Auditor Report of Kanoria Energy & Infrastructure Ltd.
Mar 31, 2023
KANORIA ENERGY & INFRASTRUCTURE LIMITED (Formerly Known as A Infrastructure Limited)
Report on the Audit of the Ind AS Financial Statements
Opinion
We have audited the Ind AS financial statements of Kanoria Energy & Infrastructure Limited (Formerly Known as A Infrastructure Limited) (âthe Companyâ), which comprise the balance sheet as at March 31,2023, the statement of profit and loss (including other comprehensive income), statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of the significant accounting policies and other explanatory information (herein referred to as â financial statementsâ).
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Companies Act, 2013 (âActâ) in the manner so required and give a true and fair view in conformity with the Indian Accounting standards specified under section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015 as amended (the Ind AS) and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,2023, the profit, total comprehensive income, changes in equity and its cash flows for the year ended on that date.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those standards(SAs) are further described in the Auditor''s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India(ICAI) together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the (ICAI''s)Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
We have determined the matter described below to be the key audit matter to be communicated in our report.
Description of Key Audit Matter
Revenue recognition (refer note No. 1 (10) to the Financial Statements)
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The Key Audit Matter |
How the matter was addressed in our audit |
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Revenue Recognition Revenue is recognized when the control of the underlying products has been transferred to the customer. There is a risk of revenue being overstated due to fraud resulting from the pressure on management to achieve performance targets at the reporting period end. Revenue is measured net of discounts, rebates and incentives earned by customers on the Company''s sales. |
Our audit procedures included: a) Assessed the appropriateness of the company''s revenue recognition accounting policies, including those relating to discounts, incentives and rebates by comparing with the applicable accounting standards; b) Tested the operating effectiveness of the general IT control environment and key IT application controls over recognition of revenue, calculation of discounts, incentives and rebates; |
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Due to the Company''s presence across different marketing regions within the country and the competitive business environment, the estimation of the various types of discounts, rebates and incentives to be recognized based on sales made during the year is material and considered to be judgmental. Therefore, there is a risk of revenue being misstated as a result of faulty estimations over discounts, incentives and rebates and therefore considered as a key audit matter. |
c) Performed test of details: i) Agreed samples of sales, discounts, incentives and rebates to supporting documentation and approvals; ii) Obtained supporting documents for sales transactions recorded either side of year end as well as credit notes issued after the year ended to determine whether revenue was recognized in the correct period. d) Comparing the historical discounts, rebates and incentives to current payment trends. We also considered the historical accuracy of the Company''s estimates in previous years. e) Assessing manual journals posted to revenue to identify unusual items. and f) Considered the appropriateness of the company''s description of the accounting policy, disclosures related to revenue, discounts, incentive and rebates and whether these are adequately presented in the financial statement. |
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Related Party Disclosures (Ind AS 24) The company has entered into several transactions with related parties during the year 2022-23.We identified related party transactions as a key audit matter because of risks with respect to completeness of disclosures made in the financial statements; noncompliance with statutory regulations governing related party relationships such as the Companies Act, 2013 and SEBI Regulations and the judgement involving assessing whether transactions with related parties are undertaken at arms'' length. |
a) In view of the significance of the matter we applied the following audit procedures in this area among others to obtain sufficient appropriate audit evidence: b) We carried out an assessment of the key controls to identify and disclose related party relationships and transactions in accordance with the relevant accounting standard. c) We carried out an assessment of compliance with the listing regulations and the regulations under the Companies Act, 2013, including checking of approvals/scrutiny as specified in Sections 177 and 188 of the Companies Act, 2013 with respect to the related party transactions. d) We considered the adequacy and appropriateness of the disclosures in the financial statements, relating to the related party transactions. e) For transactions with related parties, we inspected relevant ledgers, agreements and other information that may indicate the existence of related party relationships or transactions. We also tested completeness of related parties with reference to the various registers maintained by the Company statutorily. f) We have tested on a sample basis, Management''s assessment of related party transactions for arm''s length pricing. |
Information Other than the Financial Statements and Auditorsâ Report Thereon
The Company''s management and Board of Directors are responsible for the other information. The other information comprises the information included in the Company''s annual report, but does not include the financial statements and our auditors'' report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Managementâs Responsibility for the Financial Statements
The Company''s management and Board of Directors are responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these financial statements that give a true and fair view of the state of affairs, profit and other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management and Board of Directors are responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors is also responsible for overseeing the Company''s financial reporting process.
