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Updated:24 Jun, 2019, 15:59 PM IST

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Updated:24 Jun, 2019, 16:01 PM IST

Disclosure in auditor’s report explanatory

Purushottam Agrawal & Co.                                                           S.S. Kothari Mehta & Co.

Chartered Accountants                                                                   Chartered Accountants      

INDEPENDENT AUDITOR?S REPORT

To the Members of PNC Infratech Limited

Report on the Financial Statements

We have audited the accompanying financial statements of PNC Infratech Limited, which comprise the Balance Sheet as at 31st March 2013, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and Notes to Financial Statements comprising of 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 controls relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatements, whether due to fraud or error.

Auditor?s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We 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 the material misstatement of the financial statements, whether due to error of fraud. 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 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 31st March 2013;

b)      In the case of the Statement of Profit and Loss, of the profit for the year ended on that date; and

c)       In the case of the Cash Flow Statement, of the cash inflows 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 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 sub–section (3C) of section 211 of the Companies Act, 1956;

e)      On  the basis of written representations received from the directors as on 31st March 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March 2013, from being appointed as a director in terms of clause (g) of sub–section (1) of section 274 of the Companies Act, 1956;

      

For Purushottam Agrawal & Co.                                                             S.S. Kothari Mehta & Co.

Chartered Accountants                                                                          Chartered Accountants 

Firm Reg. no. 000731C                                                                          Firm Reg. no. 000756N             

                       

(Sanjay Agarwal)                                                                                   Neeraj Bansal

Partner                                                                                                  Partner

M.No. 72696                                                                                         Membership No. : 95960           

Place : Agra

Dated : June 25, 2013   

Disclosure in auditors report relating to fixed assets

The Company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets on the basis of information available .

Disclosure relating to quantitative details of fixed assets

The Company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets on the basis of information available .

Disclosure relating to physical verification and material discrepancies of fixed assets

the fixed assets are physically verified by the management in a phased manner over a period of three years, which in our opinion is reasonable having regard to the size of the Company and the nature of its assets. According to information and explanation given to us, the discrepancies noticed on physical verifications were not material and have been properly dealt within the books of account.

Disclosure relating to fixed assets disposed off

Based on records of the Company and according to the information and explanations given to us, no substantial part of fixed assets affecting the going concern, have been disposed off during the year.

Disclosure in auditors report relating to inventories

the management has physically verified the inventory during the year to a reasonable extent except material in transit which has been subsequently verified. Further we are explained that there are no items, either in control of management or lying with third party, for which physical verification was not done.

Disclosure of physical verification of inventories at fixed intervals

the management has physically verified the inventory during the year to a reasonable extent except material in transit which has been subsequently verified. Further we are explained that there are no items, either in control of management or lying with third party, for which physical verification was not done.

Disclosure in auditors report relating to nature and amount of fund raised for short–term has been used for long–term or vice versa

In our opinion, and according to the information and explanations given to us and on an overall examination of the balance sheet of the Company, we report that funds raised on short term basis have not been prima facie used for long term investment.

Disclosure in auditors report relating to preferential allotment of shares

According to the information and explanation given to us, the Company has not made preferential allotment of shares to any of the parties covered in the register maintained under Section 301 of the Act.

Disclosure in auditors report relating to securities created against debentures issued

The Company has not issued any debentures during the year.

Disclosure in auditors report relating to any material fraud reported during period

During the course of our examination of the books and records of the Company carried out in accordance with the generally accepted auditing practices in India, we have neither come across any instance of fraud on or by the Company noticed or reported during the year, nor have we been informed of such case by the management.

Disclosure in auditors report relating to purpose and end use of money raised through public issues

The Company has not raised any money by public issues during the year.

Disclosure in auditors report relating to default in repayment of financial dues

In our opinion and according to the information and explanation given to us, the Company has not defaulted in repayment of its dues to financial institutions and banks.

Disclosure in auditors report relating to loans and advances granted by way of pledge of shares debentures and other securities

In our opinion and according to the information and explanation given to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debenture and other securities.

Disclosure in auditors report relating to provisions under special statute

In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund/society. Therefore, the provisions of clause 4(xiii) of the Order are not applicable to the Company.

