012 to Mar 2014 |
Commissioner of Service Tax (Appeals-ll), Service Tax Commissionerate, Chennai |
||
O/o No. 27/2013 dated 30/05/2013 & Appeal No.59/2013 dt. 16/08/2013 |
14.78 |
April 2011 to January 2012 |
Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai |
||
Central Excise Act, 1944 |
Levy of Excise Duty on manufacture of Ready Mix Concrete vide Notification 1/2011 dated 1.3.2011 for removal from a Batching plant located outside the Project location and used exclusively for the project. |
0/oNo. 147/2013 dated 3 0/12/2013 & Appeal No.17/2014 (M-IV) dt. 03/03/2014 |
1.02 |
February 2012 to March 2012 |
Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai |
O/oNo.10/2013 dated 28/01/2013 (REFUND) & Appeal No.32/2013 (M-IV) dt. 26/04/2013 |
1.62 |
March 2011 |
Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai |
||
O/o No.02/2013 dated 21/02/2013 & Appeal No.31/2013 (M-IV) dt. 25/04/2013 |
3.96 |
July 2011 to March 2012 |
Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai |
||
O/o 10/2014 dated. 30/05/2014 & Appeal No. 58/2014 (M-IV) dated 13/08/2014 |
25.05 |
April 2012to March 2013 |
Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai |
||
Order-in-Appeal No. 204 dated 09/01/2014 |
4.39 |
2011-2012 |
Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Principal Bench, New Delhi |
||
SCN No. 66/2011- 12/2273 dt 30.07.2013 |
4.59 |
Aug 2012-Dec 2012 |
Commissioner of Central Excise,(Appeals), New Delhi |
Central Excise Act, 1944 |
Levy of Excise Duty on manufacture of Ready Mix Concrete vide Notification 1/2011 dated 1.3.2011 for removal from a Batching plant located outside the |
O/o No.MLR-EXCUS-000-UDDN-JTC-KDK-029-14-15 dt. 23/07/2014 |
10.07 |
May 2011 to Jan- 2013 |
Commissioner of Customs and Central Excise (Appeals), Mysore |
O-l-O No.09/ 2013-14 dt. 22/07/2013 |
13.61 |
Oct 2011 to July 2012 |
Commissioner of Customs and Central Excise (Appeals), Delhi |
||
Project location and used exclusively for the project. |
SCN 843 dt. 09/04/2014 |
4.78 |
Jan 2013to June 2013 |
The Assistant Commissioner of Central Excise, Division - VI, Nehru Place, New Delhi |
|
SCN 22/2014 dt. 28/04/2014 |
16.36 |
April 2013to March 2014 |
Commissioner of Customs and Central Excise (Appeals), Chennai |
** 50% paid balance through BG *** Adjusted against the refund due
(viii) According to the records of the Company examined by us and the information and explanations given to us, the Company has not defaulted in repayment of dues to Financial Institution or banks or debenture holders as at the balance sheet date.
(ix) According the information and explanations provided to us and examination of the books of account, Company has not raised any moneys by way of initial public offer or further public offer or the term loans except conversion of part of the debt into equity as per CDR package sanctioned. Accordingly, reporting as to application of the moneys under clause (ix) of the Order is not applicable.
(x) According to the information and explanation provided to us, there were no fraud by the Company or any fraud on the Company by its officers or employees has been noticed or reported during the year;
(xi) According to the information and explanation provided and records of the company examined by us, no managerial remuneration is paid or provided during the year; During the year ended 31/3/2014 company had paid Rs.118 lakh excess remuneration to its whole time directors approval for which is pending from Central Government;
(xii) The Company is not a Nidhi Company;
(xiii) According to the information and explanation given to us, all the transactions with the related parties are in compliance with section 177 and 188 of Companies Act, 2013,where applicable and the details have been disclosed in the Financial Statements as required by the applicable accounting standards
(xiv) The company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review.
(xv) According to the information and explanation given to us, the company has not entered into any non-cash transactions with the directors or persons connected with him.
(xvi) According to the information and explanation provided to us the Company is not a Non-Banking Financial Corporation and accordingly registration under section 45IAof the Reserve Bank of India Act, 1934 is not required.
FOR ASA & ASSOCIATES LLP
Firm Registration No. 009571N/500006
Chartered Accountants
Place : Channai S Sundar Rajan
Date : May 25,2016 Partner
Membership No 211414
Mar 31, 2015
We have audited the accompanying standalone financial statements of
Consolidated Construction Consortium Limited ("the Company"), which
comprises the Balance Sheet as at March 31, 2015, the Statement of
Profit and Loss, the Cash Flow Statement for the year then ended, and a
summary of significant accounting policies and other explanatory
information.
2. Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation and presentation of these financial statements that
give a true and fair view of the financial position, financial
performance and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding of the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud orerror.
3. Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose expressing an
opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
4. Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) In case of the Balance Sheet of the state Affairs of the
companyasatMarcr.31,2015,
b) In case of the Statement of Profit and Loss, of the loss for the
year ended on that date, and
c) In case of Cash flow Statements, the cash flows for the year ended
on that date.
5. Emphasis of Matter
1. We also draw your attention to Note 5.1 regarding financial
condition and mitigating factors and preparation of financial
statements on going concern basis by management. The financial
statements do not include any adjustment in lieu of assertion in this
regard.
2. We also draw your attention to Note 5.6 regarding treatment of
certain items of income and expenditure amounting to Rs.2492.63 Lacs
(net) as exceptional items considering their size, type and incidents
so that its disclosure improves and understanding performance of the
company during the current year.
Our opinion is not qualified/modified in respect of these matters.
6. Report on Other Legal and Regulatory Requirements
6.1 As required by the Companies (Auditor's Report) Order, 2015 ("the
Order"), issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable.
6.2 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, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account
d) In our opinion, the aforesaid standalone financial statements comply
with the Accounting Standards specified under Section 133 of the Act,
read with Rule 7 of the Companies (Accounts) Rules, 2014.
e) On the basis of the written representations received from the
directors as on March 31, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on March 31, 2015
from being appointed as a director in terms of Section 164 (2) of the
Act.
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our information and
according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements Note 5.14 to the
financial statements;
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long-term contracts including derivative contracts.
iii. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
Annexure to the Independent Auditors' Report
Referred to in paragraph 6.1 of the Independent Auditors' Report of
even date to the members of Consolidated Construction Consortium
Limited on the standalone financial statements for the year ended March
31, 2015
(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 have been physically verified
by the management in accordance with a phased programme of verification
and no material discrepancies were noticed on such verification. In our
opinion, the frequency of verification of the fixed assets is
reasonable having regard to the size of the company and the nature its
assets.
(ii) a) As explained to us, the inventories including site materials,
stores and construction aids have been physically verified by the
management at reasonable intervals during the year. In our opinion, the
frequency of such verification is reasonable.
b) As per the information given to us, the procedures of physical
verification of inventory followed by the management are, in our
opinion, reasonable and adequate in relation to the size of the Company
and the nature of its business.
c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
book records were not material.
(iii) a) According to the information and explanation to us, the
company has granted interest free unsecured loan to its subsidiary
company and Step down subsidiaries, covered in the register maintained
under Section 189 of the Companies Act..
No of Parties: 3
Amounts Involved:Rs,8,46,65,317/-
Maximum Amount Outstanding : Rs, 1,00,36,83,353/-
In the absence of any specific terms of arrangement with reference to
repayments, no separate comments are offered to clause 3 (iii) (a) to
(b) of the said orders.
(iv) In our opinion and according to the information and explanations
given to us the internal control system is commensurate with the size
of the Company and the nature of its business for the purchase of
inventory, fixed assets and for the sale services. Further, on the
basis of our 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 other than deficiencies with respect to
completion of projects within agreed time lines.
(v) The Company has not accepted any deposits from the public.