Auditorâs Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
i. Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
ii. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls.
iii. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
iv. Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
v. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Materiality, in the context of any entity''s financial statement taken as a whole, is the nature or magnitude of financial information, or both that individually or in the combination with other information is reasonably be expected to influence the economic decisions of a reasonably knowledgeable primary user of general purpose financial statements. In planning the scope of our audit work, evaluating the results of our work and evaluating the financial effect of any identified omissions, misstatements or obscuration in the financial statements we consider quantitative materiality and also the qualitative factors.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors'' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors'' Report) Order, 2020 (âthe Orderâ) issued by the Central Government in terms of Section 143 (11) of the Act, we give in the âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
(A) As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The balance sheet, the statement of profit and loss (including other comprehensive income), the statement of changes in equity and the statement of cash flows dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid financial statements comply with the Ind AS specified under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on March 31, 2023 taken on record by the Board of Directors, none of the directors is disqualified as on March 31,2023 from being appointed as a director in terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls with reference to financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure Bâ.
g) With respect to the matter to be included in the Auditors'' Report under Section 197(16) of the Act:
In our opinion and according to the information and explanations given to us, the remuneration paid by the Company to its directors during the current year is in accordance with the provisions of Section 197 of the Act. The remuneration paid to any director is not in excess of the limit laid down under Section 197 of the Act.
h) With respect to the other matters to be included in the Auditors'' Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations as at March 31, 2023 on its financial position in its financial statements - Refer Note 48(i) to the financial statements;
ii. The Company did not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. a. The management has represented that, to the best of its knowledge and belief, other than disclosed
in the notes to accounts, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the company to or in any other person(s) or entity (ies), including foreign entities (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
b. The management has represented that, to the best of its knowledge and belief, other than as disclosed in the notes to accounts, no funds have been received by the company from any person(s) or entity(s), including foreign entities (âFunding Partiesâ) with the understanding, whether recorded in writing or otherwise, that the company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âultimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
c. Based on audit procedures that we have considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under iv. (a) and (b) above contain any material mis-statement.
v. The Company has declared and paid dividend during the year and has complied with Section 123 of the Companies Act, 2013.
vi. In terms of the Companies (Accounts) Second Amendment Rules, 2022 amending further the proviso to sub- rule (I) of Rule 3 of the Companies (Accounts) Rules, 2014 vide notification no. G.S.R 235(E) dated 31 st March, 2022 issued by Ministry of Corporate Affairs, the uses of accounting software having a feature of recording audit trail for maintaining books of account and creating an edit log of each change made in books of account has been made applicable for the Company with effect from April 1, 2023. Therefore, we have not reported the matter specified in Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.
For K. N. Gutgutia & Co.
Chartered Accountants Firm Registration Number 304153E
Sd/-
K. C. SHARMA
Place - New Delhi Partner
Date - May 30, 2023 Membership No.50819
UDIN: 23050819BGUSKN8894
Mar 31, 2018
Report on the Ind AS Financial Statements
We have audited the accompanying Ind AS financial statements of A Infrastructure Limited (âthe Companyâ), which comprise the Balance Sheet as at 31 March, 2018, the Statement of Profit and Loss, (including other comprehensive income) the Cash Flow Statement and the statement of changes in equity for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Managementâs Responsibility for the Ind AS Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these Ind AS financial statements that give a true financial position, financial performance and fair view of the cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian (Ind AS) Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the Ind As financial statements. The procedures selected depend on the auditorâs 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 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 the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the 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 financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, including the Ind AS of the financial position of the company as at 31st March, 2018, and its financial performance including other comprehensive income, its cash flow and the changes in equity for the year ended on that date.
Other Matters
The comparative financial information of the Company for the year ended 31st March, 2017 included in these Ind AS financial statements, is based on the financial statement for the year ended 31st March, 2017 which were audited by the predecessor auditor who had expressed an unmodified opinion. Our opinion on the financial statements and our report on Other Legal and Regulatory Requirements below is not modified in respect of this matter.
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 Subsection (11) of Section 143 of the Act, we give in the Annexure- A a statement on the matters specified in paragraphs 3 and 4 in the order.