Disclosure in auditors report relating to adequacy of records maintained by share trading companies

As per the information and explanations given to us, the Company is not dealing or trading in shares, securities, debentures and other investments. Accordingly, the provision of clause 4 (xiv) of the Order is not applicable to the Company.

Disclosure in auditors report relating to guarantee given

In our opinion, and according to the information and explanations given to us and based on written representation from the Company, has not given any corporate guarantee for loans taken by others, except in one case of Corporate Guarantee (Refer note no. 34(b) annexed to financial statements) given to bank for granting of loan to its associates and terms and condition of such corporate guarantee is not prima facie prejudicial to the interest of the company. The Company has also given general business undertakings for shortfall of funds availed for facilities in subsidiaries and associates for BOT (build, operate and transfer) projects.

Disclosure in auditors report relating to term loans used for purpose other than for purpose they were raised

In our opinion, and according to the information and explanations given to us, the term loans availed by the Company were prima facie applied by the Company during the year for the purpose for which the loan was obtained.

Disclosure in auditors report relating to companies internal audit system

In our opinion, the Company has an internal audit system commensurate with its size and nature of its business. However the recording procedure needs to be strengthened.

Disclosure in auditors report relating to maintenance of cost records

We have broadly reviewed the construction related project’s cost records maintained by the Company pursuant to the Companies (Cost Accounting Records) Rules 2011 prescribed by the Central Government of India under clause (d) of sub–section (1) of Section 209 of the companies Act, 1956 and are of the opinion that the company is further streamlining the prima facie available record. However we have not made the detailed examination of cost record with a view to determine whether they are accurate or complete. The company is in process of obtaining the compliance report for the year under review.

Disclosure in auditors report relating to statutory dues

(a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees’ State Insurance, Income–Tax, Sales Tax/VAT/Work Contract Tax, Service Tax, Customs Duty, Excise Duty, Cess and other material statutory dues, as applicable, with the appropriate authorities except out of total wealth tax payable of ` 7.51 Lacs at the close of year more than six month payable at the year end is ` 5.35 Lacs.

Disclosure relating to regularity in payment of undisputed statutory dues

(a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing undisputed statutory dues including Provident Fund, Investor Education and Protection Fund, Employees’ State Insurance, Income–Tax, Sales Tax/VAT/Work Contract Tax, Service Tax, Customs Duty, Excise Duty, Cess and other material statutory dues, as applicable, with the appropriate authorities except out of total wealth tax payable of ` 7.51 Lacs at the close of year more than six month payable at the year end is ` 5.35 Lacs.

Disclosure relating to disputed statutory dues

(b) According to the information and explanations given to us and the records of the Company examined by us, the particulars of dues of Income–Tax, Sales–Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty and Cess as at March 31, 2013 which have not been deposited on account of disputes, are as follows– Name of the Statute Nature of Dues Period to which the amount relates Forum where the dispute is pending Demand amount (` in lacs) Amount deposited (` In Lacs) MP Entry Tax Act, 1976 Entry Tax 2007–08, 2008–09, 2009–10 Pending with Appellant Tribunal & challenge the constitution validity in Hon'ble Supreme Court of India 164.75 48.84 UP Trade Tax Act, 1948 Entry Tax 2004–05, 2005–06 to 2009–10, Pending with Hon'ble Supreme Court of India 87.35 69.10* Entry Tax 2010–11, 2011–12 Pending with Hon'ble Supreme Court of India 78.04 –– Entry Tax 2012–13 Pending with Hon'ble Supreme Court of India 142.82 –– UP VAT ACT, 2008 Sale Tax 2006–07 Assessing Officer, Commercial Tax Deptt., Agra 38.10 –– VAT 2007–08 TO 2010–11 High Court Allahabad UP 885.00** –– VAT 2006–07,2007–08, 2008–09 Department approach in Tribunal 125.52 13.19 VAT 2007–08 (1.4.2007– 31.12.2007) Department approach in Allahabad High Court. 176.76 –– Karnataka VAT Act, 2003 Sale Tax 2004–05 Commissioner (Appellate) Tribunal, Bangalore 37.00 –– Uttrakhand VAT Act, 2005 VAT 2008–09 Matter is pending in first appeal. 20.07 –– Central Excise & Service Tax Act, 1994 Service Tax 2005–09 Commissioner (Appeal) 0.70 –– Service Tax 2005–06 CESTAT , New Delhi 292.50 –– Service Tax 2003 to 2006 CESTAT , Ludhiana 143.00 –– Income Tax Act’ 1961 Income Tax 2002–03, 2003–04 Hon'ble Allahabad High Court, U P 432.58 144.76 Income Tax 2004–05 Income Tax Appellant Tribunal, Agra 85.18 –– Labour Welfare Act, 1953 Labour Cess 2010 MP High Court 268.00 2.69 *includes Bank guarantee of ` 34 Lacs. **amount calculated on estimated basis.