(vi) We have broadly reviewed the books of account maintained by the
Company in respect of services where, pursuant to the rules made by the
Central Government of India, the maintenance of cost records has been
prescribed under clause (d) of sub-section (I) of section 148 of the
Companies Act and are of the opinion that prime 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 or 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 not regular in depositing the undisputed statutory dues including
provident fund, employees' state insurance, income- tax, sales
tax/Value Added Tax (VAT), wealth tax, service tax, customs duty,
excise duty, cess and other statutory dues as applicable with the
appropriate authorities. There are no arrears of outstanding statutory
dues as at the last day of the financial year concerned for a period of
more than six months from the day the same became due.
b) The Company has not deposited either fully or partly in respect of
income-tax, sales-tax/ Value Added Tax (VAT), wealth tax, service tax,
customs duty, excise duty and other government dues, on account of
disputes before various forums as set out here under:
Name of
Statue Nature of Dispute Reference
Disallowance of certain expenditure AO dated
and claims 28.12.2010
AO dated
30.12.2010
AO dated
Income 21.11.2011
Tax Act,
1961 AO dated
28.03.2013
Kerala Sales made to SEZ claimed as exempt Assessment
VAT (Extension of benefit in KGST Sought) No. D/753/
06/2005-06
dated
31.07.2008
Demand
Karnataka Disallowance of Margin on Notice dated
VAT sub-contract portion, Security 19.10.2010
Service and Repair Service.
Order dated
19.10.2010
Inclusion of turnover of SEZ under Based on
Section 6 TNVAT and Stock Transfers Sworn
TNVAT Statement
Reversal of Input Tax Credit for SEZ Notice
projects, Stock Transfers,
Unregistered dated
Purchases and schedule rate variation 28.11.2011
in RMC
O/o No.
27/2013,
Appeal No.
59/2013 dt.
16/08/2013
Levy of Excise Duty on manufacture of Q/o No
Ready Mix Concrete vide Notification 147/2013
Central
Excise 1/2011 dated 1.3.2011 for removel from Appeal No.
Act,1944 a Batching plant located outside the 17/2014 dt,
project the project 03/03/2014
O/o No.
10/2013,
Appeal No.
32/2013 dt.
O/o No.
02/2013,
Appeal No.
31/2013 dt.
25/04/2013
SCN Levy of Excise Duty on manufacture of 03/2012 dt.
Excise Ready Mix Concrete vide Notification 22/06/2012
Act,1944 a Batching plant located outside the
project location and used exclusively
for the project.
SCN
11/2013 dt.
02/05/2013
Order in
Appeal
No.204 datec
09/01/2014
SCN 66/2011-12
dated 30/07/2013
SCN
IV/09/94/
2013 dated
19/06/2013
O/0 No.
09/2013 dt.
22/07/2013
SCN 843 dt.
09/04/2014
SCN 22/2014
dt.
28/04/2014
Costoms Short payment of Customs Duty of SCN 1908
Duty IMPORT OF eQUIPMENT ON DATED
High Sea Sale 21.02.2013
Stay Order
No 166 to
169/12
obtainted
from CESTAT
on 21/03/2012
Order-in-
Original No.
Service
Tax CENVAT Credit on Capital Goods 64/2011 dt.
utilized in discharging Service Tax 30/11/2011
where Notification 1/2006 is availed
ORDER -IN-
Original No,
19 & 20/2015
dated
28/02/2013
Order-in- 263.70
Original No.
19 & 20/2015
dated 28/02/2013
SCN 170.58 227/2013
dt. 02.07.2011
SCN No. 19.67
243/2014
dated 27/08/2014
SCN No. 21.15
02/2015 dated
06/01/2015
Service Tax demanded on Retention ORDER -IN-
monies held by client as the same is Original
No 65/2011
yet to receive from Client by us,
Capital dated
Goods used in SEZ Zone and Wrong 30/lT/2011
a ailment of CVD in respect of
'Showing Boom Placer' and CENVAT Order -in-
Credit on Capital Goods utilized in Original
discharge No. 66/2011
dated
30/11/2011
Order-in-
Service Tax demanded on Retention Original No,
monies held by client as the same is 50 & 51
yet to receive from Client by us, -13-14
Capital Goods and Scaffolding dated
Materials
which are exclusively used in Airport 22/01/2014
Order-in-
Original No.
50 & 51
-13-14
dated
22/01/2014
Service Tax on Works Contract Service SOD No.
provided to M/s. Bangalore 237/2013
Service Metropolitan Transport Corporation, dated
Tax Bangalore 10/07/2013
sod No.
29/2014
dated
09/12/2014
Short Payment of Service Tax on SCN No.
Rebate Allowed by the 174/2014
Sub- Contractors Dated
23/07/2014
SOD No.
30/2014 dated
09/12/2014
Name of Amount Periods to which Forum where the
Statute (Rs.in the amount disputes are
lakhs) relates (F.Y) PENDING
225.68*** 2005-2006 High Court of Madras
945.77*** 2007-2008 Income Tax Appellate
Tribunal
Income 414.97*** 2008-2009 Income Tax Appellate
Tax ACT Tribunal
1961 458.59*** 2009-2010 Commissioner of
Income Tax
(Appeals)-I, Chennai
kERALA 55.10 2005-2006 Appellate Assistant
VAT Commissioner, Cochin
Karnataka 35.40** 2008-2009 Joint Commissioner of
VAT (from August 08) Commercial Tax
(Appeals), Bangalore
34.20** 2009-2010 Joint Commissioner of
Commercial Tax
(Appeals), Bangalore
407.85# Jan. 2007 to Commercial Tax
TNVAT March 2008 Officer, Chennai
552.56# April 2008 to Commercial Tax
March 2010 Officer, Chennai
14.78 2010-2012 Commissioner of
(April 2011 to Customs and Central
January 2012) Excise (Appeals),
Chennai
Central 1.02 2011-2012 Commissioner of
Excise (February 2012 to Customs and Central
Act,1944 March 2012) Excise (Appeals),
Chennai
1.62 2010-2011 Commissioner of
(March 2011) Customs and Central
Excise (Appeals), Chennai
3.96 2011-2012 Commissioner of
(July 2011 to Customs and Central
March 2012) Excise (Appeals), Chennai
Central 0.11 2010-2011 The Additional
Excise (March 2011) Commissioner of Central
Act,1944 Excise, Maduravoyal
Division, Chennai IV.
Commissioner ate, Chennai
25.05 2012-2013 The Additional
(April 2012 to Commissioner of
March 2013) Central Excise, Chennai IV.
Commissioner ate, Chennai
4.39 2011-2012 Customs, Excise and
(March 2011 to Service Tax Appellate
January 2012 Tribunal, Delhi
4.59 2012-13 Commissioner of
(August 2012 to Central Excise,
December 2012) (Appeals), Delhi
10.07 2013-2014 The Additional
Commissioner of Central
Excise, Mangalore
13.61 Oct 2011 to Commissioner Appeals,
July 2012 Central Excise
Commissionerate, Delhi-II
4.78 Jan 2013 to The Assistant
June 2013 Commissioner of Central
Excise, Division-VI,
Nehru Place, New Delhi
16.36 Jan 2013 to The Additional
June 2013 Commissioner of Central
Excise, Chennai IV
Commissioner ate,
Chennai
2.93 2008-2009 Directorate of Revenue
Intelligence, Mumbai
8,022.06 April 2006-
Sep. 2008 Customs, Excise and
Service Tax Appellate
1,338.46 Oct. 2008 to Tribunal
Sep. 2009 (CESTAT), Chennai
462.41 Oct. 2009 to
Sep. 2010
263.70 Oct. 2010 to
Mar. 2011
170.58 April 2011 to Commissioner of
March 2012 Service Tax,Chennai
19.67 April 2012 to Joint Commissioner of
June 2012 Service Tax, Service Tax
Commissioner ate, Chennai
21.15 July 2012 to Joint Commissioner of
March 2013 Service Tax II
Commissioner ate,
Chennai
446.21 2008-2009 Customs, Excise and
Service Tax Appellate
394.74 2009-2010 Tribunal ÂZVCESTAT)'
Chennai
80.17 2010-2011 Customs, Excise and
Service Tax Appellate
Tribunal (CESTAT),
13.76 April 2011 to Chennai
June 2011
93.07 Sep 2011 to Commissioner of
Service Sep 2012 Service Tax,
Tax Chennai
6.05 Oct 2012 to Joint Commissioner of
June 2014 Service Tax II
Commissioner ate,
Chennai
41.07 April 2011 to Joint Commissioner of
Sep 2012 Service Tax, Service Tax
Commissioner ate, Chennai
20.20 Oct 2012 to Joint Commissioner of
Mar 2014 Service Tax II
Commissioner ate, Chennai
* Paid under protest / Paid fully ** 50% paid balance through BG
*** Adjusted against the refund due # Partly paid under protest-Writ
filed in High Court.
c. There is no requirement to transfer funds to investor education and
protection fund in accordance with the relevant provisions of the
Companies Act, 2013 and rules made there under.