2. As required by Section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss, the cash flow statement and the statement of the changes in equity, dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with relevant rules issued thereunder.
e) On the basis of the written representations received from the directors as on 31 March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2018 from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the Internal Financial Controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in âAnnexure-Bâ. and
g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements
- Refer note 45(i)(a) of the Ind AS financial statements.
ii. The Company did not have any long-term contracts including derivatives contracts for which there were any material foreseeable losses.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
ANNEXURE âAâ TO THE INDEPENDENT AUDITORâS REPORT
(Referred to in paragraph I of Report on other legal and Regulatory Requirementsâ section of our report of even date)
I. a) The company has maintained proper records showing full particulars, including quantitative details and situations of Property, Plant and Equipments.
b) The Property, Plant and Equipments were physically verified during the year by the management in accordance with a regular program of verification which, in our opinion, provides for physical verification of all Property, Plant and Equipments at reasonable intervals. According to the information and explanation given to us, no material discrepancies were noticed on such verification.
c) According to the information and explanations given to us and the record examined by us and based on the examination of the registered sale deed/transfer deed/conveyance deed provided to us, we report that, the title deeds, comprising all the immovable properties of buildings which are freehold, are held in the name of the company as at the balance sheet date.
II. As explained to us, inventories were physically verified during the year by the management at reasonable intervals, except for inventories lying with third parties where confirmations of inventories held by such third parties have been received and no material discrepancies were noticed on physical verification.
III. a) The Company has granted unsecured loans to companies, firms, Limited Liability Partnerships or other parties covered in the register maintained under Section 189 of the companies Act 2013, which is not prejudicial to the interest of the company.
b) The schedule of repayment of principal and interest of the above loan has been stipulated and the company is regular in receipt of the same.
c) There is no amount overdue of more than 90 days in respect of recovery of principal and interest of the above loan.
IV. In our opinion and according to the information and explanation given to us, the company has complied with the provisions of section 185 and 186 of the Companies act 2013 in respect of making loans, investments and guarantees as applicable.
V. The company has not accepted any deposit from public under Section 73 to 76 and any other relevant provisions of the Companies Act, 2013 during the year. Therefore, the provisions of clause (v) of the Companies Auditor Report) Order 2016 is not applicable.
VI. According to the information and explanations given to us, in our opinion the company has , prima facie, made and maintained the prescribed cost records pursuant to the companies (Cost Records and Audit) Rules, 2015 as amended and prescribed by the central government under section (1) of section 148 of the Companies Act 2013. We have however not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
VII. According to the information and explanation given to us in respect of statutory dues:
a) The company has generally been regular in depositing undisputed statutory dues including provident fund, employees state insurance, income tax, sales tax, service tax, customs duty, excise duty, value added tax, Goods and Service tax, Cess and any other material statutory dues applicable to it with the appropriate authorities.
b) There were no undisputed amount payable in respect of provident fund, employees state insurance, income tax, sales tax, service tax, customs duty, excise duty, value added tax, Goods and Service tax, Cess and any other material statutory dues in arrears, as at 31st March 2018 for a period of more than six months from the date they became payable.
c) Details of dues of income tax, sales tax, service tax, customs duty, and excise duty which have not been deposited as on 31st March 2018 on account of disputes. (Refer Annexure -C)
VIII. In our opinion and according to the information and explanations given to us, the company has not defaulted in the repayment of loans or borrowings to financial institutions, banks and government. The company has not issued any debentures.
IX. In our opinion and according to the information and explanations given to us, the term loans have been applied by the company for the purposes for which they were raised. The company has not raised monies by way of initial public offer or further public offer (including debt instruments).
X. Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given by the management, we report that no fraud by the company and fraud on the company by its officers or employees has been noticed or reported during the course of audit.
XI. The managerial remuneration has been paid or provided by the company in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V to the companies Act 2013.
XII. The company is not a Nidhi company and hence reporting under clause (xii) of the Companies (Auditors Report) Order, 2016 is not applicable.
XIII. In our opinion and according to the information and explanations given to us, the company is in compliance with section 177 and 188 of the Companies Act 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements etc, as required by the applicable accounting standards.
XIV. During the year, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of the Companies (Auditors Report) Order, 2016 is not applicable to the company.
XV. During the year, the company has not entered into any non cash transactions with its directors or persons connected with him and so clause (xv) of the Companies (Auditors Report) Order, 2016 is not applicable.
