Mar 31, 2018
Report on the Standalone Financial Statements
We have audited the accompanying standalone Ind-AS financial statements of PrakashConstrowell Limited ("the Company"), which comprise the Balance Sheet as at March 31, 2018, and the Statement of Profit and Loss including the Statement of Other Comprehensive Income, the Cash Flow Statement for the year then ended, and the Statement of Changes in Equity for the year then ended and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation and presentation of these standalone
Ind-AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and the changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, and Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the 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 Ind-AS standalone financial statements based on our audit. We have taken into account the provisions of the Act and the rules made thereunder. We conducted our audit in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India, as specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the I nd-AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the Ind-AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation and fair presentation of the Ind-AS financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the Ind-AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Ind-AS standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind-AS standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2018, and its profit, total comprehensive income, its cash flows and the changes in equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure- A statement on the matters specified in the 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 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 including Other Comprehensive Income, the Statement of Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the relevant books of account;
d. in our opinion, the aforesaid Standalone Ind-AS Financial Statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with read with relevant rules issued thereunder;
e. on the basis of written representations received from the directors as on March 31, 2018, and taken on record by the Board of Directors, none of the directors are disqualified as on March 31, 2018, from being appointed as a director in terms of Section 164 (2) of the Act;
f. With respect to adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer our separate Report in Annexure- B. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companyâs internal financial controls over financial reporting; and
g. With respect to the other matters to be included in Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion to the best of information and according to the explanation given to us:
1. The company has disclosed the impact of pending litigations in its financial statements. - Refer note 30(A) of the Standalone financial statement.
2. The company does not have any long term contract. The company was not required to make any provisions for material foreseeable losses.
3. The company was not required to deposit or pay any dues in respect of the Investor Education and Protection fund during the year.
The Annexure referred to in our Independent Auditorâs Report to the members of PrakashConstrowell Limited on standalone Ind-AS financial statements for the year Ended on 31/03/2018. We report that:
1) In respect of fixed assets:
(a) The Company is maintaining proper record to show full particulars including, quantitative details and situation of all fixed assets on the basis of available information.
(b) We are informed that the company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years. In accordance with this programme, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to size of the Company and the nature of its assets.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
2) In respect of its inventories:
(a) As explained to us, inventories i.e. WIP of construction activity 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. As explained to us, there were no material discrepancies noticed on physical verification of inventories as compared to the book records.
3) According to the information and explanation given to us, The Company has not granted any loans to the companies, firms and other parties covered in register maintained under section 189 of the companies act, 2013. Accordingly, paragraph 3(iii) of the order is not applicable.
4) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section185 and 186 of the Act, with respect to the loans and investments made.
5) According to the information and explanation given to us, the Company has not accepted any deposits from the public and accordingly, paragraph 3(v) of the Order is not applicable.
6) We have broadly reviewed the books of account and record maintained by the Company pursuant to the rules prescribed by the Central Government for the maintenance of the cost records under section 148(1) of the Companies Act, 2013 in respect of all its construction activities and are of the opinion that prima facie the prescribed accounts and records have been made and maintained. The contents of these accounts and records have not been examined by us.
7) (a) According to the information and explanations given to us and the records of the company examined by us, the company is generally regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, employee''s state insurance, income tax, service tax, sales tax, tax deducted at source, cess and other material statutory dues applicable to it.
According to the information and explanations given to us and the records of the company examined by us, Service Tax amounting to Rs. 12,63,084 is payable undisputed which were in arrears, as at 31st March 2018 for a period of more than six months from the date they becomes payable.
(b) According to the information and explanations given to us the following dues of income tax, sales tax, service tax and value added tax have not been deposited by the Company on account of disputes:
Name of Statue |
Nature of Dues |
Amount Rs. (Rs. In Lakh) |
Period to which amount related |
Forum where Dispute is Pending |
Income Tax Act 1961 |
Income tax assessment dues under Section 153A of the act. |
14.11 |
2010-11 |
Assistant Commissioner of Income Tax (Appeals) |
345.74 |
2011-12 |
|||
2774.77 |
2012-13 |
|||
227.48 |
2013-14 |
8) According to the records of the company examined by us and information and explanations given to us, the company has not defaulted in repayment of dues to any financial institutions or bank as at the balance sheet date. And Company does not have any loans or borrowings from government or debenture holders during the year.