(viii) The Company has accumulated losses as at March 31, 2015 to the
tune of Rs. 19,924.32 Lakhs which is more than fifty percent of the Net
worth. It has incurred cash losses in the financial year ended on that
date and in the immediately preceding financial year.
(ix) According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to financial institution or banks as at the
balance sheet date.
(x) The Company has extended corporate guarantee to Banks of its wholly
owned subsidiary for the facilities extended by the said Banks. In our
opinion and according to the information and explanations given to us,
the terms & conditions of such corporate guarantee are not prejudicial
to the interest of the company.
(xi) According to the information and explanations given to us, the
Company has accepted term loans from the bankers which are applied for
purpose for which it was obtained..
(xii) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of ouraudit.
For ASA & ASSOCIATES LLP
Firm Registration No: 009571N/N500006
Chartered Accountants
Place : Chennai J.Sivasankaran
Date : May 27, 2015 Partner
Membership No. 200/022103
Mar 31, 2014
We have audited the accompanying financial statements of Consolidated
Construction Consortium Limited ("the Company"), which comprise the
Balance Sheet as at March 31, 2014, and the Statement of Profit and
Loss for the year then ended, and the Cash flow statement and a summary
of significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards notified under the Companies Act, 1956 ("the
Act") read with the General Circular 15/2013 dated 13th September 2013
of the Ministry of Corporate Affairs in respect of section 133 of the
Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and fair presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion..
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) in the case of the Statement of Profit and Loss, of the loss for the
year ended on that date; and
c) in the case of the Cash flow statements, the cash flows for the year
ended on that date.
Emphasis of Matter
Without qualifying, we draw your attention to Note 5.1 regarding the
financial condition, mitigating factors and going concern. The
financial statements do not include any adjustments in view of the
management''s assertion in this regard.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 (''the
Order'') issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) in our opinion, the Balance Sheet and Statement of Profit and Loss
and the Cash flow statements comply with the Accounting Standards
notified under the Companies Act, 1956 ("the Act") read with the
General Circular 15/2013 dated 13th September 2013 of the Ministry of
Corporate Affairs in respect of section 133 of the Companies Act, 2013;
e) on the basis of written representations received from the directors
as on March 31, 2014 and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub- section (1) of
section 274 of the Companies Act, 1956.
Annexure to the Independent Auditors'' Report of even date to the
members of Consolidated Construction Consortium Limited on the
financial statements for the year ended March 31, 2014
(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 have been physically verified
by the management in accordance with a phased programme of verification
and no material discrepancies were noticed on such verification. In our
opinion, the frequency of verification of the fixed assets is
reasonable having regard to the size of the Company and the nature of
its assets.
c. In our opinion, a substantial part of fixed assets has not been
disposed off during the year.
(ii) a) As explained to us, the inventories including site materials,
stores and construction aids have been physically verified by the
management at reasonable intervals during the year. In our opinion, the
frequency of such verification is reasonable.
b. As per the information given to us, the procedures of physical
verification of inventory followed by the management are, in our
opinion, reasonable and adequate in relation to the size of the Company
and the nature of its business
c. The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
book records were not material.
(iii) a) According to the information and explanations given to us the
Company has granted interest free unsecured loan to its subsidiary
company and Step down subsidiaries, covered in the register maintained
under Section 301 of the Act.
No of Parties: 6
Amounts Involved: Rs. 71,48,79,439/-
Maximum Amount Outstanding: Rs. 1,265,910,958/-
In the absence of any specific stipulation with reference to
repayments, no separate comments are offered to clause 4 (iii) (b) to
(d) of the said orders except to the extent of stating that the said
loans are not prejudicial to the interest of the company.
b) According to the information and explanations given to us, the
Company has taken interest free unsecured loan, from its subsidiary
company covered in the register maintained under section 301 of The
Companies Act, 1956.
No of Parties: 1
Amounts Involved: Rs. 21,572,319/-
Maximum Amount Outstanding: Rs. 21,572,319/-
In the absence any specific stipulation with reference to repayments,
no separate comments are offered pursuant to clause 4 (iii) (f) & (g)
of the said orders except to the extent of stating that the said loan
is not pre-judicial to the interest of the company.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of services and
for carrying out the contracts and related activities. During the
course of our audit, no major weakness has been noticed in the internal
control system in respect of these areas nor have been informed of any
continuing failure to correct major weaknesses in the aforesaid
internal control systems.
(v) a. In our opinion, the particulars of all contracts or arrangements
that need to be entered into the register maintained under Section 301
of the Act have been so entered.
b. In our opinion, the transactions made in pursuance of such contracts
or arrangements and exceeding the value of rupees five lakhs in respect
of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
(vi) The Company has not accepted any deposits from the public within
the meaning of Sections 58A and 58AA of the Act and the Companies
(Acceptance of Deposits) Rules, 1975. Accordingly, the provisions of
clause 4(vi) of the Order are not applicable.
(vii) In our opinion and according to the information and explanations
given to us, the Company has an internal audit system, which is
commensurate with the size and nature of business of the Company.
(viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209(1)(d) of the Companies
Act, 1956, related to the construction of buildings/structures and
other related activities, and are of the opinion that prima facie, the
prescribed accounts and records have been made and maintained.
(ix) a. Undisputed statutory dues including provident fund, investor
education and protection fund, employees'' state insurance, income-tax,
sales-tax, wealth-tax, service-tax, custom duty, excise duty, cess and
other material statutory dues, as applicable, have not been regularly
deposited with the appropriate authorities and there have been
significant delays in a large number of cases. Undisputed amounts
payable in respect thereof, which were outstanding at the year- end for
a period of more than six months from the date they became payable are
as follows:
Name of the Nature of Amount Period to which
statute the dues (Rs in Lakhs) the amount
relates
Finance Act, Service 87.76 September
1994 Tax 2013
Employees Provident Provident 55.35 September
Fundand Miscellaneous Fund 2013
Provisions Act, 1952
b. The company has not deposited either fully or partly in respect of
Income tax, Excise duty, Cess , VAT/Sales tax ,Service tax and other
Govt. dues, on account of disputes before various forums as set out
here under:
Name Nature of Dispute Reference Amount
of Statue (Rs. in Lakhs)
Disallowance of certain AO dated 225.68***
expenditure and claims 28.12.2010
AO dated 945.77***
30.12.2010
AO dated 414.97***
Income 21.11.2011
Tax Act,
1961
AO dated 458.59***
28.03.2013
Kerala Sales made to SEZ claimed Assessment 55.10
VAT as exempt (Extension of No. D/753/
benefit in KGST Sought) 06/2005-06
dated
31.07.2008
Re- 170.01*
Assessment
order dated
Right of State to levy VAT 31.01.2008
at a higher rate, in respect
of declared goods (Steel) STA 577.00**
No.2211 to
Karnataka 2218 dated
VAT 03.11.2010
Demand 35.40*
Notice dated
Disallowance of Margin on 19.10.2010
sub-contract portion,
Security Service and Repair
Service. Order dated 34.20**
19.10.2010
Inclusion of turnover of SEZ Based on 407.85#
under Section 6 TNVAT and Sworn
Stock Transfers Statement
TNVAT
Reversal of Input Tax Credit Notice 552.56#
for SEZ projects, Stock dated
Transfers, Unregistered 28.11.2011
Purchases and schedule rate
variation in RMC
O/o No. 14.78
27/2013,
Appeal No.
59/2013 dt.
16/08/2013
O/o No. 1.02
Levy of Excise Duty on 147/2013,
manufacture of Ready Mix Appeal No.
Concrete vide Notification 17/2014 dt.
Central 1/2011 dated 1.3.2011 for 03/03/2014
Excise removal from a Batching
Act, 1944 plant located outside the
Project location and used
exclusively for the project. O/o No. 1.62
10/2013,
Appeal No.
32/2013 dt.
26/04/2013
O/o No. 3.96
02/2013,
Appeal No.
31/2013 dt.
25/04/2013
SCN 0.11
03/2012 dt.
22/06/2012
SCN 25.05
11/2013 dt.
02/05/2013
Order in 4.39
Appeal
No.204 dated
09/01/2014
SCN 4.59
66/2011-12
dated
30/07/2013
SCN 10.07
IV/09/94/
2013 dated
19/06/2013
Stay Order 8,022.06
No.166 to
169/12 dt.
21/03/2012
Order-in- 1,338.46
Original No.
