To the Members of Unity Infraprojects Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Unity
Infraprojects Limited ("the Company"), which comprise the Balance Sheet as at
March 31, 2017, the Statement of Profit and Loss(including other comprehensive income),
Cash Flow Statement and the statement of changes in equity for the year then ended, and a
summary of significant accounting policies and other explanatory information(herein after
referred to as "standalone Ind As financial statements")
Managements Responsibility for the Standalone Ind AS financial statements
The Companys 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 standalone Ind AS financial statements that give a true and fair view of the
financial position, financial performance including other comphrehensive incom, cash flows
and changes in equity 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 read with Rule 7 of the Companies (Accounts) Rules, 2014.
This responsibility also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the Company and for
preventing and detecting frauds and other irregularities; selection and application of
appropriate accounting policies; making judgements 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 standalone Ind
AS 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 standalone 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 standalone 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 standalone Ind AS financial statements. The procedures selected
depend on the auditors judgment, including the assessment of the risks of material
misstatement of the standalone Ind AS financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal financial control
relevant to the Companys preparation of the standalone Ind AS financial statements that
give a true and fair view in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of the accounting estimates made by the Companys
Directors, as well as evaluating the overall presentation of the standalone 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 standalone Ind AS financial statements.
Basis for Qualified Opinion
a. We invite attention to Note 14 relating to loans repayable on demand from other
parties, under which loans & advances taken from six parties as at March 31 2017
amounting to Rs. 1,490.98 Lakhs is deemed as public deposit in terms of Section 73 of the
Companies Act, 2013, which amounts to violation of the same under the Act;
b. We invite attention to Note 4 relating to loans & advances given to four related
parties covered under section 185 of the Companies Act, 2013, under which loans &
advances given to four parties during the year after 1 April 2016 amounting to Rs.100.98
Lakhs is in violation of the section 185 of the Companies Act, 2013;
c. We invite attention to Note 14 relating to non current borrowings which includes
borrowings from four banks having balance as per books Rs. 53,149.80 Lakhs for which no
statement or confirmation is available. Consequent to which we are unable to determine the
financial position of the said bank balances and financial impact on loss could not be
ascertained as it has not been quantified; and
d. We invite attention to Note 8 relating to other bank balances under which fixed
deposits held with 3 banks amounting to Rs.230.05 Lakhs as on 31st March 2017 was not
verified by us as it was not provided by the management of the company. Consequent to
which we are unable to determine the financial position of the said bank balances and
financial impact on loss could not be ascertained as it has not been quantified.
Qualified Opinion
In our opinion and to the best of our information and according to the explanations
given to us, except for the effects of the matter described in the Basis for Qualified
Opinion paragraph, the standalone 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
state of affairs of the Company as at 31st March, 2017, and its loss (including other
comprehensive Income), its cash flows and the changes in equity for the year ended on that
date.
Emphasis of Matter
We draw attention to the following matters in the Notes to the Standalone Ind AS
financial statements:
Note 45 to the standalone Ind AS financial statements, which indicates that the Company
has accumulated losses and its net worth has been substantially eroded, current
liabilities are more than current assets and the Company has incurred a net cash loss
during the current and previous year. These conditions, along with other matters set forth
in the Note 55, cast doubt about the Companys ability to continue as a going concern.
However, standalone the Ind AS financial statements of the Company have been prepared on a
going concern basis for the reasons stated in the said Note; and
Note 4 related to loans to related Parties which indicates that the Company has given
advances to 12 related parties amounting to Rs. 6,555.90 Lakhs whose networth was negative
as on 31st March, 2017. Management has given the representation that the said advances are
recoverable.
Our opinion is not modified in respect of these matters.