9) The Company did not raise any money by way of initial public offer or future public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3(ix) of the Order is not applicable.
10) According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
11) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid or provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
12) In our Opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
13) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with Sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
14) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
15) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly paragraph 3(xv) of the Order is not applicable.
16) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
Annexure B to Independent Auditors'' Report
Referred to in paragraph 2(f) of the Independent Auditors'' Report of even date to the members of Prakash Constrowell Limited on the Ind-AS standalone financial statements for the year ended 31 March 2018
Report on the internal financial controls under clause (i) of sub-section 3 of section 143 of the Act
1. We have audited the internal financial controls over financial reporting of Prakash Constrowell Ltd. (âthe Companyâ) as of 31 March 2018 in conjunction with our audit of the Ind-AS standalone financial statements of the Company for the year ended on that date.
Managementâs responsibility for internal financial controls
2. The Companyâs Management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (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 Act.
Auditors'' responsibility
3. Our responsibility is to express an opinion on the companyâs internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing deemed to be prescribed under section 143(10) of the Act to the extent applicable to an audit of internal financial controls, both applicable to an audit an internal financial controls and both issued by the ICAI. 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.
4. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statement, whether due to fraud or error.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of internal controls over financial reporting
6. A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statement for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the companyâs assets that could have a material effect on the financial statements.
Inherent Limitations of internal financial controls over financial reporting
7. Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of change in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
8. In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For JPL & Associates
Chartered Accountants
(FRN: 132748W)
CA Harshal Jethale
Place: Nashik Partner
Date: 28.05.2018 M. No: 141162
Mar 31, 2016
Report on the Standalone Financial Statements
We have audited the accompanying financial statements of Prakash Constrowell Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2016, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the 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 and fair presentation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the company has in place an adequate internal financial controls systems over financial reporting and operating effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by 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 standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2016, and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditorâs Report) Order, 2015 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure- A a statement on the matters specified in the paragraphs 3 and 4 of the Order, to the extent applicable.
As required by section 143 (3) of the Act, we report that:
a. we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;
b. in our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account;
d. in our opinion, the aforesaid Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
e. on the basis of written representations received from the directors as on March 31, 2016, and taken on record by the Board of Directors, none of the directors are 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 adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer our separate Report in Annexure- B.
g. With respect to the other matters to be included in Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion to the best of information and according to the explanation given to us:
1. The company has disclosed the impact of pending litigations in its financial statements. - Refer note 25(a) of the Standalone financial statement.
2. The company does not have any long term contract. The company was not required to make any provisions for material foreseeable losses.
3. The company was not required to deposit or pay any dues in respect of the Investor Education and Protection fund during the year.
The Annexure referred to in our Independent Auditorâs Report to the members of Prakash Constrowell Limited on standalone financial statements for the year Ended on 31/03/2016 . We report that:
1) In respect of fixed assets:
(a) The Company is maintaining proper record to show full particulars including, quantitative details and situation of all fixed assets on the basis of available information.
(b) We are informed that the company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of three years. In accordance with this programme, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to size of the Company and the nature of its assets.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
2) In respect of its inventories:
(a) As explained to us, inventories i.e. WIP of construction activity 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. As explained to us, there were no material discrepancies noticed on physical verification of inventories as compared to the book records.
3) According to the information and explanation given to us, The company has not granted any loans to the companies, firms and other parties covered in register maintained under Section 189 of the Companies Act, 2013. Accordingly, paragraph 3(iii) of the order are not applicable.
4) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section185 and 186 of the Act, with respect to the loans and investments made.
5) According to the information and explanation given to us, the Company has not accepted any deposits from the public and accordingly, paragraph 3(v) of the Order is not applicable.