Finance CENVAT Credit on Capital Goods 64/2011 dt.
Act, 1994 utilized in discharging 30/11/2011
(Service Service Tax where Notification
Tax) 1/2006 is availed
SCN 462.41
544/2011 dt.
21.10.2011
SCN 263.70
240/2012 dt.
12.07.2012
SCN 170.58
227/2013 dt.
02.07.2013
Service Tax demanded on Order-in- 446.21
Retention monies held by Original No
client as the same is 65/2011 dt.
yet to receive from Client 30/11/2011
by us, Capital Goods used
in SEZ Zone and availment
of CVD in respect of
''Schwing Boom Placer'' and Order-in- 394.74
CENVAT Credit on Capital Original No.
Goods utilized. 66/2011 dt.
Service 30/11/2011
Tax
Service Tax demanded on Order-in- 93.93
Retention monies held by Original No.
client as the same is yet to 50 & 51
receive from Client by us, -13-14 dt.
Capital Goods and Scaffolding 22/01/2014
Materials which are
exclusively used in Airport.
Customs Short payment of Customs Duty SCN 1908 2.93
Duty for import of Equipment on dated
High Sea Sale 21.02.2013
Name Periods to which Fourm where the
of Statue the Amount disputes are
relates (F.Y.) pending
2005-2006 High Court of Madras
2007-2008 Income Tax Applicate
Tribunal
2008-2009 Income Tax Applicate
Income Tribunal
Tax Act,
1961
2009-2010 Commissioner of
Income Tax
(Appeals)-I, Chennai
Kerala 2005-2006 Appellate Assistant
VAT Commissioner, Cochin
2006-2007 Joint Commissioner of
Commercial Tax
(Appeals), Bangalore
2007-2008 Karnataka Appellate
Tribunal
Karnataka
VAT 2008-2009 Joint Commissioner of
(from August 08) Commercial Tax
2009-2010 Joint Commissioner of
Commercial Tax
(Appeals), Bangalore
Jan. 207 to Commercial Tax
March 2008 Officer, Chennai
TNVAT
2010-2012
April 2008 to Commercial Tax
March 2010 Officer, Chennai
2010-2012 Commissioner of
(April 2011 to Customs and Central
January 2012) Excise (Appeals),
Chennai
2011-2012 Commissioner of
(February 2012 to Customs and Central
March 2012) Excise (Appeals),
Chennai
Central
Excise
Act, 1944
2011-2012 Commissioner of
(July 2011 to Customs and Central
March 2012) Excise (Appeals),
Chennai
2010-2011 The Additional
(March 2011) Commissioner of
Central Excise,
Maduravoyal,
Chennai IV.
Commissionerate,
Chennai
2012-2013 The Additional
(April 2012 to Commissioner of
March 2013) Central Excise,
Chennai IV.
Commissionerate,
Chennai
2011-2012 Customs, Excise and
(March 2011 to Service Tax Appellate
January 2012 Tribunal, Delhi
2012-13 Commissioner of
(August 2012 to Central Excise,
December 2012) (Appeals), Delhi
2013-2014 The Additional
Commissioner of
Central Excise,
Mangalore
April 2006 - Customs, Excise and
Sep. 2008 Service Tax Appellate
Oct. 2008 to Tribunal
Sep. 2009 (CESTAT),
Chennai
Finance
Act, 1994
(Service
Tax)
Oct. 2009 to Commissioner of
Sep. 2010 Service Tax,
Chennai
Oct. 2010 to Commissioner of
Mar. 2011 Service Tax,
Chennai
April 2011 to Commissioner of
March 2012 Service Tax,
Chennai
2008-2009
Customs'' Excise and
2009-2010 Tribunal (CESTAT)
Service
Tax
2010-2011 Customs, Excise and
Service Tax Appellate
Tribunal (CESTAT)
Chennai
Customs 2008-2009 Directorate of Revenue
Duty Intelligence, Mumbai
* Paid under protest / Paid fully ** 50% paid balance through BG
*** Adjusted against the refunds due # Partly paid under protest-
Writ filed in High Court.
(x) The Company has accumulated losses as at March 31, 2014 to the tune
of Rs.450,140,965/-, and has incurred cash losses during the current
financial year to the tune of Rs. 3,077,712,696/- and Rs.744,997,289/-
in the immediately preceding financial year.
(xi) The Company has defaulted in repayment of dues to
debenture-holders during the year amounting to Rs 2 Crores which has
become due for redemption on November 22, 2013 and the Company has been
pleading the debenture trustees to get them included under the
Corporate Debt Restructuring (CDR) scheme, sanctioned by the Bankers.
In respect of loans/ line of credit from Banks, the Company has been
sanctioned the CDR scheme effective from October 1, 2013.
(xii) On the basis of records of the Company examined by us and the
information and explanations given to us, the Company has not granted
any loans and advances on the basis of security by way of pledge of
shares, debentures and other securities. Accordingly, the provisions of
clause 4(xii) of the Order are not applicable.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/
mutual benefit fund/ society. Accordingly, the provisions of clause
4(xiii) of the Order are not applicable.
(xiv) According to the information and explanations given to us and the
records of the company examined by us, the Company is not dealing or
trading in shares, securities, debentures and other investments.
Accordingly, the provisions of clause 4(xiv) of the Order are not
applicable.
(xv) The Company has extended corporate guarantee to the Bankers of its
wholly owned subsidiary and Associates for the facilities extended by
the said Bankers. In our opinion and according to the information and
explanations given to us, the terms & conditions of such corporate
guarantee are not prejudicial to the interest of the company.
(xvi) In our opinion, the Company has applied the term loans for the
purpose for which these loans were obtained.
(xvii) In our opinion, no funds raised on short-term basis have been
used for long-term investments.
(xviii) During the year, the Company has not made any preferential
allotment of shares to parties or companies covered in the register
maintained under Section 301 of the Act. Accordingly, the provisions of
clause 4 (xviii) of the Order are not applicable.
(xix) The Company has created security in respect of debentures issued
and outstanding.
(xx) The Company has not raised any money by public issues during the
year. Accordingly, the provisions of clause 4(xx) of the Order are not
applicable.
(xxi) 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, and according to the information and
explanations given to us, no fraud on or by the company noticed or
reported during the year, nor we have been informed of such case by the
management.
For ASA & ASSOCIATES LLP
Firm Regn. No. : 009571N
Chartered Accountants
K. VENKATRAMAN
Place : Chennai Partner
Date : May 28, 2014 Membership No.: 200/21914
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Consolidated
Construction Consortium Limited ("the Company"), which comprise the
Balance Sheet as at March 31, 2013, and the Statement of Profit and
Loss for the year then ended, and the Cash flow statement and a summary
of significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and fair presentation of the financial statements
that give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31,2013;
b) in the case of the Statement of Profit and Loss, of the loss for the
year ended on that date; and
c) in the case of the Cash flow statements, the cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 (''the
Order'') issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b)in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
d) in our opinion, the Balance Sheet and Statement of Profit and Loss
and the Cash flow statements comply with the Accounting Standards
referred to in subsection (3C) of section 211 of the Companies Act,
1956;
e) on the basis of written representations received from the directors
as on March 31,2013 and taken oh record by the Board of Directors, none
of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
(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 have been physically verified
by the management in accordance with a phased programme of verification
and no material discrepancies were noticed on such verification. In our
opinion, the frequency of verification of the fixed assets is
reasonable having regard to the size of the Company and the nature of
its assets.
c. The Company has not disposed of a substantial part of fixed assets
during the year so as to affect the going concern status of the
company.
(ii) a) As explained to us, the inventories including site materials,
stores and construction aids have been physically verified by the
management at reasonable intervals during the year. In our opinion, the
frequency of such verification is reasonable.
b. As per the information given to us, the procedures of physical
verification of inventory followed by the management are, in our
opinion, reasonable and adequate in relation to the size of the Company
and the nature of its business.
c. The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
book records were not material.
(iii) a) According to the information and explanations given to us the
Company has granted interest free unsecured loan to its subsidiary
company and Step down subsidiaries, covered in the register maintained
under Section 301 of the Act.