Other Matter
The standalone Ind AS financial statements include the financial statements of 12 joint
operations, which have been audited by other auditors, whose reports has been furnished to
us, and our opinion, insofar as it relates to the amounts in respect of joint operations
is based solely on reports of the other auditors. the amount of assets, gross revenue
of the joint ventures to the extent to which they are reflected in the standalone Ind AS
financial statements are Rs. 23,992.29 Lakhs and Rs.7,552.53 Lakhs respectively.
Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditors Report) Order, 2016 ("the Order")
issued by the Central Government of India in terms of sub-section (11) of section 143 of
the Act, we give in the Annexure "I", a statement on the matters specified in
paragraphs 3 and 4 of the Order, to the extent applicable.
2 As required by section 143(3) of the Act, we report that:
a we have sought and obtained all the information and explanations which to the best of
our knowledge and belief were necessary for the purpose of our audit;
b in our opinion, proper books of account as required by law have been kept by the
Company so far as appears from our examination of those books;
c the Balance Sheet, the Statement of Profit and Loss, and the Cash Flow
Statement,statement of changes in equity dealt with by this Report are in agreement with
the books of account;
d in our opinion, the aforesaid standalone Ind AS financial statements comply with the
Accounting Standards specified under Section 133 of the Companies Act, 2013, read with
Rule 7 of the Companies (Accounts) Rules, 2014;
e The matter described in the Basis for Qualified Opinion paragraph and under the
Emphasis of Matters paragraph above, in our opinion, may have an adverse effect on the
functioning of the Company;
f on the basis of written representations received from the directors as on March 31,
2017, and taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2016, from being appointed as a director in terms of section 164 (2) of
the Act;
g 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 II"; and
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 on its financial
position in its Ind AS financial statements - Refer Note 37 to the standalone Ind AS
financial statements;
ii. the Company did not have any longterm 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 Education and Protection Fund by the Company; and
iv the Company has provided requisite disclosures in its standalone Ind As financial
statements as to the holdings as well as dealings in Specified Bank Notes during the
period from 8th November, 2016 to 30th December, 2016, are in accordance with the books of
accounts maintained by the company - Refer Note 49 to the standalone Ind AS financial
statements.
|
For C. B. Chhajed & Co. |
|
Chartered Accountants |
|
(Firms Regn. No. 101796 W) |
|
C. B. Chhajed |
| Place : Mumbai |
(Partner) |
| Dated : 15.05.2017 |
Membership No : 009447 |
ANNEXURE "I" TO THE INDEPENDENT AUDITORS REPORT
[Referred to in paragraph 1 of "Report on other legal and regulatory
requirements" of our report of even date]
TO THE MEMBERS OF UNITY INFRAPROJECTS LIMITED
(the Company)
1 a. The Company has maintained proper records showing full particulars including
quantitative details and situation of fixed assets on the basis of available information.
b. The fixed assets of the Company have been physically verified by the management
during the year and no material discrepancies between the book records and the physical
inventory have been noticed. In our opinion,the frequency of verification is reasonable.
c. In our opinion and according to the information and explanations given to us, the
title deeds of immovable properties are held in the name of the company except in case of
Flat at Taloja carrying value of Rs. 3.91 Lakhs whose title deed is held in the name of
Mr. Ramchandran, director of one group company.
2 The inventory (excluding stocks with third parties) has been physically verified by
the management during the year. In respect of inventory lying with third parties, these
have substantially been confirmed by them. In our opinion, the frequency of verification
is reasonable. No discrepancies were noticed on physical verification of inventory.
3 According to the information and explanations given to us, the Company has granted
secured / unsecured loans, to a eight subsidiary companies, five associate companies and
one partnership firm covered in the register maintained under Section 189 of the Act. In
respect of aforesaid loans
a In our opinion and according to the information and explanations given to us, the
terms and conditions of such loans are not prima facie prejudicial to the interest of the
Company.
b The principal amounts are repayable on demand and there is no repayment schedule. The
interest is payable on demand.
c In respect of the aforesaid loans, the same are repayable on demand and therefore the
question of overdue amounts does not arise. In respect of interest, no interest is charged
by the company.