6) We have broadly reviewed the books of account and record maintained by the Company pursuant to the rules prescribed by the Central Government for the maintenance of the cost records under Section 148(1) of the Companies Act, 2013 in respect of all its construction activities and are of the opinion that prima facie the prescribed accounts and records have been made and maintained. The contents of these accounts and records have not been examined by us.
7) (a) According to the information and explanations given to us and the records of the company examined by us, the company is generally regular in depositing with appropriate authorities undisputed statutory dues including Provident Fund, Employee''s State Insurance, Income Tax, Service Tax, Sales Tax, Tax Deducted at Source, Cess and other material statutory dues applicable to it.
(a) According to the information and explanations given to us and the records of the company examined by us, there were no undisputed amounts payable in respect of Income Tax, Service Tax, Sales Tax and other statutory dues which were arrears, as at 31st March 2016 for a period of more than six months from the date they becomes payable.
(b) According to the information and explanations given to us the following dues of Income Tax, Sales Tax, Service Tax and Value added Tax have not been deposited by the Company on account of disputes:
Name of Statue |
Nature of Dues |
Amount (Rs. In Lakh) |
Period to which amount relates |
Forum where Dispute is Pending |
Income Tax Act 1961 |
Income Tax Assessment |
35.15 |
2007-08 |
Assistant Commissioner of |
|
dues under Section 153A |
20.04 |
2009-10 |
Income Tax (Appeals) |
|
of the Act. |
14.11 |
2010-11 |
|
|
|
345.74 |
2011-12 |
|
|
|
2774.77 |
2012-13 |
|
|
|
227.48 |
2013-14 |
|
8) According to the records of the company examined by us and information and explanations given to us, the company has not defaulted in repayment of dues to any financial institutions or bank as at the balance sheet date. And Company does not have any loans or borrowings from government or debenture holders during the year.
9) The Company did not raise any money by way of initial public offer or future public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3(ix) of the Order is not applicable.
10) According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
11) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid or provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
12) In our Opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3(xii) of the Order is not applicable.
13) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with Sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
14) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
15) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly paragraph 3(xv) of the Order is not applicable.
16) The Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act 1934.
For G. P. Pimpalikar & Associates
Chartered Accountants
(FRN: 119343W)
Sd/-
Place: Nashik G. P. Pimpalikar
Date: 30.05.2016 Proprietor
Membership No: 107120
Mar 31, 2015
We have audited the accompanying financial statements of Prakash
Constrowell Limited ("the Company"), which comprise the Balance Sheet
as at March 31, 2015, and the Statement of Profit and Loss and Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation and presentation of these standalone financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provisions of the act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
there under.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal financial control relevant to the Company's
preparation and fair presentation of the financial statements that give
a true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the company has in place an adequate internal
financial controls systems over financial reporting and operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by 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 standalone
financial statements.
Opinion
In our opinio n and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information required by the Act in the manner so required and
give a true and fair view in conformity with the accounting principles
generally accepted in India:
a. in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
b. in the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
c. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in the 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
purpose of our audit;
b. in our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
those books;
c. the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account ;
d. in our opinion, the aforesaid Balance Sheet, Statement of Profit
and Loss, and Cash Flow Statement comply with the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014;
e. on the basis of written representations received from the directors
as on March 31, 2015, and 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 Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion to the best of information and according to
the explanation given to us:
1. The company has disclosed the impact of pending litigations in its
financial statements. - Refer note 26(a) of the Standalone financial
statement.
2. The company does not have any long term contract. The company was
not required to make any provisions for material foreseeable losses.
3. The company was not required to deposit or pay any dues in respect
of the Investor Education and Protection fund during the year.
Annexure to the Auditors' Report
The Annexure referred to in our Independent Auditor's Report to the
members of Prakash Constrowell Limited on standalone financial
statements for the year Ended on 31/03/2015 We report that:
1) In respect of fixed assets:
(a) The Company is maintaining proper record to show full particulars
including, quantitative details and situation of all fixed assets on
the basis of available information.