No of Parties: 5
Amounts Involved: Rs. 15,93,21,344/-
Maximum AmountOutstanding: Rs.1,25,41,63,088/-
In the absence of any specific stipulation with reference to
repayments, no separate comments are offered to clause 4 (iii) (b) to
(d) of the said orders except to the extent of stating that the said
loans are not prejudicial to the interest of the company.
b) According to the information and explanations given to us, the
Company has not taken any loans, secured or unsecured, from companies,
firms and other parties covered in the register maintained under
section 301 of the Companies Act, 1956. Accordingly, paragraphs
4(iii)(f) and (g) of the Order are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory and fixed assets and for the sale of services and
for carrying out the contracts and related activities. During the
course of our audit, no major weakness has been noticed in the internal
control system in respect of these areas nor have been informed of any
continuing failure to correct major weaknesses in the aforesaid
internal control systems
(v) a. In our opinion, the particulars of all contracts or arrangements
that need to be entered into the register maintained under Section 301
of the Act have been so entered.
b. In our opinion, the transactions made in pursuance of such contracts
or arrangements and exceeding the value of rupees five lakhs in respect
of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
(vi) The Company has not accepted any deposits from the public within
the meaning of Sections 58 A and 58AA of the Act. and the Companies
(Acceptance of Deposits) Rules, 1975. Accordingly, the provisions of
clause 4(vi) of the Order are not applicable.
(vii) In our opinion and according to the information and explanations
given to us, the Company has an internal audit system, which is
commensurate with the size and nature of business of the Company.
(viii)We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under section
209(1 )(d) of the Companies Act, 1956, related to the construction of
buildings / structures and other related activities, and are of the
opinion that prima facie, the prescribed accounts and records have been
made and maintained.
(ix) a. The Company is regular in depositing the undisputed statutory
dues including provident fund, investor education and protection fund,
employee''s state insurance, income tax, sales tax, wealth tax, service
tax, custom duty, excise duty, cess and other material statutory dues,
as applicable, with the appropriate authorities. Further, no
undisputed amounts payable in respect thereof were outstanding at the
year- end for a period of more than six months from the date they
become payable.
b. The company has not deposited either fully or partly in respect of
Income tax, Excise duty, Cess, VAT/Sales tax ,Service tax and other
Govt. dues, on account of disputes before various forums as set out
here under:
Name Nature of Dispute Reference Amount
(Rs. in Lakhs)
Disallowance of certain
expenditure AO dated 225.68***
and claims 28.12.2010
AO dated 124.03***
30.12.2010
AO dated 945.77***
Income 30.12.2010
Tax
AO dated 414.97***
21.11.2011
AO dated 458.59***
28.03.2013
Kerala Sales made to SEZ
claimed as exempt Assessment 55.10
VAT (Extension of benefit in
KGST Sought) No. D/753/
06/2005-06
dated
31.07.2008
Re- 170.01*
Assessment3
order dated
Right of State to levy
VAT at a 31.01.2008
higher rate, in respect of
declared goods (Steel) STA 577.00**
No.2211 to
Karnataka 2218 dated
VAT 03.11.2010
Demand 35.40*
Notice dated
Disallowance of Margin on 2010
sub-contract portion,
Security
Service and Repair Service. Order dated 34.20**
19.10.2010
Name Periods to which Fourm where the
the amount disputes are
relates (F.Y.) pending
Income
tax 2005-2006 High Court of Madras (Departmental
Appeal)
2006-2007 Commissioner of Income Tax (Appeals)
-III, Chennai
Income 2007-2008 Commissioner of Income Tax (Appeals)
-III, Chennai
2008-2009 Commissioner of Income Tax (Appeals)
-III, Chennai
2009-2010 Commissioner of Income Tax (Appeals)
-III, Chennai
2005-2006 Appellate Assistan Commissioner, Cochin
2006-2007 Joint Commissioner of Commercial Tax
(Appeals), Bangalore
Karnataka 2007-2008 Karnataka Appellate Tribunal
2008-2009 Joint Commissioner of (from August 08)
Commercial Tax (Appeals), Bangalore
2009-2010 Joint Commissioner of Commercial Tax
(Appeals), Bangalore
(xiv) According to the information and explanations given to us and the
records of the company examined by us, the Company is not dealing or
trading in shares, securities, debentures and other investments.
Accordingly, the provisions of clause 4(xiv) of the Order are not
applicable.
(xv) The Company has extended corporate guarantee to the Bankers in
respect of its wholly owned subsidiaries and Associates for the
facilities extended by the said Bankers. In our opinion and according
to the information and explanations given to us, the terms & conditions
of such corporate guarantee are not prejudicial to the interest of the
company.
(xvi) In our opinion, the Company has applied the term loans for the
purpose for which these loans were obtained.
(xvii) In our opinion, no funds raised on short-term basis have been
used for long-term investments.
(xviii) During the year, the Company has not made any preferential
allotment of shares to parties or companies covered in the register
maintained
under Section 301 of the Act. Accordingly, the provisions of clause
4(xviii) of the Order are not applicable.
(xix) During the year, The Company has issued Non convertible
debentures, in respect of which security has been created.
(xx) The Company has not raised any money by public issues during the
year. Accordingly, the provisions of clause 4(xx) of the Order are not
applicable.
(xxi) 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, and according to the information and
explanations given to us, no fraud on or by the company noticed or
reported during the year, nor we have been informed of such case by the
management.
For ASA & ASSOCIATES
Firm Regn. No.: 009571N
Chartered Accountants
K. VENKATRAMAN
Place : Chennai Partner
Date : May 25, 2013 Membership No.: 200/21914
Mar 31, 2012
1. We have audited the attached Balance Sheet of CONSOLIDATED
CONSTRUCTION CONSORTIUM LIMITED ('the company') as at 31st March, 2012
and the related statements of Profit & Loss and Cash Flows for the year
ended, prepared in conformity with the accounting principles generally
accepted in India. These financial statements are the responsibility of
the company's management. Our responsibility is to express an opinion
on these financial statements based on our Audit.
2. We conducted our Audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. We have obtained all the information and explanations, which to the
best of our knowledge and belief, were necessary for the purposes of
our audit.
4. In our opinion, and to the best of our information and according to
the explanations given to us, the accompanying financial statements
a) Give the required information by the Companies Act, 1956 in the
manner so required.
b) Give a true and fair view of the state of affairs of the Company as
at March 31, 2012 and of its related statements of profit & loss and
cash flows for the year then ended, in conformity with the accounting
principles generally accepted in India.
c) Further, the Balance Sheet and statement of Profit and Loss comply
with the Accounting Standards referred to in Section 211(3C) of the Act
and are in agreement with the Books of Account.
d) In our opinion, the Company has maintained proper Books of Account
as required by law in so far as appears from our examination of those
Books.
5. On the basis of information and explanations given to us, and
representations obtained by the Company and taken on record by the
Board of Directors, as on March 31, 2012 none of the Directors are
disqualified from being appointed as Directors in terms of Section
274(1)(g) of the Companies Act.
6. As required by the Companies (Auditor's Report) Order, 2003, as
amended by the Companies (Auditors' Report) (Amendment) Order, 2004,
and according to the information and explanations given to us during
the course of the audit and on the basis of such checks as were
considered appropriate, we enclose in the Annexure a statement on the
matters specified in Paragraphs 4 and 5 of the said Order.
ANNEXURE REFERRED TO IN PARAGRAPH 6 OF OUR REPORT OF EVEN DATE
(i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) As explained to us, the assets have been physically verified by the
management in accordance with a phased programme of verification,
which, in our opinion, is reasonable, considering the size and the
nature of the business. The frequency of verification is reasonable and
no material discrepancies were noticed on such physical verification.
c) The Company has not disposed of a substantial part of fixed assets
during the year so as to affect the going concern status of the
company.
(ii) a) As explained to us, the inventories including site materials,
stores and construction aids have been physically verified by the
management at reasonable intervals during the year. In our opinion, the
frequency of such verification is reasonable.
b) As per the information given to us, the procedures of physical
verification of inventory followed by the management are, in our
opinion, reasonable and adequate in relation to the size of the Company
and the nature of its business.
c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
book records were not material.
(iii) a) According to the information and explanations given to us, the
company has granted unsecured loans to its subsidiary company, covered
in the register maintained under Section 301 of the Companies Act,
1956. No Interest is charged on the above loan. Further, in the absence
of any stipulated schedule, the aspect of receipt of principal amount
and as well overdue doesn't arise. On the basis of check and
verification, the said loan being unsecured, is not prima facie
prejudicial to the interests of the company.
i. No. of parties involved - 6
ii. Amount involved - Rs. 29,89,29,431/-
b) According to the information and explanations given to us, the
Company has not taken any loans, secured or unsecured, from companies,
firms and other parties covered in the register maintained under
section 301 of the Companies Act, 1956. Accordingly, paragraphs
4(iii)(c) and (d) of the Order are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to the purchase of Site materials, etc., fixed
assets and for carrying out the contracts and related activities.