XVI. The company is not a non-banking financial company and hence the company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
âANNEXURE Bâ ANNEXURE TO THE INDEPENDENT AUDITORâS REPORT OF EVEN DATE ON THE IND AS FINANCIAL STATEMENTS OF A INFRASTRUCTURE LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the Internal Financial Controls over financial reporting of A Infrastructure Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
The Companyâs management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditorsâ Responsibility
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, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditorâs judgement, including the assessment of the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of Ind AS financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of Ind AS 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 Ind AS financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
FOR K. N. GUTGUTIA & CO.
Chartered Accountants
Firm Registration Number 304153E
Sd/-
K. C. SHARMA
Date : 29th May, 2018 Partner
Place : New Delhi Membership No.50819
Mar 31, 2016
INDEPENDENT AUDITOR''S REPORT
TO THE MEMBERS OF A Infrastructure Limited Report on the Financial Statements
We have audited the accompanying financial statements of A Infrastructure Limited ("the Company"), which comprise the Balance Sheet as at 31stMarch, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under and the Order under section 143(11) of the Act.
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 of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31stMarch, 2016, and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by Section 143 (3) of the Act, we report that:
a. We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.
b. In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our examination of those books.
c. The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this report are in agreement with the books of account.
d. In our opinion, the aforesaid financial statements comply with the accounting standards referred to in section 133 of the Companies Act, 2013, read with rule 7 of the Companies (Accounts) Rules, 2014.
e. On the basis of written representation received from the directors as on 31stMarch, 2016, and taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016, from being appointed as a director in terms of sub section (2) of section 164 of the Companies Act, 2013.
f. With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in ''Annexure A''. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
g. With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to best of our information and according to the explanation given to us:
i The company has disclosed the impact of pending litigation as at 31st March, 2016 on its financial position in its financial statement-Refer Note 32 of Financial Statements.
ii The company did not have any long term contracts, including derivative contracts for which there were any material foreseeable losses.
iii There has been no delay in transferring amounts, required to be transferred, to the investor''s education and protection fund by the company.
2. As required by the Companies (Auditor''s Report) Order, 2016, issued by the Central Government of India in terms of sub section (11) of section 143 of the Act, (hereinafter referred to as the "Order"), we give in "Annexure B" a statement on the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.
(Referred to in paragraph 1(f) under ''Report on Other Legal and Regulatory Requirements'' of our report of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (''the Act'')
We have audited the internal financial controls over financial reporting of A Infrastructure Limited (the Company) as of 31 March 2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Management''s Responsibility for Internal Financial Controls
The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.
Auditor''s Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the ''Guidance Note'') issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section-143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, to the best of our information and according to the explanations given to us, 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 2016, 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.
Re: A Infrastructure Limited
(Referred to in paragraph 2 under ''Report on Other Legal and Regulatory Requirements'' section of our report of even date)
(i) In respect of its fixed assets:
a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
b) The fixed assets were physically verified during the year by the Management in accordance with a regular programme of verification which, in our opinion, provides for physical verification of all the fixed assets at reasonable intervals. According to the information and explanations given to us, no material discrepancies were noticed on such verification.
c) According to the information and explanations given to us and the records examined by us and based on the examination of the registered sale deed / transfer deed / conveyance deed provided to us, we report that, the title deeds, comprising all the immovable properties of buildings which are freehold, are held in the name of the Company as at the Balance Sheet date. In respect of immovable properties of land that have been taken on lease and disclosed as fixed asset in the financial statements, the lease agreements are in the name of the Company, where the Company is the lessee in the agreement.
(ii) As explained to us, inventories were physically verified during the year by the management at reasonable intervals, except for inventories lying with third parties where confirmations of inventories held by such third parties have been received and no material discrepancies were noticed on physical verification.
(iii) The Company has granted loans, secured or unsecured, to companies, firms, Limited Liability Partnerships or other parties covered in the Register maintained under Section 189 of the Companies Act, 2013. In our opinion the terms and conditions for the said loan is not prejudicial to the companies interest. Schedule of repayment of principal and payment of interest is stipulated.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Sections 185 and 186 of the Companies Act, 2013 in respect of making investments as applicable.
(v) According to the information and explanations given to us, the Company has not accepted any deposit during the year. Therefore, the provision of clause (v) of the Order is not applicable.
vi) According to the information and explanations given to us, in our opinion, the Company has, prima facie, made and maintained the prescribed cost records pursuant to the Companies (Cost Records and Audit) Rules, 2014, as amended and prescribed by the Central Government under subsection (1) of Section 148 of the Companies Act, 2013. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
(vii) According to the information and explanations given to us in respect of statutory dues:
(a) The Company has generally been regular in depositing undisputed statutory dues including Provident fund, Employees'' State Insurance, Income-tax, Sales tax, Service Tax, Customs duty, Excise duty, Value Added Tax, cess and any other material statutory dues applicable to it with the appropriate authorities.