(b) We are informed that the company has formulated a programme of
physical verification of all the fixed assets during the year which, in
our opinion, is reasonable having regards to the size of the company
and the nature of its assets. Accordingly, the physical verification of
the fixed assets has been carried out by management during the year and
no material discrepancies were noticed on such verification.
2) In respect of its inventories:
(a) As explained to us, inventories i.e. WIP of construction activity
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. As
explained to us, there were no material discrepancies noticed on
physical verification of inventories as compared to the book records.
3) According to the information & explanation given to us,The company
has not granted any loans to the companies, firms and other parties
covered in register maintained under section 189 of the companies act,
2013. Accordingly, paragraph 3(iii) (a) and (b) of the order are not
applicable.
4) In our opinion and according to the information and explanation
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business for the
purchase of inventory, fixed assets and for the sale of goods and
secvices. Further, on the basis of our examination of the books and
record of the company, and according to the information and explanation
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.
5) According to the information and explanation given to us, The
Company has not accepted any deposits from the public and accordingly,
paragraph 3(v) of the Order is not applicable.
6) We have broadly reviewed the books of account and record maintained
by the Company pursuant to the rules prescribed by the Central
Government for the maintenance of the cost records under section 148(1)
of the Companies Act, 2013 in respect of all its construction
activities and are of the opinion that prima facie the prescribed
accounts and records have been made and maintained. The contents of
these accounts and records have not been examined by us.
7) (a) According to the information and explanations given to us and
the records of the company examined by us, the company is generally
regular in depositing with appropriate authorities undisputed statutory
dues including Provident Fund, employee's state insurance, income tax,
service tax, sales tax, tax deducted at source, cess and other material
statutory dues applicable to it. According to the information and
explanations given to us and the records of the company examined by us,
there were no undisputed amounts payable in respect of income tax,
service tax, sales tax and other statutory dues which were arrears, as
at 31st March 2015 for a period of more than six months from the date
they becomes payable.
(b) According to the inform t ion and explanations given to us and the
record of the company examined by us, there were no statutory dues
which have not been deposited on account of any dispute pending.
(c) The company was not required to deposit or pay any dues in respect
of the Investor Education and Protection fund during the year in
accordance with the relevant provisions of the Companies Act, 1956(1 of
1956) and rules there under.
8) The company has no accumulated losses as at 31st March 2015 and it
has not incurred cash losses in the financial year ended on that date
or in the immediately preceding financial year.
9) According to the records of the company examined by us and
information and explanations given to us, the company has not defaulted
in repayment of dues to any financial institutions or bank as at the
balance sheet date.
10) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from bank
or financial institutions.
11) According to the information and explanations given to us and the
records of the company examined by us, the company has applied the term
loans on the overall basis for the purpose for which they were raised.
12) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
information and explanations given by the management, we have neither
come across any instances of fraud on or by the company, noticed or
reported during the year, nor have we been informed of such case by the
management.
For G. P. Pimpalikar & Associates
Chartered Accountants
(FRN: 119343W)
Place: Nashik G. P. Pimpalikar
Date: 30.05.2015 Proprietor
Membership No: 107120
Mar 31, 2014
We have audited the accompanying financial statements of Prakash
Constrowell Limited ("the Company"), which comprise the Balance Sheet
as at March 31, 2014, and the Statement of Profit and Loss and Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s 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 and in accordance with the
accounting principles generally accepted in India. This responsibility
includes the design, implementation and maintenance of internal control
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor''s Responsibility
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, but not for the
purpose of expressing an opinion on the effectiveness of the Company''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
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 Profit and Loss Account, of the profit of the
company for the year ended on that date; and
c. in the case of the Cash Flow Statement, of the cash flows of the
company 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 Annexu re 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, Statement of Profit and Loss, and
Cash Flow Statement comply with Accounting Standards notified under the
Act read with the General Circular 15/2013 dated 13th September, 2013
of the Ministry of Corporate affairs in respect of Section 133 of the
Companies Act, 2013;
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 Auditor''s Report
(Referred to in paragraph (1) under the heading of ''Report on Other
Legal and Regulatory Requirements'' of our report of even
date)
1) In respect of fixed assets:
(a) The Company is maintaining proper record to show full particulars
including, quantitative details and situation of all fixed assets on
the basis of available information.