Further, on the basis of our 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 systems.
(v) a. In our opinion and according to the information and explanations
given to us, the contracts or arrangements referred to in Section 301
of the Companies Act, 1956, have been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposits from the Public and
accordingly the provisions of Section 58A and 58AA of the Companies
Act, 1956, and the Companies (Acceptance of Deposits) Rules, 1975 are
not applicable.
(vii) In our opinion, the Company has an adequate internal audit system
commensurate with its size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government for the
maintenance of cost records under section 209(1)(d) of the Companies
Act, 1956, related to the construction of buildings / structures and
other related activities, and are of the opinion that prima facie, the
prescribed accounts and records have been made and maintained.
(ix) a. According to the information and explanations
given to us and the records of the Company examined by us, the Company
is regular in depositing undisputed statutory dues including Provident
Fund, Income Tax, Sales Tax, Service Tax, Customs Duty, Cess, Excise
duty and other material statutory dues as applicable with the
appropriate authorities.
b. According to the information and explanations given to us and the
records of the company examined by us, there are no dues of Income tax,
Wealth Tax, Cess, Excise Duty, Customs Tax, which have not been
deposited on account of any dispute. The particulars of Sales Tax,
Service Tax and Income Tax, as at March 31, 2012 which have not been
deposited on account of the disputes as under.
Nature of Nature of the Amount Periods to
Statute disputed dues (Rs. in Lakhs) which the
amount
relates
Income Provision made in respect
of Managerial 25.4* 2004-05
Tax Act, 1961 Remuneration for which
approval was obtained
subsequent to Balance
Sheet date but before
finalization of Accounts.
Disallowance of Trade
License Fee 225.68*** 2005-2006
(Samruddhi Holdings)
Disallowance of Trade
License Fee 124.03*** 2006-2007
(Samruddhi Holdings),
Disallowance of Additional
Depreciation on RMC
Batching
Plant, Disallowance u/s
14A for income on 945.77*** 2007-2008
mutual fund and
Disallowance of ROC
Expenses 414.97 2008-2009
Service Tax Applicability of Rate
consequent to change 4.97 2007-2008
in rate of Service (Up to
Mar.08)
Tax under Works
Composition Scheme
3.17 2008-2009
(Upto
Sep.08)
Utilization of Cenvat
Credit in excess of 20% 637.20 2007-2008
of Service Tax payable
and wrong a ailment of
Input service on Initial
Public Offer (IPO)
related service
Non-payment of service
tax on Construction 18.40 2007-2008
of British High Commission
& sub-contractor Technip
Karaikkal.
CENVAT Credit on Capital
Goods utilized in 1338.46 2008-2009
discharging Service Tax
where Notification (from
Oct.08)
1/2006 is availed 8022.06 2006-2007,
2007-2008
&
2008-2009
up to Sep
2008
462.41 Oct. 09
to
Sep. 10
Service Tax on retention
monies held, 446.21 2008-09
capital goods used in SEZ
and wrong 394.74 2009-10
a ailment of CVD in "
Schwing Boom Placer" and
Cenvat Credit on capital
goods utilized.
Applicability of Service
Tax on BMTC 970.71 2008-09
to
Project-Bangalore 2011-12
Central Excise Levy of Excise Duty on
manufacture of 14.78 2011-12
RMC vide Notification
1/2011 dated 1.3.2011 (Apr.11 to
Jan.12)
1.46 2011-12
(Apr.11 to
Dec.11)
4.73 2011-12
(Apr.11 to
Sep.11)
Nature of satute Forum where the disputes are pending
Income
Tax Act,1961
ITAT, Chennai
Madras High Court
Commissioner of income Tax(Appeals)
-III,Chennai
Commissioner of income Tax (Appeals)
- III, Chennai
Commissioner of income Tax (Appeals)
-III, Chennai
Service Tax Central Excise service Tax Appeals
Tribunal (CESTAT)
Joint Commissioner of Service Tax
Commissioner of service Tax
Commissioner of service Tax
Commissioner of service Tax
Central Excise service Tax
Appellate Tribunal (CESTAT)
Commissioner of service Tax
Customs, Excise and service Tax
Appellate Tribunal (CESTAT)
Commissioner of service Tax, Chennai
Central Excise Additional Commissioner of central
Excise, Chennai
Assistant commissioner of central
Excise, Chennai
Deputy Commissioner of central
Excise, New Delhi
Nature of Nature of the Amount Periods to
Statute disputed dues (Rs. in Lakhs) which the
amount
relates
Karnataka Right of State to levy
VAT at a higher rate, in 170.01* 2006-2007
VAT respect of declared goods
(Steel)
577.00** 2007-2008
Disallowance of Margin on
sub-contract 35.40* 2008-2009
portion, Security Service
and Repair (from
Aug.08)
34.2** 2009-2010
Kerala VAT Sales made to SEZ claimed
as exempt 55.10 2005-2006
(Extension of benefit in
KGST Sought)
Andhra Service Tax portion to be
Pradesh VAT included in the Andhra
taxable turnover and
reversal of labour 101.24* 2010-2011
involved in unregistered
sub contractors
Penalty @25% on Rs.49,83,168/- 12.46* 2010-2011
Nature of statute Forum where the disputes are pending
Karnataka VAT Joint commissioner of commercial Tax
(Appellate), Bangalore
Karnataka Appellate Tribunal
Joint Commissioner of commercial Tax
(Appeals), Bangalore
Joint commissioner of commercial Tax
(Appeals), Bangalore
Kerala VAT Appellate Assistant Commissioner
Andhra Pradesh VAT DCTO, Kurnool
DCTO, Kurnool
* Paid under protest / Paid fully ** 50% paid balance through BG ***
Adjusted against the Income Tax refund to the extent of Rs.685.05 Lacs.
(x) The Company has neither accumulated losses as at March 31, 2012 nor
incurred cash losses in the current financial year and in the
immediately preceding financial year.
(xi) According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or banks as at the
balance sheet date. There are no debenture holders for the company.
(xii) According to the information and explanations given to us, the
Company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) The provisions of any Special Statute applicable to Chit Fund,
Nidhi or Mutual Benefit Fund / Societies are not applicable to the
Company.
(xiv) In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
(xv) The Company has given corporate guarantee to the Bankers of its
wholly owned subsidiary and AOP for the facilities extended by the said
Bankers. In our opinion and according to the information and
explanations given to us, the terms & conditions of such corporate
guarantee are not prejudicial to the interest of the company.
(xvi) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
(xvii) According to the information and explanations given to us and on
the basis of our examination of the Accounts, we report that no funds
raised on short-term basis have been used for long-term investments.
(xviii) The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Companies Act, 1956 during the year.
(xix) During the year, the company has not issued any shares through
public offerings.
(xx) During the year, the company has not raised any money by public
issue.
(xxi) 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, and according to the information and
explanations given to us, no fraud on or by the company noticed or
reported during the year, nor we have been informed of such case by the
management.
For ASA & ASSOCIATES
Firm Regn. No.: 009571N
Chartered Accountants
K. VENKATRAMAN
Place : Chennai Partner
Date : May 12, 2012 Membership No.: 200/21914
Mar 31, 2011
1. We have audited the attached Balance Sheet of CONSOLIDATED
CONSTRUCTION CONSORTIUM LIMITED (the company) as at 31st March, 2011
and the related statements of Profit & Loss and Cash Flows for the year
ended, prepared in conformity with the accounting principles generally
accepted in India. These financial statements are the responsibility of
the companys management. Our responsibility is to express an opinion
on these financial statements based on our Audit.
2. We conducted our Audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. We have obtained all the information and explanations, which to the
best of our knowledge and belief, were necessary for the purposes of
our audit.
4. In our opinion, and to the best of our information and according to
the explanations given to us, the accompanying financial statements:-
a) Give the required information by the Companies Act, 1956 in the
manner so required.
b) Give a true and fair view of the state of affairs of the Company as
at March 31,2011 and of its related statements of profit & loss and
cash flows for the year ended, in conformity with the accounting
principles generally accepted in India.
c) Further, the Balance Sheet and statement of Profit and Loss comply
with the Accounting Standards referred to in Section 211(3C) of the Act
and are in agreement with the Books of Account.
d) In our opinion, the Company has maintained proper Books of Account
as required by law in so far as appears from our examination of those
Books.