(b) There were no undisputed amounts payable in respect of Provident fund, Employees'' State Insurance, Income tax, Sales-tax, Service Tax, Customs duty, Excise duty, Value Added Tax, cess and any other material statutory dues in arrears, as at 31 March 2016 for a period of more than six months from the date they became payable.
(c) Details of dues of Income Tax, Sales Tax, Customs Duty and Excise Duty which have not been deposited as on 31 March 2016 on account of disputes. (Refer Annexure C)
(viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in the repayment of loans or borrowings to financial institutions, banks and government. The Company has not issued any debentures.
(ix) In our opinion and according to the information and explanations given to us, the term loans have been applied by the Company for the purposes for which they were raised. The Company has not raised monies by way of initial public offer or further public offer (including debt instruments).
(x) To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no material fraud on the Company by its officers or employees has been noticed or reported during the year.
(xi) In our opinion and according to the information and explanations given to us, the Company has paid managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.
(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of the Order is not applicable.
(xiii In our opinion and according to the information and explanations given to us the Company is in compliance with Section 188 and 177of the Companies Act, 2013, where applicable, for all transactions with the related parties and the details of related party transactions have been disclosed in the financial statements etc. as required by the applicable accounting standards.
(xiv) During the year the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures and hence reporting under clause (xiv) of the Order is not applicable to the Company.
(xv) In our opinion and according to the information and explanations given to us, during the year the Company has not entered into any non-cash transactions with its directors or persons connected with him and hence provisions of section 192 of the Companies Act, 2013 are not applicable.
(xvi) The Company is not required to be registered under section 45-I of the Reserve Bank of India Act, 1934.
For Agiwal & Associates
Chartered Accountants
Firm Registration No. 000181N
Sd/-P.C. Agiwal
Place : New Delhi Partner
Date : 30th May, 2016 Membership No. 080475
Mar 31, 2013
We have audited the accompanying financial statements of A
Infrastructure Ltd. ("the Company"), which comprise the Balance Sheet
as at 31st March , 2013, the Statement of Profit and Loss and the Cash
Flow Statement for the year then ended, and a summary of the
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 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.
Auditors' Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers the internal control relevant to the
Company's preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by the Management, as well as 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 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 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 purposes of our
audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, Statement of Profit and Loss, and the Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss,
and the Cash Flow Statement comply with the Accounting Standards
referred to in sub-section (3C) of section 211 of the Act.
(e) On the basis of the written representations received from the
directors as on 31st March, 2013 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 Act.
(i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) According to the information and explanations given to us, the
Fixed Assets have been physically verified by the Management during the
year and no material discrepancies have been noted.
(c) In our opinion and according to information and explanations given
to us, the Company has not disposed off substantial part of fixed
assets during the year.
(ii) In respect of its inventories:
(a) The inventory has been physically verified by the management at the
end of the year. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of Inventories
followed by the management are found reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) In our opinion and according to information and explanations given
to us, the Company is maintaining proper records of its inventories.
The discrepancies noticed on verification, where physical verification
has taken place, between the physical stocks and book records which are
not material in relation to the Company, have been properly dealt with
in the books of accounts as informed to us.
(iii) In respect of unsecured loans:
(a) During the year, the Company has taken Unsecured Loans from the
Companies, firms or other parties listed in the Register maintained
under section 301 of the Companies Act, 1956 as explained to us.
Maximum amount involved during the year was Rs. 169.54 lakhs from 5
parties. Year-end balance from such parties was Rs. 116.16 lakhs. The
rate of interest and other terms & conditions are not prejudicial to
the interest of the Company.
(b) As explained and informed to us, the Company has given unsecured
loans to Companies, firms or other parties listed in the register
maintained under section 301 of the Companies Act, 1956. Maximum amount
involved during the year was Rs. 1191.72 lakhs to 9 parties. Year-end
balance from such parties was Rs. 345.04 lakhs. The terms and
conditions are not prejudicial to the interest of the Company.