4 In our opinion, the company has given loan to four companies in contravention of
Section 185 of the Act. However, the company has complied with the provisions of section
186 in respect of the loans, investments, guarantees and securities, wherever applicable.
5 In our opinion and according to the information and explanations given to us, the
Company has not complied with the directives issued by Reserve Bank of India and the
provisions of Sections 73 to 76 or any other relevant provisions of the Act and the
Companies (Acceptance of Deposits) Rules, 2014 with regard to the amount received from six
parties. which is deemed as public deposit in terms of Section 73 of the Act. According to
the information and explanations given to us, no Order has been passed by the Company Law
Board or National Company Law Tribunal or Reserve Bank of India or any Court or any other
Tribunal on the company in respect of the aforesaid deposits.
6 "We have broadly reviewed the books of account maintained by the Company in
respect of products where, pursuant to the Rules made by the Central Government of India,
the maintenance of cost records has been prescribed under sub-section (1) of Section 148
of the Act and are of the opinion that prima facie, the prescribed accounts and records
have been made and maintained as confirmed by the cost auditor appointed by the company.
The cost audit for the financial year 2015-16 has been completed.
We have not, however, made a detailed examination of the records with a view to
determine whether they are accurate or complete."
7 a) Based on verification of Books of Accounts and other records of the company
examined by us, in our opinion, the Company is not regular in depositing undisputed
statutory dues namely provident fund, investor education and protection fund, employees
state insurance, income-tax, sales-tax, service tax, customs duty, excise duty, cess and
other statutory dues as applicable, with the appropriate authorities. The Statutory dues
outstanding as on Balance Sheet date for a period of more than six months from the date
they became payable, are listed below:
| Name of the Statute |
Nature of Dues |
Amount (Rs. In Lakhs) |
Period to which the amount relates |
Date of Payment |
| The Income Tax Act, 1961 |
Tax Deducted at Source |
2,075.19 |
F.Y. 2013-14 |
Not Paid |
| 1,012.17 |
F.Y. 2014-15 |
Not Paid |
| 620.43 |
F.Y. 2015-16 |
Not Paid |
| 168.09 |
F.Y. 2016-17 |
Not Paid |
| Corporate Dividend Tax |
120.19 |
F.Y. 2011-12 |
Not Paid |
| 24.04 |
F.Y. 2012-13 |
Not Paid |
| Interest on CDT |
23.32 |
F.Y. 2012-13 |
Not Paid |
| Interest on CDT |
20.11 |
F.Y. 2014-15 |
Not Paid |
| Interest on CDT |
14.51 |
F.Y. 2015-16 |
Not Paid |
| Interest on CDT |
8.65 |
F.Y. 2016-17 |
Not Paid |
| Interest on TDS |
526.57 |
F.Y. 2014-15 |
Not Paid |
| Interest on TDS |
718.58 |
F.Y. 2015-16 |
Not Paid |
| Interest on TDS |
387.08 |
F.Y. 2016-17 |
Not Paid |
| Employee State Insurance Act |
Employers Contribution |
0.60 |
F.Y. 2015-16 |
Not Paid |
| Employees Contribution |
0.20 |
F.Y. 2015-16 |
Not Paid |
| Employers Contribution |
0.22 |
F.Y. 2016-17 |
Not Paid |
| Employees Contribution |
0.16 |
F.Y. 2016-17 |
Not Paid |
| Sales Tax Act |
TDS on Works Contract |
19.14 |
F.Y. 2014-15 |
Not Paid |
| 61.28 |
F.Y. 2013-14 |
