INDEPENDENT AUDITOR
TO THE MEMBERS OF
ITNL ROAD INFRASTRUCTURE DEVELOPMENT COMPANY LIMITED
Report on the Financial Statements
We have audited the accompanying financial statements of ITNL ROAD INFRASTRUCTURE
DEVELOPMENT COMPANY LIMITED ("the Company"), which comprise the Balance
Sheet as at March 31, 2013, and the Statement of Profit and Loss and Cash Flow Statement
for the year then ended, and a summary of significant accounting policies and other
explanatory information.
Managements Responsibility for the Financial Statements
Management is responsible for the preparation of these financial statements that give a
true and fair view of the financial position, financial performance and cash flows of the
Company in accordance with the Accounting Standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant to the preparation
and presentation of the financial statements that give a true and fair view and are free
from material misstatement, whether due to fraud or error.
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
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 auditors
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Companys preparation and fair presentation of
the financial statements in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the explanations
given to us, the financial statements give the information required by the Act in the
manner so required and give a true and fair view in conformity with the accounting
principles generally accepted in India:
(a) in the case of the Balance Sheet, of the state of affairs of the Company as at
March 31, 2013;
(b) in the case of the Statement of Profit and Loss, of the loss for the year ended on
that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the year ended on
that date.
Matter of Emphasis
Without qualifying our opinion, we draw attention to Note No. 29 to the financial
statement. The Company has incurred a net loss of Rs. 243,600,311/- during the year ended
March 31, 2013, has negative net worth of Rs.230,613,660/- and excess of current
liabilities over current assets by Rs.2,068,753,548/- as at March 31, 2013. However, based
on the managements business plan and financial support from the Promoter of Company, in
the opinion of management, no adjustment is required to carrying value of the assets and
liabilities of the company as of balance sheet date and accordingly these financial
statements have been prepared on a going concern basis.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order,2003 ("the Order")
issued by 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 5of
the Order.
2. As required by section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purpose of our audit;
(b) In our opinion proper books of account as required by law have been kept by the
Company so far as appears from our examination of those books;
(c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with
by this report are in agreement with the books of account;
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement comply with the Accounting Standards referred to in subsection (3C) of section
211 of the Companies Act, 1956.
(e) On the basis of written representations received from the directors as on March 31,
2013, and taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2013, from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
|
For Lakhani & Co. |
|
Chartered Accountants |
|
Firm Registration Number 105524W |
|
Parag Modi |
| Place : Mumbai |
Partner |
| Date : April 17,2013 |
Membership Number 114105 |
Annexure to the Auditors Report
(Referred to in of our report of even date to the members of ITNL ROAD INFRASTRUCTURE
DEVELOPMENT COMPANY LIMITED on the financial statements for the year ended 31st March,
2013)
(i) (a) The company has maintained proper records showing full particulars including
quantitative details and situation of fixed assets.
(b) The fixed assets are physically verified during the year by the Management.
(c) The company has not disposed substantial part of its fixed assets during the year.
(ii) The Company has no Inventory. Accordingly sub-clauses (a), (b), and (c) of clause
4(ii) of the Order is not applicable.
(iii) (a) The Company has not granted any loan secured or unsecured to companies, firms
or other parties covered in the register maintained under section 301 of the Companies
Act, 1956. Accordingly sub-clauses (a), (b), (c), and (d) of clause 4(iii) of the Order
are not applicable.
(b) The Company has not taken any loan secured or unsecured from the companies, firms
or other parties covered in the register maintained under section 301 of the Companies
Act, 1956. Accordingly, reporting under this sub-clauses (e), (f) & (g) of clause
4(iii) of the Order is not applicable.
(iv) In our opinion and according to the information and explanations given to us,
there are adequate internal control systems commensurate with the size of the Company and
the nature of its business with regard to purchases of fixed assets and sale of services.
The activities of the Company do not involve purchase of inventory and the sale of goods.
Further, on the basis of our examination of the books and records of the Company, and
according to the information and explanations given to us, we have neither come across nor
have been informed of any instance of major weaknesses in the aforesaid internal control
system.