(iv) In our opinion and according to the information and explanations
given to us, the Company has an adequate internal control procedure
commensurate with its size and nature of its business, for the purchase
of inventory, fixed assets and for purchase/sale of goods. During the
course of our audit, we have not observed any major weakness in the
internal control.
(v) In respect of the contracts or arrangement referred to in Section
301 of the Companies Act, 1956:
(a) In our opinion and according to the information and explanations
given to us, the transactions that need to be entered into the register
maintained under section 301 of the Companies Act, 1956 have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made during the year in pursuance of such
contracts and arrangements exceeding value of Rupees five lakhs for
each party, have been made at prices which are prima facie reasonable
having regard to the prevailing market price at the relevant time
except for certain transactions for sale of materials of sub-standard
quality.
(vi) The Company has not accepted any deposits from the public during
the year, which covered under section 58A and 58AA of the Companies
Act, 1956 and the Companies (Acceptance of Deposits) Rule 1975.
(vii) in our opinion, the Company has an internal audit system,
commensurate with the size and nature of its business. The coverage of
Internal Audit should be enlarged.
(viii) The Company has maintained cost records relating to products of
the Company pursuant to the Companies (Cost Accounting Records) Rules,
2011 prescribed by the Central Government under section 209(1) (d) of
the Companies Act, 1956, as certified by their cost auditors and we
have relied upon the same.
(ix) In respect of Statutory dues:
(a) According to the records of the Company, the Company is generally
regular in depositing with appropriate authorities undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income Tax, Service Tax, Sales Tax, Wealth
Tax, Custom Duty, Excise-Duty, Cess and other statutory dues applicable
to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of aforesaid dues were
outstanding, as at 31st March, 2013 for a period of more than six
months from the date they became payable.
(c) According to the information and explanations given to us, there
are statutory dues which have not been deposited on account of any
dispute. (Please refer Annexure II)
(x) The Company does not have accumulated losses at the end of the
financial year and has not incurred cash losses in the current and
immediately preceding financial year. (xi) On the basis of examination
of records and according to the information and explanations given to
us, there has not been any delay in repayment of dues to the banks by
the Company. At the year end, there were no overdoes in repayments to
banks.
(xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of
securities by way of pledge of shares, debentures or other securities.
(xiii) In our opinion the Company is not a Chit/nidhi/mutual benefit
funds/society, therefore the provisions of clause 4(xiii) of the CARO,
2003 are not applicable to the Company.
(xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor's Report) Order,
2003 are not applicable to the Company.
(xv) In our opinion and according to information and explanations given
to us, the Company has given guarantee for loan taken by a corporate
entity from a Bank. According to the information and explanation given
to us, we are of the opinion that terms and conditions thereof are not
prejudicial to the interest of the Company.
(xvi) On the basis of information and explanations provided to us, the
term Loans have been applied for the purposes for which they were
raised.
(xvii) According to the information and explanation 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 generally used for
long-term investment
(xviii) During the year, the Company has not made any preferential
allotment of shares to parties and Companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.
(xix) As the Company has not issued any debentures, paragraph 4(xix) of
the Order is not applicable.
(xx) During the year, since the Company has not raised money by way of
public issue, paragraph 4(xx) of the Order is not applicable.
(xxi) To the best of our knowledge and according to information and
explanations given to us, no fraud on or by the Company has been
noticed or reported during the year.
ANNEXURE-II (Rs, in lacs)
Nature of Dues Amount Period TO WHICH The Authority where the
amount relates dispute is pending
Works
Contract Tax 34.60 2004-05 D.C.(Appeal),
Ahmadabad
RST & CST 937.00 Dec.2003 March 2006 CESTAT, New Delhi
Entry Tax 3.90 2006-07 D.C.(Appeal),
Bhilwara
Entry Tax 2.48 2007-08 D.C.(Appeal),
Bhilwara
Entry Tax 3.15 2008-09 D.C.(Appeal),
Bhilwara
RST & CST 45.79 2007-08 Appeal against Final
Assessment pending in
Rajasthan Tax Board,
Ajmer and Revision against
Provisional Assessment
pending in Rajasthan High
Court, Jodhpur
RST & CST 9.82 2008-09 Appeal against Provisional
Assessment pending in
Rajasthan High Court,
Jodhpur and Revision
against Final Assessment
pending in D.C.(Appeal),
Bhilwara.