5. On the basis of information and explanations given to us, and
representations obtained by the Company and taken on record by the
Board of Directors, as on March 31,2011 none of the Directors are
disqualified from being appointed as Directors in terms of Section
274(1)(g) of the Companies Act.
6. As required by the Companies (Auditors Report) Order, 2003, as
amended by the Companies (Auditors Report) (Amendment) Order, 2004,
and according to the information and explanations given to us during
the course of the audit and on the basis of such checks as were
considered appropriate, we enclose in the Annexure a statement on the
matters specified in Paragraphs 4 and 5 of the said Order.
ANNEXURE REFERRED TO IN PARAGRAPH 6 OF OUR REPORT OF EVEN DATE
(i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) As explained to us, the assets have been physically verified by the
management in accordance with a phased programme of verification,
which, in our opinion, is reasonable, considering the size and the
nature of the business. The frequency of verification is reasonable and
no material discrepancies were noticed on such physical verification.
c) The Company has not disposed of a substantial part of fixed assets
during the year so as to affect the going concern status of the
company.
(ii) a) As explained to us, the inventories including site materials,
stores and construction aids have been physically verified by the
management at reasonable intervals during the year. In our opinion, the
frequency of such verification is reasonable.
b) As per the information given to us, the procedures of physical
verification of inventory followed by the management are, in our
opinion, reasonable and adequate in relation to the size of the Company
and the nature of its business.
c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
book records were not material.
(iii) a) According to the information and explanations given to us, the
company has granted unsecured loans to its subsidiary company, covered
in the register maintained under Section 301 of the Companies Act,
1956. No Interest is charged on the above loan. Further, in the absence
of any stipulated schedule, the aspect of receipt of principal amount
and as well as overdue doesnt arise. On the basis of check and
verification, the said loan being unsecured, is not prima facie
prejudicial to the interests of the company.
i. No. of parties involved - 5
ii. Amount involved - Rs. 152,19,71,091/-
b) According to the information and explanations given to us, the
Company has not taken any loans, secured or unsecured, from companies,
firms and other parties covered in the register maintained under
section 301 of the Companies Act, 1956. Accordingly, paragraphs
4(iii)(c) and (d) of the Order are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to the purchase of Site materials, fixed assets
etc., and for carrying out the contracts and related activities.
Further, on the basis of our 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 systems.
(v) a. In our opinion and according to the information and explanations
given to us, the contracts or arrangements referred to in Section 301
of the Companies Act, 1956, have been so entered.
b. In our opinion and according to the information explanations given
to us, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposits from the Public and
accordingly the provisions of Section 58A and 58AA of the Companies
Act, 1956, and the Companies (Acceptance of Deposits) Rules, 1975 are
not applicable.
(vii) In our opinion, the Company has an adequate internal audit system
commensurate with its size and nature of its business.
(viii) As the company is in the service industry, no cost records have
been prescribed under the Provisions of Section 209(l)(d) of the
Companies Act, 1956.
(ix) a. According to the information and explanations given to us and
the records of the Company examined by us, the Company is regular in
depositing undisputed statutory dues including Provident Fund, Income
Tax, Sales Tax, Service Tax, Customs Duty, Cess, Excise duty and other
material statutory dues as applicable with the appropriate authorities.
b. According to the information and explanations given to us and the
records of the company examined by us, there are no dues of Income tax,
Wealth Tax, Cess, Excise Duty, Customs Duty, which have not been
deposited on account of any dispute. The particulars of Sales Tax,
Service Tax and Income Tax, as at March 31,2011 which have not been
deposited on account of the disputes are as under.
Nature of Statute Nature of the Amount
disputed dues (Rs. in Million)
Income Tax Act, 1961 Provision made in respect of 2.54 (*)
Managerial Remuneration for
which approval was obtained
subsequent to Balance sheet
date but before finalization of
Accounts
Disallowance of Trade Licence 22.57
Fee (Samruddhi Holdings)
Disallowance of Trade Licence 12.40
(Samruddhi Holdings),
Disallowance of Additional
Depreciation on RMC Batching Plant
Disallowance u/s l4A for income 94.58
on mutual fund and Disallowance
Service Tax Applicability of Rate consequent 4.97
to change in rate of Service Tax
under Works Composition Scheme
3.17
Utilisation of Cenvat Credit in 63.72
excess of 20% of Service Tax
payable and wrong availment of
Input service on Initial Public
Offer (IPO) related service
Non-payment of service tax on 1.84
Constructon of British High
Commission & sub-contractor
Technip Karaikkal.
Service Tax demand on retention 43.65
monies held by client. Though it
is not received by us, it forms
part of gross amount.
Capital Goods landed in SEZ for 0.97
which duty discharged and
correspondingly Input Credit taken
CENVAT Credit on Capital Goods 133.84
utilized in discharging Service
Tax where Notification 1/2006 is
availed
802.20
Karnataka VAT Right of state to levy VAT at a 17.01*
higher rate, in respect of
declared goods (Steel)
57.70
Karnataka VAT Disallowance of Margin on 3.54
sub-contract portion, Security
Service and Repair Service.
3.42**
West Bengal VAT Disallowance for charges and
expenses 0.09
towards labour service and other
related charges
Kerala VAT Sales made to SEZ claimed 5.51
as exempt (Extension of Commissioner
benefit in KGST sought)
Nature of Statute Periods to Forum where the
disputes are pending
which the
amount relates
Income Tax Act, 1961 2004-05 Commissioner of Income Tax
(Appeals) - V
Chennai
2005-05 Commissioner of Income Tax
(Appeals)- III, Chennai
2006-2007 Commissioner of Income Tax
(Appeals)- III, Chennai
2007-2008 Commissioner of Income Tax
(Appeals)- III, Chennai
Service Tax 2007-2008 Central Excise Service Tax
Appellate Tribunal (CESTAT)
(upto Mar.08)
2008-2009 Joint Commissioner of
(upto Mar.08) Service Tax
2007-2008 Commissioner of Service
Tax
2008-2009 Commissioner of Service
Tax
2008-2009 Commissioner of Service
Tax
2008-2009 Commissioner of Service
(from Oct.08) Tax
2006-2007 Central Excise Service
2007-2008& Tax Appellate Tribubal
2008-2009
upto Sep.2008 (CESTAT)
KarnatakaVAT 2006-07 Joint Commissioner of
Commercial Tax
(Appeals), Bangalore
2007-08 Karnataka Appellate
Tribunal
Karnataka VAT
2008-09 Joint Commissioner of
(from Aug.08) Commercial Tax
(Appeals), Bangalore
2009-2010 Joint Commissioner of
Commercial Tax
(Appeals), Bangalore
West Bengal VAT 2007-2008 Senior Joint Commissioner
KeralaVAT 2005-06 Appellate Assistant
Commissioner
(x) The Company has neither accumulated losses as at March 31, 2011 nor
incurred cash losses in the current financial year and in the
immediately preceding financial year.
(xi) According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or banks as at the
Balance Sheet date. There are no debenture holders for the Company.
(xii) According to the information and explanations given to us, the
Company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) The provisions of any Special Statute applicable to Chit Fund,
Nidhi or Mutual Benefit Fund / Societies are not applicable to the
Company.
(xiv) In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
(xv) The Company has given Corporate Guarantee to the Bankers of its
Wholly Owned Subsidiary and AOP for the facilities extended by the said
Bankers. In our opinion and according to the information and
explanations given to us, the terms & conditions of such Corporate
Guarantee are not prejudicial to the interest of the company.
(xvi) In our opinion and according to the information and explanations
given to us, the Term Loans have been applied for the purposes for
which they were obtained.
(xvii) According to the information and explanations given to us and on
the basis of our examination of the Accounts, we report that no funds
raised on short-term basis have been used for long-term investments.
(xviii)The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Companies Act, 1956 during the year.
(xix) During the year, the company has not issued any shares through
public offerings.
(xx) During the year, the company has not raised any money by public
issue.
(xxi) 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, and according to the information and
explanations given to us, no fraud on or by the company have been
noticed or reported during the year, nor we have been informed of such
case by the management.