(b) We are informed that the company has formulated a programme of
physical verification of all the fixed assets during the year which, in
our opinion, is reasonable having regards to the size of the company
and the nature of its assets. Accordingly, the physical verification of
the fixed assets has been carried out by management during the year and
no material discrepancies were noticed on such verification.
(c) The company has not disposed off any substantial part of its fixed
assets so as to affect its going concern status.
2) In respect of its inventories:
(a) As explained to us, inventories i.e. WIP of construction activity
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. As
explained to us, there were no material discrepancies noticed on
physical verification of inventories as compared to the book records.
3) (a) According to the information and explanation given to us, the
company has not granted any loans, secured or unsecured, to companies,
firms and other parties covered in the register maintained under
Section 301 of Companies Act, 1956. Accordingly, paragraph 4(iii) (b),
(c) and (d) of the order are not applicable.
(b) According to the information and explanation 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 Companies Act, 1956. Accordingly, paragraph 4(iii) (f)
and (g) of the order are not applicable.
4) (a) In our opinion and according to the information and explanation
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business for the
purchase of inventory, fixed assets and sales. Further, on the basis of
our examination of the books and record of the company, and according
to the information and explanation 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.
5) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of the contracts or
arrangements that need to be entered in the register
maintained under section 301 of the Companies Act, 1956 have been
entered.
(b) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of the such contracts
or arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at price which are
reasonable having regards to prevailing market prices at the relevant
time.
6) The Company has not accepted any deposits from the public as
stipulated under the provisions of Section 58 A and 58 AA of the
Companies, 1956 and rules framed there under.
7) In our opinion, the company has internal audit system commensurate
with its size and nature of its business.
8) We have broadly reviewed the books of account and record maintained
by the Company pursuant to the rules prescribed by the Central
Government for the maintenance of the cost records under section 209(1
)(d) of the Companies Act, 1956 and are of the opinion that prima facie
the prescribed accounts and records have been made and maintained. The
contents of these accounts and records have not been examined by us.
9) (a) According to the information and explanations given to us and
the records of the company examined by us, the company is generally
regular in depositing with appropriate authorities undisputed statutory
dues including Provident Fund, employee''s state insurance, income tax,
service tax, sales tax, tax deducted at source, cess and other material
statutory dues applicable to it.
(b) According to the information and explanations given to us and the
records of the company examined by us, there were no undisputed amounts
payable in respect of income tax, service tax, sales tax and other
statutory dues which were arrears, as at 31sl March 2014 for a period
of more than six months from the date they becomes payable.
c) According to the information and explanations given to us and the
record of the company examined by us, there were no statutory dues
which have not been deposited on account of any dispute pending.
10) The company has no accumulated losses as at 31s''1 March 2014 and it
has not incurred cash losses in the financial year ended on that date
or in the immediately preceding financial year.
11) According to the records of the company examined by us and
information and explanations given to us, the company has not defaulted
in repayment of dues to any financial institutions or bank as at the
balance sheet date.
12) According to 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.
13) In our opinion and according to the information and explanations
given to us, the nature of activities of the Company does not attract
any special statute applicable to chit fund and nidhi / mutual benefit
fund / societies. Accordingly, paragraph 4(xiii) (a), (b), (c) and
(d) of the order are not applicable
14) The Company has not dealt or traded in shares, securities,
debentures and other investments.
15) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from bank
or financial institutions.
16) According to the information and explanations given to us and the
records of the company examined by us, the company has applied the term
loans on the overall basis for the purpose for which they were raised.
17) According to the information and explanations given to us and on
overall examination of balance sheet of the company, we report that no
funds raised on short term basis have been used for long term
investment and vice versa.
18) During the financial year, the company has not made any
preferential allotment of shares to the parties and companies covered
in register maintained under Section 301 of the Companies Act, 1956.