RST & CST 64.44 2009-10 Rajasthan High Court,
Jodhpur
Income Tax 12.05 2009-10 CIT (Appeal), Ajmer
RVAT & CST 49.83 2010-10 Rajasthan Tax Board,Ajmer
Total 1163.06
* Net of tax deposted including the paynment which will be made before
filling of the return of income
for AGIWAL & ASSOCIATES
Chartered Accountants
(FRN-000181N)
Place : New Delhi Sd/-
Date: 30-05-2013 (D.C.Maheshwari)
Partner
M. No. 009883
Mar 31, 2012
We have audited the attached Balance Sheet of A Infrastructure Ltd. as
at 31st March, 2012 and also the Statement of Profit and Loss of the
Company for the year ended on that date and Cash Flow Statement of the
Company annexed thereto for the year ended on that date. These
financial statements are the responsibility of the Company Management.
Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with auditing standards generally
accepted in India. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
1. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Department of Company Affaires in terms of section 227 (4A) of
the Companies Act, 1956, we enclose in the annexure a statement on the
matters specified in paragraph 4 & 5 of the said Order, to the extent
applicable to the Company.
2. Further to our comments in the annexure referred to in paragraph
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 Accounts as required by law have
been kept by the Company, so far as appears from our examination of
those books;
c) The Balance Sheet and the Statement of Profit & Loss dealt with by
this report are in agreement with the Books of Accounts;
d) In our opinion, the Balance sheet and the Statement of Profit & Loss
dealt with by this report comply with the accounting standards refer 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 31s' March, 2012, and taken on record by the board of directors,
we report that none of the directors is disqualified as on 31st March,
2012 from being appointed as a director in terms of clause (g) of
subsection (1) of section of 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 read with Note no. 42 regarding income
accrued from operations of manufacturing unit taken on lease from
Gujarat Composite Limited. shown as operating income as explained in
the above stated note and other notes thereon, the Accounts give the
information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India; ¦
(i) In the case of Balance Sheet, of the state of affairs of the
Company as at 31st March, 2012,
(ii) In the case of Statement of Profit and Loss , of the profit of the
Company for the year ended on that date, and
(Hi) In the case of Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
(i) In respect of its fixed assets:
(a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
(b) According to the information and explanations given to us, the
Fixed Assets have been physically verified by the Management during the
year and no material discrepancies have been noted.
(c) In our opinion and according to information and explanations given
to us, the Company has not disposed off substantial part of fixed
assets during the year.
(ii) In respect of its inventories:
(a) The inventory has been physically verified by the management at the
end of the year. In our opinion, the frequency of verification is
reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of Inventories
followed by the management are found reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) In our opinion and according to information and explanations given
to us, the Company is maintaining proper records of Its inventories.
The discrepancies noticed on verification, where physical verification
has taken place, between the physical stocks and book records which are
not material in relation to the Company, have been properly dealt with
in the books of accounts as informed to us.
(iii) In respect of unsecured loans:
(a) During the year, the Company has taken Unsecured Loans from the
Companies, firms or other parties listed in the Register maintained
under section 301 of the Companies Act, 1956 as explained to us.
Maximum amount involved during the year was Rs. 236.82 lakhs from 5
parties. Yearend balance from such parties was Rs. 113.15 lakhs. The
rate of interest and other terms & conditions are not prejudicial to
the interest of the Company.
(b) As explained and informed to us, the Company has given unsecured
loans to Companies, firms or other parties listed in the register
maintained under section 301 of the Companies Act, 1956. Maximum amount
involved during the year was Rs. 444.80 lakhs to 7 parties. Yearend
balance from such parties was Rs. 93.61 lakhs. The terms and conditions
are not prejudicial to the interest of the Company.
(iv) In our opinion and according to the information and explanations
given to us, the Company has an adequate internal control procedure
commensurate with its size and nature of its business, for the purchase
of inventory, fixed assets and for purchase/sale of goods. During the
course of our audit, we have not observed any major weakness in the
internal control.
(v) In respect of the contracts or arrangement referred to in Section
301 of the Companies Act, 1956:
(a) In our opinion and according to the information and explanations
given to us, the transactions that need to be entered into the register
maintained under section 301 of the Companies Act, 1956 have been so
entered.
(b) In our opinion and according to the information and explanations
given to us, the transactions made during the year in pursuance of such
contracts and arrangements exceeding value of Rupees five lakhs for
each party, have been made at prices which are prima facie reasonable
having regard to the prevailing market price at the relevant time
except for certain transactions for sale of materials of sub-standard
quality.
