Brahmaputra Infraproject Ltd Merged Auditor Reports

BRAHMAPUTRA INFRAPROJECT LIMITED ANNUAL REPORT 2011-2012 AUDITORS REPORT To The Members, BRAHMAPUTRA INFRAPROJECT LIMITED. 1. We have audited the attached Balance Sheet of BRAHMAPUTRA INFRAPROJECT LIMITED as at 31st March, 2012 and also the Statement of Profit & Loss and Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit. 2. We conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on test basis evidence supporting the amounts and disclosures in the financial statement. An audit also includes assessing the accounting principles used and significant estimates made by the management as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. As required by the companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of Section 227(4A) of the Companies Act, 1956 and on the basis of such checks as we considered appropriate we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said order. 4. Further to our comments in the Annexure referred to in paragraph 3 above, we report that: a) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit; b) In our opinion, proper books of account, as required by law, have been kept by the Company, so far as appears from our examination of those books; c) The Financial Statements dealt with by this report are in agreement with the books of accounts; d) In our opinion and to the best of our information and explanation given to us, the financial statements dealt with by this report comply with the applicable Accounting Standards referred to in section 211(3C) of the Companies Act, 1956 to the extent applicable; e) On the basis of written representations received from the Directors and taken on record by the Board of Directors, we report that none of the Directors are disqualified as on 31st March, 2012 from being appointed as a Director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956; f) In our opinion and to the best of our information and according to the explanation given to us, the said accounts read together with the Significant Accounting Policies and Other Disclosures give the information required by the Companies Act, 1956 in the manner so required and present a true and fair view in conformity with the accounting principle generally accepted in India in the case of: (a) The Balance Sheet, of the state of affairs of the company as at 31st March, 2012, (b) The Statement of Profit and Loss, of the profit of the company for the year ended on that date and; (c) The Cash Flow statement, of the cash flows for the year ended on that date. For A.B. Bansal and Company Chartered Accountants A.B. Bansal Place: New Delhi Partner Dated: 03.09.2012 M.No. 84628 ANNEXURE TO THE AUDITORS REPORT: (Referred to in Paragraph 3 of our Report of even date): Based on the audit procedures performed for the purpose of reporting a true and fair view on the Financial Statements of the Company and taking into consideration the information and explanation given to us and the books of account and other records examined by us in the normal course of audit, we report that; 1. (a) The Company has maintained proper records of fixed assets showing full particulars including quantitative details and situation of fixed assets. However due to frequent movement of fixed assets-movable construction equipments from site to site, actual location of such assets has not been mentioned in the records. A significant portion of the fixed assets have been physically verified by the management during the year which in our opinion is reasonable having regard to the size of the Company and nature of its business. No material discrepancies were noticed on such physical verification. (b) There was no substantial disposal of fixed asset during the year under audit. 2. As per information and explanations given to us, the inventories of Raw Material and construction materials at companys sites which includes work in progress, have been physically verified by the management at reasonable intervals during the year. In our opinion and according to the information and explanations given to us, the procedure of physical verification of inventories followed by the management is reasonable and adequate in relation to size of the Company and the nature of its business. The Company is mainly engaged in business of construction. In view of multifarious jobs at different sites spread at different locations and practical difficulties, records of inventory have been maintained in ERP System and consumption booked on Quarterly basis. 3. (a) According to the information & explanation given to us, the company has not granted unsecured loans to any parties covered in the registered maintained u/s. 301 of the Companies Act, 1956. (b) According to the information and explanation given to us, the company has taken unsecured loans from two companies covered in the register maintained u/s.301 of the Companies Act, 1956. The maximum amount outstanding during the year was Rs.218 Lacs (Previous Year Rs. 271.50 Lacs) and year end balance was Rs. Nil (Previous Year-Nil). (c) We are of the opinion that the rate of interest and other terms and conditions on which loans, have been taken by the company are not prejudicial to the interest of the company. (d) The Company is regular in repayment of principal amount & interest wherever applicable. 4. In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business for the purchase of inventory and fixed assets and for the Contract receipt and services. During the course of our audit, we have not observed any major weakness in internal controls. 5. (a) Based on our audit procedure applied by us and according to the information and explanations provided by the management, we are of the opinion that the particulars of contract and/or arrangements referred to in section 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 in pursuance of contracts or arrangement entered in the register maintained under Section 301 of the Companies Act, 1956 and exceeding the value of rupees five lacs in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time. 6. As per the information and explanations given to us, the company has not accepted any deposits from the public. 7. In our opinion the internal audit system of the Company is commensurate with the size and the nature of its business. 8. The maintenance of cost records has been prescribed by the Central Govt, under section 209(1)(d) of the Companies Act, 1956 vide Companies (Cost Accounting Records) Rules, 2011 and we are of the opinion that prima facie the prescribed records have been made and maintained. 9. (a) The company, is generally regular in depositing undisputed statutory dues including Provident fund, Investor Education Protection fund, Employees State Insurance, Income tax, Sales-tax, Wealth-Tax, Customs Duty, Excise Duty, Cess, Entry Tax, Service Tax and other statutory dues with the appropriate authorities. (b) According to the information and explanation given to us no undisputed amounts payable in respect of the aforesaid dues were outstanding as on 31st March, 2012 for a period of more than six months from the date it become payable, except in respect of the following: Name of Dues Amount Outstanding for More Than 6 Months 1. Income Tax 35,48,664/- 2. Service Tax 7,52,209/- (c) According to the information and explanation given to us there are no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Custom Duty and Excise Duty which have not been deposited on account of any dispute. 10. The Company has no accumulated losses for the year ended 31st March, 2012 and it has not incurred any cash losses during the said period covered by our audit or in the immediately preceding financial year. 11. As per books and records maintained by the Company and according to the information and explanation given to us, the Company has not defaulted in repayment of dues to financial institutions or Banks. 12. In our opinion and according to the information and explanation given to us, no Loans and Advances have been granted by the Company on the basis of security by way of shares, debentures and other securities. 13. In our opinion, the Company is not a chit fund or a nidhi/mutual benefit fund/society. Therefore, Clause 4(xiii) of the Companies (Auditors Report) Order, 2003 is not applicable to the company. 14. The Company is not dealing or Trading in Shares, Debentures and other investment. However the company is holding investment in shares of associate company and further the company is holding all the investments in its own name. 15. According to the information and explanations given to us, the Company has not given bank guarantees for and on behalf of others. 16. The Company has raised term loans during the year and the same were applied for the purpose for which the loans were obtained. 17. According to the information and explanation given to us and on an overall examination of the Balance Sheet of the Company we report that no funds raised on short term basis have been used for long term investment. 18. During the year covered under our audit, Company has not made any preferential Allotment of shares to the parties and companies covered in the Register maintained under section 301 of the Companies Act, 1956. 19. The Company has not issued any debentures during the year. 20. The Company has not raised any money by way of public issue during the year. 21. In our opinion and according to the information and explanations given to us by the management which have been relied upon by us, no fraud on or by the Company has been noticed or reported during the year. For A.B. Bansal and Company Chartered Accountants A.B. Bansal Place: New Delhi Partner Dated: 03.09.2012 M.No. 84628