19) The company has not issued debentures during the year.
20) The company has not raised money through a public issue during the
year.
21) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
information and explanations given by the management, we have neither
come across any instances of fraud on or by the company, noticed or
reported during the year, nor have we been informed of such case by the
management.
For M/s G. P. Pimpalikar and Associates
Chartered Accountants
(FRN:119343 W)
G. P. Pimpalikar
Place: Nashik Proprietor
Date: 30.05.2014 Membership No: 107120
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Prakash
Constrowell Limited ("the Company"), which comprise the Balance Sheet
as at March 31, 2013, and the Statement of Profit and Loss and Cash
Flow Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
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 Profit and Loss Account, of the profit for the
year ended on that date; and
c. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
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, Statement of Profit and Loss,
and Cash Flow Statement comply with the Accounting Standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956;
e. on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
Annexure to the Auditor''s Report
(Referred to in paragraph (1) under the heading of ''Report on Other
Legal and Regulatory Requirements'' of our report of even date)
1) In respect of fixed assets:
(a) The Company is maintaining proper record to show full particulars
including, quantitative details and situation of all fixed assets.
(b) We are informed that the company has formulated a programme of
physical verification of all the fixed assets during the year which, in
our opinion, is reasonable having regards to the size of the company
and the nature of its assets. Accordingly, the physical verification of
the fixed assets has been carried out by management during the year and
no material discrepancies were noticed on such verification.
(c) The company has not disposed off any substantial part of its fixed
assets so as to affect its going concern status.
2) In respect of its inventories:
(a) As explained to us, inventories i.e. WIP of construction activity
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. As
explained to us, there were no material discrepancies noticed on
physical verification of inventories as compared to the book records.
3) (a) According to the information and explanation given to us, the
company has not granted any loans, secured or unsecured, to companies,
firms and other parties covered in the register maintained under
Section 301 of Companies Act, 1956. Accordingly, paragraph 4(iii) (b),
(c) and (d) of the order are not applicable.
(b) According to the information and explanation 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 Companies Act, 1956. Accordingly, paragraph 4(iii) (f)
and (g) of the order are not applicable.
4) (a) In our opinion and according to the information and explanation
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business for the
purchase of inventory, fixed assets and sales. Further, on the basis of
our examination of the books and record of the company, and according
to the information and explanation 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.
5) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of the contracts or
arrangements that need to be entered in the register maintained under
section 301 of the Companies Act, 1956 have been entered.
(b) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of the such contracts
or arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at price which are
reasonable having regards to prevailing market prices at the relevant
time.
6) The Company has not accepted any deposits from the public as
stipulated under the provisions of Section 58A and 58AA of the
Companies, 1956 and rules framed there under.
7) In our opinion, the company has internal audit system commensurate
with its size and nature of its business.
8) We have broadly reviewed the books of account and record maintained
by the Company pursuant to the rules prescribed by the Central
Government for the maintenance of the cost records under section
209(1)(d) of the Companies Act, 1956 and are of the opinion that prima
facie the prescribed accounts and records have been made and
maintained. The contents of these accounts and records have not been
examined by us.
9) (a) According to the information and explanations given to us and
the records of the company examined by us, the company is generally
regular in depositing with appropriate authorities undisputed statutory
dues including Provident Fund, employee''s state insurance, income tax,
service tax, sales tax, tax deducted at source, cess and other material
statutory dues applicable to it.
(b) According to the information and explanations given to us and the
records of the company examined by us, there were no disputed amounts
payable in respect of income tax, service tax, sales tax and other
statutory dues which were arrears, as at 31st March 2013 for a period
of more than six months from the date they becomes payable.
c) According to the information and explanations given to us and the
record of the company examined by us, there were no statutory dues
which have not been deposited on account of any dispute pending.
10) The company has no accumulated losses as at 31st March 2013 and it
has not incurred cash losses in the financial year ended on that date
or in the immediately preceding financial year.