Not Paid |
| 37.11 |
F.Y. 2015-16 |
Not Paid |
| Provident Fund & Misc Act |
Provident Fund - Employers Contribution |
121.53 |
F.Y. 2015-16 |
Not Paid |
| Provident Fund - Employers Contribution |
13.86 |
F.Y. 2016-17 |
Not Paid |
| Provident Fund - Employees Contribution |
21.06 |
F.Y. 2016-17 |
Not Paid |
| GVAT |
Value Added Tax |
8.05 |
F.Y. 2014-15 |
Not Paid |
| Finance Act, 1994 |
Service Tax |
89.52 |
F.Y. 2014-15 |
Not Paid |
| 126.82 |
F.Y. 2015-16 |
Not Paid |
| 23.47 |
F.Y. 2016-17 |
Not Paid |
| Various Profession Tax Laws |
Professional tax |
23.81 |
F.Y. 2013-14 |
Not Paid |
| 12.61 |
F.Y. 2014-15 |
Not Paid |
| 8.48 |
F.Y. 2015-16 |
Not Paid |
| 1.14 |
F.Y. 2016-17 |
Not Paid |
b) According to the information and explanations given to us and the records of the
Company examined by us, the particulars of dues of income-tax, sales-tax, service tax,
customs duty, excise duty and cess as on Balance Sheet Date which have not been deposited
on account of a dispute, are as follows -
| Name of the Statute |
Nature of Dues |
Amount (Rs. In Lakhs) |
Period to which the amount relates |
Forum where the dispute is pending |
| Income Tax Act,1961 |
Income Tax |
47.27 |
A.Y.2005-06 |
Income Tax Appellate Tribunal, Mumbai |
| Income Tax Act,1961 |
Income Tax |
17.55 |
A.Y.2006-07 |
Income Tax Appellate Tribunal, Mumbai |
| Income Tax Act,1961 |
Income Tax |
180.11 |
A.Y.2006-07 |
Commissioner of Income Tax, Appeal |
| Income Tax Act,1961 |
Income Tax |
209.36 |
A.Y.2007-08 |
Income Tax Appellate Tribunal, Mumbai |
| Income Tax Act,1961 |
Income Tax |
11.99 |
A.Y.2007-08 |
Commissioner of Income Tax, Appeal |
| Income Tax Act,1961 |
Income Tax |
33.20 |
A.Y.2008-09 |
Income Tax Appellate Tribunal, Mumbai |
| Income Tax Act,1961 |
Income Tax |
1,160.92 |
A.Y.2008-09 |
Commissioner of Income Tax, Appeal |
| Income Tax Act,1961 |
Income Tax |
327.39 |
A.Y.2009-10 |
Commissioner of Income Tax, Appeal |
| Income Tax Act,1961 |
Income Tax |
4,753.12 |
A.Y.2010-11 |
Commissioner of Income Tax, Appeal |
| Income Tax Act,1961 |
Income Tax |
3,689.33 |
A.Y.2011-12 |
Commissioner of Income Tax, Appeal |
| Income Tax Act,1961 |
Income Tax |
2,916.86 |
A.Y.2012-13 |
Commissioner of Income Tax, Appeal |
| Income Tax Act,1961 |
Income Tax |
4,848.83 |
A.Y.2013-14 |
Commissioner of Income Tax, Appeal |
| Income Tax Act,1961 |
Income Tax |
1,918.20 |
A.Y.2014-15 |
Commissioner of Income Tax, Appeal |
| Maharashtra Value Added Tax Act, 2002 |
Maharashtra Value Added Tax |
162.22 |
A.Y.2006-07 |
Joint Commissioner of Sales Tax (Appeal - VI) |
| Maharashtra Value Added Tax Act, 2002 |
Maharashtra Value Added Tax |
1.90 |
AY 2007-08 |
Joint Commissioner of Sales Tax (Appeal - VI) |
| Maharashtra Value Added Tax Act, 2002 |
Maharashtra Value Added Tax |
4,301.22 |
A.Y.2009-10 |
Joint Commissioner of Sales Tax (Appeal - VI) |
| Maharashtra Value Added Tax Act, 2002 |
Maharashtra Value Added Tax |
8.94 |
AY2010-11 |
Joint Commissioner of Sales Tax (Appeal - VI) |
| Maharashtra Value Added Tax Act, 2002 |
Maharashtra Value Added Tax |
123.25 |
A.Y.2011-12 |
Joint Commissioner of Sales Tax (Appeal - VI) |
| Maharashtra Value Added Tax Act, 2002 |
Maharashtra Value Added Tax |
157.19 |
A.Y.2007-08 |
Joint Commissioner of Sales Tax (Appeal - VI) |
| Madhya Pradesh Value Added Tax Act, 2002 |