(v) According to the information and explanations given to us, there were no contracts
or arrangements that were required to be entered into the register maintained under
section 301 of the Companies Act, 1956. Accordingly sub-clauses (a) and (b) of clause 4(v)
of the Order are not applicable.
(vi) The Company has not accepted any deposits from public within the meaning of the
Sections 58A and 58AA or any other relevant provisions of the Act, and the rules framed
there under. Accordingly clause 4(vi) of the Order is not applicable.
(vii) In our opinion, the Company has an internal audit system commensurate with its
size and nature of its business.
(viii) According to the information and explanations given to us, the Central
Government has prescribed the maintenance of cost records under clause (d) of sub-section
(1) of section 209 of the Companies Act, 1956 and on the basis of the certificate of the
cost accountant certifying the maintenance .of cost records, we are of the opinion that
the company has made and maintained the same. However, we are not required to make a
detailed examination of the same.
(ix) (a) According to the information and explanations given to us and the records of
the Company examined by us, in our opinion, the Company is generally regular in depositing
the undisputed statutory dues including provident fund, investor education and protection
fund, employees state insurance, income tax, sales tax, wealth tax, custom duty, excise
duty, cess and other material statutory dues as applicable, with the appropriate
authorities.
(b) According to the information and explanations given to us and the records of the
Company examined by us, there are no undisputed dues payable in respect of provident fund,
investor education and protection fund, employees state insurance, income tax, sales tax,
wealth tax, service tax, customs duty, excise duty and cess and other statutory dues as
applicable, were in arrears, 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 no dues in
respect of wealth tax, service tax, sales tax, customs duty, excise duty and cess, which
have not been deposited on account of any dispute.
(x) The Company has the accumulated losses at the end of the year and it exceeds 50% of
the net worth of the Company. The Company has incurred cash losses in current &
preceeding financial year
(xi) Based on our audit procedures and on the information and explanations given by the
management, we are of the opinion that the Company has generally not defaulted in
repayment of dues to Banks. The Company has not borrowed from any financial institution.
(xii) Based on our examination and according to the information and explanation given
to us, the Company has not granted any loans and advances on the basis of security by way
of pledge of shares, debentures and other securities. Accordingly clause 4(xii) of the
Order is not applicable.
(xiii) In our opinion, the Company is not a chit fund, nidhi mutual benefit fund/
society. Accordingly, clause 4(xiii) of the Order is not applicable.
(xiv) According to the information and explanation given to us, the Company is not
dealing or trading in shares, securities, debentures and other investments. Accordingly
clause 4(xiv) of the Order is not applicable.
(xv) According to the information and explanation given to us, the Company has not
given any guarantee for loans taken by others from bank or financial institutions during
the year. Accordingly clause 4(xv) of the Order is not applicable.
(xvi) To the best of our knowledge and belief and according to the information and
explanations and explanations given to us, term loans availed by the company were, prima
facie, applied by the company during the year for the purpose for which the loans were
obtained.
(xvii) According to the information and explanations given to us and on an overall
examination of the balance sheet of the company, in our opinion, no funds raised on
short-term basis have been used for long-term investment.
(xviii) According to the information and explanations given to us, the company has not
made preferential allotment of shares to a parties or company covered in the register
maintained under section 301 of the Act.
(xix) The Company has not issued any debentures during the year. Accordingly clause
4(xix) of the Order is not applicable.
(xx) The Company has not raised any money by public issue during the year. Accordingly
clause 4(xx) of the Order is not applicable.
(xxi) During the course of our examination of the books of account and records of the
Company, carried out in accordance with the generally accepted auditing practices in
India, and according to the information and explanations given us, we have neither come
across any instance of material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such case by the management.
|
For M/s. Lakhani & Co. |
|
Chartered Accountants |
|
Firm Regn No. 105524W |
| Place : Mumbai |
Parag Modi |
|
Partner |
| Date : April 17, 2013 |
Membership Number 114105 |
+91-9892691696