Disclosure in auditors report relating to accumulated losses

The Company does not have accumulated losses as at 31st March, 2013 The Company has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year.

Disclosure regarding terms of recovery of loans granted or taken

According to information and explanations given to us, the prima facie non prejudiciability of company in case of non charging of interest, for other terms and condition and for recovery of principal and interest cannot be adjudged, as the company is in the process of updating the relevant documents.

Disclosure in auditors report relating to internal control system

According to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchase of inventory and fixed assets and with regard to sale of goods and rendering of construction related services. In case of certain specialized specified construction related material items purchased and service rendered, we are explained that they are of special nature and suitable alternative sources did not exist for obtaining comparable quotations during the course of our audit, and examination of the books and records of the Company and according to the information and explanations given to us, we have neither come across nor have been informed of any continuing failure to correct major weaknesses in the aforesaid internal control system.

Disclosure in auditors report relating to contracts and arrangements under section 301 of companies act

In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lacs or more in respect of each party, during the year, have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time except in case of specified specialized services as mentioned in point (4) above and matter given in 3(b&c) above.

Disclosure relating to presence of register for necessary transactions

According to the information and explanations given to us, we are of the opinion that the particulars of all contracts or arrangements that need to be entered into the register maintained under section 301 of the Companies Act,1956 have been so entered.

Disclosure relating to reasonability of transactions

In our opinion and according to the information and explanations given to us, the transactions made in pursuance of such contracts or arrangements entered in the register maintained under section 301 of the Companies Act, 1956 and exceeding the value of rupees five lacs or more in respect of each party, during the year, have been made at prices which are reasonable having regard to the prevailing market prices at the relevant time except in case of specified specialized services as mentioned in point (4) above and matter given in 3(b&c) above.

Disclosure in auditors report relating to deposits accepted from public

The Company has not accepted deposits from the public, so the direction issued by Reserve Bank of India and the provision of Section 58A,58AA or any other relevant provision of the Companies Act 1956 and rules framed there under are not applicable.

Disclosure of procedure followed for physical verification of inventories

the procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size and nature of the business of the Company.

Disclosure about maintenance of inventory records and material discrepancies

the Company is maintaining proper records of inventory. During the year, the physical verification was conducted at various sites and no material discrepancies have been found and for other discrepancies considered reasonable have been adjusted in books of account. However we feel the process of recording of physical verification needs to be strengthened.

Disclosure in auditors report relating to loans

The Company has not granted loans to companies covered in the register maintained under Section 301 of the Companies Act 1956 except in the case of two companies where maximum Balance is ` 3,021 Lacs during the year amount outstanding is ` 1,735 Lacs.

Disclosure about loans granted or taken by parties covered under section 301 of companies act

The Company has not granted loans to companies covered in the register maintained under Section 301 of the Companies Act 1956 except in the case of two companies where maximum Balance is ` 3,021 Lacs during the year amount outstanding is ` 1,735 Lacs.

Disclosure regarding terms and conditions of loans granted or taken

According to information and explanations given to us, the prima facie non prejudiciability of company in case of non charging of interest, for other terms and condition and for recovery of principal and interest cannot be adjudged, as the company is in the process of updating the relevant documents.

Disclosure regarding terms of payment of loans granted or taken

According to information and explanations given to us, the prima facie non prejudiciability of company in case of non charging of interest, for other terms and condition and for recovery of principal and interest cannot be adjudged, as the company is in the process of updating the relevant documents.

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