Madhya Pradesh Value Added Tax |
323.57 |
A.Y.2013-14 |
Commissioner of Sales Tax |
| Central Excise Act, 1944 |
Excise |
9.09 |
F.Y. 2012-13 |
Appellate Tribunal Cestat |
| Central Excise Act, 1944 |
Excise |
30.42 |
F.Y. 2013-14 |
Appellate Tribunal Cestat |
| Central Excise Act, 1944 |
Excise |
8.36 |
F.Y. 2014-15 |
Appellate Tribunal Cestat |
| Finance Act 1994 |
Service Tax |
56,015.21 |
F.Y. 2010-11 to F.Y. 2014-15 |
Adjudication Cell, Principal Commissioner Service Tax
-III |
| Finance Act 1994 |
Service Tax |
31.52 |
F.Y. 2009-12 |
Commissioner of Central Excise Appeals |
| Finance Act 1994 |
Service Tax |
10.37 |
F.Y. 2012-14 |
Commissioner of Central Excise Appeals |
| Finance Act 1994 |
Service Tax |
4.89 |
F.Y. 2014-16 |
Commissioner of Central Excise Appeals |
8 According to the records of the Company examined by us and the information and
explanation given to us, the Company has not paid installment including interest thereon,
to financial institutions and banks since amount payable has been converted into Working
Capital Term Loan, Funded Interest Term Loan and equity shares as per the CDR Scheme with
CDR Lenders. However the amount payable during the year as per the CDR Scheme has not been
paid by the company. Details of the said default is as follows :
| Name of Lender |
Amount of Default |
Period of Default |
| Abhyudaya Bank |
275.72 |
30th April 2016 to 31st March 2017 |
| Allahabad Bank |
633.63 |
30th April 2016 to 31st March 2017 |
| Axis Bank |
104.03 |
30th April 2016 to 31st March 2017 |
| Bank of Baroda |
190.34 |
30th April 2016 to 31st March 2017 |
| Bank of Maharashtra |
370.50 |
30th April 2016 to 31st March 2017 |
| Catholic Syrian Bank |
124.82 |
30th April 2016 to 31st March 2017 |
| Central Bank Of India |
1,003.73 |
30th April 2016 to 31st March 2017 |
| Corporation Bank |
239.42 |
30th April 2016 to 31st March 2017 |
| DBS BANK LTD |
50.48 |
30th April 2016 to 31st March 2017 |
| Dena Bank |
172.40 |
30th April 2016 to 31st March 2017 |
| ICICI Bank |
718.02 |
30th April 2016 to 31st March 2017 |
| IDBI Bank |
121.37 |
30th April 2016 to 31st March 2017 |
| Indian Bank |
149.22 |
30th April 2016 to 31st March 2017 |
| Name of Lender |
Amount of Default |
Period of Default |
| Indian Overseas Bank |
180.99 |
30th April 2016 to 31st March 2017 |
| Indusind Bank Ltd |
60.22 |
30th April 2016 to 31st March 2017 |
| Ing Vysya Bank |
34.29 |
30th April 2016 to 31st March 2017 |
| L & T Infrastructure Finance Co. Ltd. |
30.73 |
30th April 2016 to 31st March 2017 |
| Standard Chartered Bank |
138.37 |
30th April 2016 to 31st March 2017 |
| State Bank Of India |
404.83 |
30th April 2016 to 31st March 2017 |
| State Bank Of Mysore |
103.86 |
30th April 2016 to 31st March 2017 |
| State Bank Of Patiala |
102.53 |
30th April 2016 to 31st March 2017 |
| Uco Bank |
484.84 |
30th April 2016 to 31st March 2017 |
| Union Bank Of India |
307.97 |
30th April 2016 to 31st March 2017 |
| Total |
6,002.36 |
|
9 The Company has not raised money by way of initial public offer or further public
offer or debt instruments. Term loans taken by the company, in our opinion, and according
to the information and explanations given to us, on an overall basis, have been applied
for the purposes for which they were obtained.