11) According to the records of the company examined by us and
information and explanations given to us, the company has not defaulted
in repayment of dues to any financial institutions or bank as at the
balance sheet date.
12) According to 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.
13) In our opinion and according to the information and explanations
given to us, the nature of activities of the Company does not attract
any special statute applicable to chit fund and nidhi / mutual benefit
fund / societies.
14)The Company does not dealt or trade in shares, securities,
debentures and other investments.
15) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from bank
or financial institutions.
16) According to the information and explanations given to us and the
records of the company examined by us, the company has applied the term
loans on the overall basis for the purpose for which they were raised.
17) According to the information and explanations given to us and on
overall examination of balance sheet of the company, we report that no
funds raised on short term basis have been used for long term
investment and vice versa.
18)During the financial year, the company has not made any preferential
allotment of shares to the parties and companies covered in register
maintained under Section 301 of the Companies Act, 1956.
19)The company has not issued debentures during the year.
20)The company has not raised money through a public issue during the
year.
21) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
information and explanations given by the management, we have neither
come across any instances of fraud on or by the company, noticed or
reported during the year, nor have we been informed of such case by the
management.
For M/s G. P. Pimpalikar and Associates
Chartered Accountants
(FRN: 119343W)
G. P. Pimpalikar
Place: Nashik Proprietor
Date: 27.05.2013 Membership No: 107120
Mar 31, 2012
We have audited the attached Balance Sheet of Prakash Constrowell
Limited ('the Company') as at 31st March 2012, the statement of Profit
and Loss and the Cash Flow Statement for the year ended on that date
annexed thereto (together referred to as 'financial statements'). 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.
We conducted our audit in accordance with the auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit
includes examining, on test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall presentation of the
financial statements. We believe that our audit provides a reasonable
basis for our opinion.
In accordance with the provisions of Section 227 of Companies Act, 1956
we report that:
1. As required by the Companies (Auditor's Report) Order, 2003
('Order') issued by the Central Government of India under sub- section
(4A) of section 227 of the Companies Act, 1956, and on the basis of
verification of books and record of the Company as we considered
appropriate and according to the information and explanation given to
us, we enclose in the Annexure a statement on the matters specified in
paragraphs 4 and 5 of the said Order.
2. Further to our comments in the Annexure referred to above, we
report that :
a) We have obtained all the information and explanations, which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion, proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
c) The Balance Sheet, Profit and Loss Account and the Cash Flow
statement dealt with, by this report are in agreement with the books of
account;
d) In our opinion, the Balance Sheet, statement of Profit and Loss and
Cash Flow Statement dealt with by this report comply with the
accounting standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956, to the extent applicable;
e) On the basis of written representation received from the directors
and taken on record by the Board of Directors of the Company, we report
that none of the directors are disqualified as on 31.03.2012 from being
appointed as director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, said accounts read together with
significant accounting policies & notes appearing thereon, gives the
information required by the Companies Act,1956, in the manner so
required and gives a true and fair view in conformity with the
accounting principles generally accepted in India :- i) In the case of
the Balance Sheet, of the state of affairs of the Company as at March
31st, 2012;
ii) In the case of the statement of Profit and Loss, of the profit of
the company for the year ended on March 31st, 2012; and iii) In the
case of Cash Flow Statement, of the cash flows for the year ended on
March 31st, 2012.
annexure to the auditor's report (Referred to in paragraph (1) of our
report of even date)
1) (a) The Company is maintaining proper record to show full
particulars including, quantitative details and situation of all fixed
assets.
(b) We are informed that the company has formulated a programme of
physical verification of all the fixed assets during the year which, in
our opinion, is reasonable having regards to the size of the company
and the nature of its assets. Accordingly, the physical verification
of the fixed assets has been carried out by management during the year
and no material discrepancies were noticed on such verification.
(c) The company has not disposed off any substantial part of its fixed
assets so as to affect its going concern status.
2) (a) As explained to us, inventories i.e. WIP of construction
activity 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
the book records were not material.