For ASA & ASSOCIATES
Chartered Accountants
K. VENKATRAMAN
Partner
Membership No.: 200/21914
Firm Regn. No.: 009571N
Place : Chennai
Date: April 28, 2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of CONSOLIDATED
CONSTRUCTION CONSORTIUM LIMITED (the company) as at 31st March, 2010
and the related statements of Profit & Loss and Cash Flows for the year
ended, prepared in conformity with the accounting principles generally
accepted in India. These financial statements are the responsibility of
the companys management. Our responsibility is to express an opinion
on these financial statements based on our Audit.
2. We conducted our Audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
3. We have obtained all the information and explanations, which to the
best of our knowledge and belief, were necessary for the purposes of
our audit.
4. In our opinion, and to the best of our information and according to
the explanations given to us, the accompanying financial statements:-
a) Give the required information by the Companies Act, 1956 in the
manner so required.
b) Give a true and fair view of the state of affairs of the Company as
at March 31,2010 and of its related statements of profit & loss and
cash flows for the year then ended, in conformity with the accounting
principles generally accepted in India.
c) Further, the Balance Sheet and statement of Profit and Loss comply
with the Accounting Standards referred to in Section 211(3C) of the Act
and are in agreement with the Books of Account.
d) In our opinion, the Company has maintained proper Books of Account
as required by law in so far as appears from our examination of those
Books.
5. On the basis of information and explanations given to us, and
representations obtained by the Company and taken on record by the
Board of Directors, as on March 31,2010 none of the Directors are
disqualified from being appointed as Directors in terms of Section
274(l)(g) of the Companies Act.
6. As required by the Companies (Auditors Report) Order, 2003, as
amended by the Companies (Auditors Report) (Amendment) Order, 2004,
and according to the information and explanations given to us during
the course of the audit and on the basis of such checks as were
considered appropriate, we enclose in the Annexure a statement on the
matters specified in Paragraphs 4 and 5 of the said Order.
ANNEXURE REFERRED TO IN PARAGRAPH 6 OF OUR REPORT OF EVEN DATE
(i) a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b) As explained to us, the assets have been physically verified by the
management in accordance with a phased programme of verification,
which, in our opinion, is reasonable, considering the size and the
nature of the business. The frequency of verification is reasonable and
no material discrepancies were noticed on such physical verification.
c) The Company has not disposed of a substantial part of fixed assets
during the year so as to affect the going concern status of the
company.
(ii) a) As explained to us, the inventories including site materials,
stores and construction aids have been physically verified by the
management at reasonable intervals during the year. In our opinion, the
frequency of such verification is reasonable.
b) As per the information given to us, the procedures of physical
verification of inventory followed by the management are, in our
opinion, reasonable and adequate in relation to the size of the Company
and the nature of its business.
c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
book records were not material.
(iii) a) According to the information and explanations given to us, the
company has granted unsecured loans to a subsidiary company, covered in
the register maintained under Section 301 of the Companies Act, 1956.
No Interest is charged on the above loan. Further, in the absence of
any stipulated schedule, the aspect of receipt of principal amount and
as well overdue doesnt arise. On the basis of check and verification,
the said loan being unsecured, is not prima facie prejudicial to the
interests of the company.
i. No. of parties involved - 2
ii. Amount involved - Rs.10,76,23,667/-
b) According to the information and explanations given to us, the
Company has not taken any loans, secured or unsecured, from companies,
firms and other parties covered in the register maintained under
section 301 of the Companies Act, 1956. Accordingly, paragraphs
4(iii)(f) and (g) of the Order are not applicable.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to the purchase of Site materials, etc., fixed
assets and for carrying out the contracts and related activities.
Further, on the basis of our 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 systems.
(v) a. In our opinion and according to the information and explanations
given to us, the contracts or arrangements referred to in Section 301
of the Companies Act, 1956, have been so entered.
b. In our opinion and according to the information explanations given
to us, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to the prevailing market prices at the relevant time.
(vi) The Company has not accepted any deposits from the Public and
accordingly the provisions of Section 58A and 58AA of the Companies
Act, 1956, and the Companies (Acceptance of Deposits) Rules, 1975 are
not applicable.
(vii) In our opinion, the Company has an adequate internal audit system
commensurate with its size and nature of its business.
(viii) As the company is in the service industry, no cost records have
been prescribed under the Provisions of Section 209(l)(d) of the
Companies Act, 1956.
(ix) a. According to the information and explanations given to us and
the records of the Company examined by us, the Company is regular in
depositing undisputed statutory dues including Provident Fund, Income
Tax, Sales Tax, Service Tax, Customs Duty, Cess, Excise duty and other
material statutory dues as applicable with the appropriate authorities.
b. According to the information and explanations given to us and the
records of the company examined by us, there are no dues of Income Tax,
Wealth Tax, Cess, Excise Duty, Customs Duty, Service Tax, Sales
Tax(VAT) which have not been deposited on account of any dispute other
than the following particulars as at March 31,2010.
Nature of Statute Nature of the Amount
disputed dues (Rs. in Million)
Service Tax Availment of cenvat 559.30
(Finance Act, 1994) credit on capital goods
in respect of services
rendered under
Notification 1/2006
Income Tax Act, 1961 i. Provision made 2.54 (*)
in respect of Managerial
Remuneration
for which approval was
obtained subsequent to
Balance Sheet date but
before finalization
of Accounts
ii. Disallowance of 57.3
certain expenses.
KarnatakaVAT i. Right of state to levy
VAT at a 17.21 (**)
higher rate,in respect of
declared goods (Steel) 44.39
iii. Right of state to levy
VAT at a 57.70
higher rate,in respect of
declared goods (Steel)
iii. Disallowance of Margin on 2.97
sub-contract portion, security
service and repair service.
Kerala VAT Sales made to SEZ claimed 5.51
as exempt (Extension of
benefit in KGST sought)
DelhiVAT ii. Value of work certified
shall be 8.35
considered as taxable turnover
in lieu of receipt basis.
Nature of Statue Periods to Forum where the
which the dispute are pending
amount relates
Service Tax
(Finance Act, 1994) 2006-07 & Commissioner of
part of Service Tax,
2007-08 Chennai for
Adjudication
Income Tax Act, 1961 2004-05 Commissioner of
Income Tax
(Appeals)-V
Chennai
2005-06 Commissioner of
Income Tax (Appeals) - III
Karnataka VAT 2006-07 Joint Commissioner of
Commercial Tax
Part of (Appeals), Bangalore
2007-08 Karnataka Appleate
Tribunal
Part of 2008-09 Joint Commissioner of
Commercial Tax
(Appeals), Bangalore
Kerala VAT 2005-06 Appellate Assistant
Commissioner
Delhi VAT 2007-08 Commissioner of
Commercial Tax DVAT
(*) Paid on account / under protest. (**) Paid on account / under
protest Rsl7.21 Million
(x) The Company has neither accumulated losses as at March 31, 2010 nor
incurred cash losses in the current financial year and in the
immediately preceding financial year.
(xi) According to the records of the Company examined by us and the
information and explanations given to us, the Company has not defaulted
in repayment of dues to any financial institution or banks as at the
balance sheet date. There are no debenture holders for the company.
(xii) According to the information and explanations given to us, the
Company has not granted any loans or advances on the basis of security
by way of pledge of shares, debentures and other securities.
(xiii) The provisions of any Special Statute applicable to Chit Fund,
Nidhi or Mutual Benefit Fund / Societies are not applicable to the
Company.
(xiv) In our opinion and according to the information and explanations
given to us, the Company is not a dealer or trader in shares,
securities, debentures and other investments.
(xv) The Company has given corporate guarantee to the Bankers of its
wholly owned subsidiary and AOP for the facilities extended by the said
Bankers. In our opinion and according to the information and
explanations given to us, the terms & conditions of such corporate
guarantee are not prejudicial to the interest of the company.
(xvi) In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
(xvii) According to the information and explanations given to us and on
the basis of our examination of the Accounts, we report that no funds
raised on short-term basis have been used for long-term investments.
(xviii)The Company has not made preferential allotment of shares to
parties and companies covered in the register maintained under Section
301 of the Companies Act, 1956 during the year.
(xix) During the year, the company has not issued any secured
debentures.
(xx) During the year, the Company has not issued any shares through
Public Issue.
(xxi) 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, and according to the information and
explanations given to us, no fraud on or by the company noticed or
reported during the year, nor we have been informed of such case by the
management.
For MURALI ASSOCIATES
Chartered Accountants
K. VENKATRAMAN
Partner
Membership No.: 200/21914
Firm Regn. No.: 002164S
Place: Chennai
Date : April 28, 2010
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