10 During the course of our examination of the books and records of the Company,
carried out in accordance with the generally accepted auditing practices in India, and
according to the information and explanations given to us, we have neither come across any
instance of fraud on or by the Company, noticed or reported during the year, nor have we
been informed of such case by the management.
11 In our opinion and according to the information and explanations given to us, the
Company has not paid or provided any managerial remuneration. Accordingly, clause (xi) of
paragraph 3 of the Order is not applicable to the Company.
12 In our opinion and according to the information and explanations given to us, the
company is not a nidhi company. Accordingly, clause (xii) of paragraph 3 of the order is
not applicable to the company.
13 In our opinion and according to the information and explanations given to us, the
company has complied with sections 177 and 188 of the Act in respect of transactions
entered with the related parties during the year. Details of the transactions have been
adequately disclosed in Note 34 of the standalone Ind AS financial statements.
14 According to the information and explanations given to us, the Company has not made
any preferential allotment or private placement of shares or fully or partly convertible
debentures during the year. Accordingly, clause (xiv) of paragraph 3 of the order is not
applicable to the company.
15 According to the information and explanations given to us, the Company has not
entered into any noncash transactions during the year with the directors or persons
connected with directors. Accordingly, clause (xv) of paragraph 3 of the order is not
applicable to the company.
16 According to the information and explanations given to us, the Company is not
required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
Accordingly, clause (xvi) of paragraph 3 of the order is not applicable to the company.
|
For C. B. Chhajed & Co. |
|
Chartered Accountants |
|
(Firms Regn. No. 101796 W) |
| Place : Mumbai |
C. B. Chhajed |
| Dated : 15.05.2017 |
(Partner) |
ANNEXURE "II" TO THE INDEPENDENT AUDITORS REPORT OF EVEN DATE ON THE
STANDALONE FINANCIAL STATEMENTS OF UNITY INFRAPROJECTS LIMITED
Report on the Internal Financial Controls 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 Unity
Infraprojects Limited ("the Company") as of March 31, 2017 in conjunction with
our audit of the standalone Ind AS financial statements of the Company for the year ended
on that date.
Managements Responsibility for Internal Financial Controls
The Companys 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 companys policies, the safeguarding of its assets, the prevention
and detection of frauds and errors, the accuracy and completeness of the accounting
records, and the timely preparation of reliable financial information, as required under
the Act.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys 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") 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 auditors judgement, including the assessment of the risks of
material misstatement of the standalone 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 Companys internal financial controls system
over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys 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 companys 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 authorisations of
management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised acquisition, use, or disposition of the
companys 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, 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, 2017, 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.
Other Matter
Our aforesaid reports under Section 143(3)(i) of the Act on the adequacy and operating
effectiveness of the internal financial controls over financial reporting insofar as it
relates to 12 joint ventures, is based on the corresponding reports of the other auditors.
|
For C. B. Chhajed & Co. |
|
Chartered Accountants |
|
(Firms Regn. No. 101796 W) |
|
C. B. Chhajed |
| Place : Mumbai |
(Partner) |
| Dated : 15.05.2017 |
Membership No : 009447 |
+91-9892691696