3) (a) According to the information and explanation given to us, the
company has not granted any loans, secured or unsecured, to companies,
firms and other parties covered in the register maintained under
Section 301 of Companies Act, 1956. Accordingly, paragraph 4(iii) (b),
(c) and (d) of the order are not applicable.
(b) According to the information and explanation given to us, the
company has not taken any loans, secured or unsecured, to companies,
firms and other parties covered in the register maintained under
Section 301 of Companies Act, 1956. Accordingly, paragraph 4(iii) (f)
and (g) of the order are not applicable.
4) (a) In our opinion and according to the information and explanation
given to us, there are adequate internal control systems commensurate
with the size of the company and the nature of its business for the
purchase of inventory, fixed assets and sales. Further, on the basis of
our examination of the books and record of the company, and according
to the information and explanation 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.
5) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of the contracts or
arrangements that need to be entered in the register maintained under
section 301 of the Companies Act, 1956 have been entered.
(b) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of the such contracts
or arrangements entered in the register maintained under Section 301 of
the Companies Act, 1956 and exceeding the value of rupees five lakhs in
respect of any party during the year have been made at price which are
reasonable having regards to prevailing market prices at the relevant
time.
6) The Company has not accepted any deposits from the public as
stipulated under the provisions of Section 58A and 58AA of the
Companies, 1956 and rules framed there under.
7) In our opinion, the company has internal audit system commensurate
with its size and nature of its business.
8) We have broadly reviewed the books of account and record maintained
by the Company pursuant to the rules prescribed by the Central
Government for the maintenance of the cost records under section
209(1)(d) of the Companies Act, 1956 and are of the opinion that prima
facie the prescribed accounts and records have been made and
maintained. The contents of these accounts and records have not been
examined by us.
9) (a) According to the information and explanations given to us and
the records of the company examined by us, the company is generally
regular in depositing with appropriate authorities undisputed statutory
dues including Provident Fund, employee's state insurance, income tax,
service tax, sales tax, tax deducted at source, cess and other material
statutory dues applicable to it.
(b) According to the information and explanations given to us and the
records of the company examined by us, there were no disputed amounts
payable in respect of income tax, service tax, sales tax and other
statutory dues which were arrears, as at March 31st, 2012 for a period
of more than six months from the date they becomes payable.
(c) According to the information and explanations given to us and the
record of the company examined by us, there were no statutory dues
which have not been deposited on account of any dispute pending.
10) The company has no accumulated losses as at March 31st. 2012 and it
has not incurred cash losses in the financial year ended on that date
or in the immediately preceding financial year.
11) According to the records of the company examined by us and
information and explanations given to us, the company has not defaulted
in repayment of dues to any financial institutions or bank as at the
balance sheet date.
12) According to 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.
13) In our opinion and according to the information and explanations
given to us, the nature of activities of the Company does not attract
any special statute applicable to chit fund and nidhi / mutual benefit
fund / societies.
14) The Company does not dealww or trade in shares, securities,
debentures and other investments.
15) According to the information and explanations given to us, the
company has not given any guarantee for loans taken by others from bank
or financial institutions.
16) According to the information and explanations given to us and the
records of the company examined by us, the company has applied the term
loans on the overall basis for the purpose for which they were raised.
17) According to the information and explanations given to us and on
overall examination of balance sheet of the company, we report that no
funds raised on short term basis have been used for long term
investment and vice versa.
18) During the financial year, the company has not made any
preferential allotment of shares to the parties and companies covered
in register maintained under Section 301 of the Companies Act,1956.
19) The company has not issued debentures during the year.
20) The company has raised money through a public issue during the
year. We have verified that the end use of money raised by public issue
is as disclosed in the notes to the financial statements.
21) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
information and explanations given by the management, we have neither
come across any instances of fraud on or by the company, noticed or
reported during the year, nor have we been informed of such case by the
management.
For M/s G. P. Pimpalikar and Associates
Chartered Accountants
(FRN: 119343W)
G. P. Pimpalikar
Place: Nashik Proprietor
Date : 28/08/2012 Membership No: 107120
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