(vi) The Company has not accepted any deposits from the public during
the year, which covered under section 58A and 58AA of the Companies
Act, 1956 and the Companies (Acceptance of Deposits) Rule 1975.
(vii) In our opinion, the Company has an internal audit system,
commensurate with the size and nature of its business. The coverage of
Internal Audit should be enlarged.
(viii) We have broadly reviewed the cost records maintained by the
Company relating to products of the Company pursuant to the Companies
(Cost Accounting Records) Rules, 2011 prescribed by the Central
Government under section 209(1) (d) of the Companies Act, 1956 and are
of the opinion that prima facie the prescribed cost records have been
maintained. We have however, not made a detailed examination of the
cost records with a view to determine whether they are accurate or
complete,
(ix) In respect of Statutory dues:
(a) According to the records of the Company, the Company is generally
regular in depositing with appropriate authorities undisputed statutory
dues including Provident Fund, Investor Education and Protection Fund,
Employees' State Insurance, Income Tax, Service Tax, Sales Tax, Wealth
Tax, Custom Duty, Excise-Duty, Cess and other statutory dues applicable
to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable" in respect of aforesaid dues were
outstanding, as at 31s1 March, 2012 for a period of more than six
months from the date they became payable.
(c) According to the information and explanations given to us, there
are statutory dues which have not been deposited on account of any
dispute. (Please refer Annexure II)
(x) The Company does not have accumulated losses at the end of the
financial year and has not incurred cash losses in the current and
immediately preceding financial year.
(xi) On the basis of examination of records and according to the
information and explanations given to us, there has not been any delay
in repayment of dues to the banks by the Company. At the year end,
there were no overdoes in repayments to banks.
(xii) According to the information and explanations given to us, the
Company has not granted any loans and advances on the basis of
securities by way of pledge of shares, debentures or other securities.
(xiii) In our opinion the Company is not a Chit/nidhi/mutual benefit
funds/society, therefore the provisions of clause 4(xiii) of the CARO,
2003 are not applicable to the Company.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor's Report) Order,
2003 are not applicable to the company
(xv) In our opinion and according to information and explanations given
to us, the Company has given guarantee for loan taken by a corporate
entity from a Bank. According to the information and explanation given
to us, we are of the opinion that terms and conditions thereof are not
prejudicial to the interest of the Company.
(xvi) On the basis of information and explanations provided to us, the
term Loans have been applied for the purposes for which they were
raised.
(xvii) According to the information and explanation 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 generally used for
long-term investment.
(xviii) During the year the Company has not made any preferential
allotment of shares to parties and Companies covered in the Register
maintained under Section 301 of the Companies Act, 1956.
(xix) As the Company has not issued any debentures, paragraph 4(xix) of
the Order is not applicable.
(xx) During the year, since the Company has not raised money by way of
public issue, paragraph 4(xx) of the Order is not applicable.
(xxi) To the best of our knowledge and according to information and
explanations given to us, no fraud on or by the Company has been
noticed or reported during the year.
ANNEXURE-II (Rs, in lacs)
Nature of Dues Amount Period TO WHICH The Authority where the
amount relates dispute is pending
Works
Contract Tax 34.60 2004-05 D.C.(Appeal),
Ahmadabad
RST & CST 43.64 2005-06 D.C.(Appeal),
Bhilwara
Entry Tax 3.90 2006-07 D.C.(Appeal),
Bhilwara
Entry Tax 2.48 2007-08 D.C.(Appeal),
Bhilwara
Entry Tax 3.15 2008-09 D.C.(Appeal),
Bhilwara
RST & CST 45.79 2007-08 Appeal against Final
Assessment pending in
Rajasthan Tax Board,
Ajmer and Revision against
Provisional Assessment
pending in Rajasthan High
Court, Jodhpur
RST & CST 9.82 2008-09 Appeal against Provisional
Assessment pending in
Rajasthan High Court,
Jodhpur and Revision
against Final Assessment
pending in D.C.(Appeal),
Bhilwara.
RST & CST 64.44 2009-10 Rajasthan High Court,
Jodhpur
Income Tax 12.05 2009-10 CIT (Appeal), Ajmer
Total 219.87
For AGIWAL & ASSOCIATES
(FRN-000181N)
Chartered Accountants
(D.C.Maheshwari)
New Delhi, 20th August, 2012 Partner
M. No. 009883
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