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Ahluwalia Contracts (India) Ltd.

BSE: 532811 Sector: Infrastructure
NSE: AHLUCONT ISIN Code: INE758C01029
BSE 00:00 | 22 May 375.10 4.40
(1.19%)
OPEN

370.00

HIGH

379.90

LOW

370.00

NSE 00:00 | 22 May 370.65 -2.95
(-0.79%)
OPEN

379.90

HIGH

379.90

LOW

370.00

OPEN 370.00
PREVIOUS CLOSE 370.70
VOLUME 294
52-Week high 445.00
52-Week low 236.00
P/E 23.98
Mkt Cap.(Rs cr) 2,513
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 370.00
CLOSE 370.70
VOLUME 294
52-Week high 445.00
52-Week low 236.00
P/E 23.98
Mkt Cap.(Rs cr) 2,513
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Ahluwalia Contracts (India) Ltd. (AHLUCONT) - Auditors Report

Company auditors report

TO THE MEMBERS OF

AHLUWALIA CONTRACTS (INDIA) LIMITED

Report on the Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of AhluwaliaContracts (India) Limited ("the Company") which comprise the Balance Sheetas at 31st March 2017 the Statement of Profit and Loss the Cash Flow Statement for theyear then ended and a summary of the significant accounting policies and otherexplanatory information.

Management's Responsibility for the Standalone Financial Statements

2. The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparationand presentation of these Standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014 and the Companies (Accounting Standards) Amendment Rules2016. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

3. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

4. We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovision of the Act and the Rules made thereunder.

5. We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.

7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Opinion

8. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2017 and its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

9. As required by the Companies (Auditor's Report) Order 2016' ("the order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure –A statement on the matters specified in paragraphs3 and 4 of the Order.

10. 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 bestof 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 theCompany 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 Statementdealt with by this Report are in agreement with the books of account.

d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014 and the Companies (Accounting Standards) Amendment Rules2016;

e) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of Section164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B"; and

g) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our knowledge and belief and according to the information andexplanations given to us:

i. The Company has disclosed the impact if any of pending litigations as at 31stMarch 2017 on its financial position in its financial statements - Refer note 30 & 31to financial statements

ii. The Company has made provision as at 31st March 2017 as required under theapplicable law or accounting standards for material foreseeable losses if any onlong-term contracts including derivative contracts.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company during the year ended 31st March2017.

iv. The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from 8th November2016 to 30th December 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with the books of accountmaintained by the Company and as produced to us by the Management- Refer Note 43 tofinancial statements.

For ARUN K GUPTA & ASSOCIATES
Firm Registration No. 000605N
Chartered Accountants
(SACHIN KUMAR)
Place: New Delhi Partner
Dated: 30.05.2017 M.No. 503204

Annexure-A to Independent Auditors' Report

Referred to in paragraph 9 of the Independent Auditors' Report of even date to themembers of Ahluwalia Contracts India Limited on the standalone financial statements as ofand for the year ended 31st March 2017

(i) (a) The Company is maintaining proper records showing full particulars includingquantitative details. A separate record for movement of fixed assets showing situation ismaintained except for shuttering and scaffolding materials for which considering thenature of the business of the company maintenance of record is not feasible.

(b) Fixed assets have not been physically verified by the management during the year.There is a regular programme of verification of fixed assets except for shuttering andscaffolding materials which in our opinion is reasonable having regard to the size ofthe Company and the nature of its assets. In accordance with the said programme part ofthe fixed assets have been physically verified by the management during the year. Asinformed no material discrepancies were noticed on such verification.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of the immovable propertiesincluded in fixed assets are held in the name of the Company except given below:

LAND:

Total Number of cases Whether leasehold/ freehold Gross Block (as at Balance Sheet date) (Rs. in Lacs) Net Block (as at Balance Sheet date) (Rs. Remarks if any. in Lacs)
1 Leasehold - (Chattarpur New Delhi) 13.60 13.60 Registration is pending as per Bye Laws prevailing thereon.

BUILDING (KOLKATA):

Total Number of cases Gross Block (as at Balance Sheet date) (Rs. in Lacs) Net Block (as at Balance Sheet date) (Rs. Remarks if any. in Lacs)
1 345.60 301.87 Registration is pending as per State Government Directives /Bye Laws prevailing thereon.

(ii) The management has conducted physical verification of major items of inventory atreasonable intervals. No material discrepancies were noticed on physical verification ofsuch stocks.

(iii) The Company has not granted any loans secured or unsecured to companies firmsLimited Liability Partnerships or other parties covered in the register maintained undersection 189 of the Companies Act 2013. Therefore the provisions of clause3(iii)(iii)(a)(iii)(b)(iii)(c) of the said order are not applicable to the Company.

(iv) In our opinion and according to the information and explanations given to usprovisions of section 186 of the Companies Act 2013 in respect of investments made havebeen complied by the Company. There are no other loans guarantees and securities grantedin respect of which provisions of section 185 & 186 of the Companies Act 2013 areapplicable.

(v) The Company has not accepted any deposits from the public within the directivesissued by the Reserve Bank of India and the provisions of section 73 to 76 or any otherrelevant provisions of the Companies Act 2013 and the rules framed there under.

(vi) We have broadly reviewed the books of account maintained by the company pursuantto the rules made by the Central Government for the maintenance of cost records undersection 148(1) of the Companies Act 2013 and are of the opinion that prima facie theprescribed accounts and records have been made and maintained. However we have notcarried out detailed examination of such accounts and records with a view to determiningwhether they are accurate or complete.

(vii) a) Undisputed statutory dues including provident fund employees state insuranceincome-tax sales tax service tax duty of custom duty of excise value added tax cess& other material statutory dues have generally been regularly deposited withappropriate authorities except for delays in Service tax & Value added tax and in caseof Provident fund there has been slight delay in few cases.

b) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees state insurance income-tax sales taxservice tax duty of custom duty of excise value added tax cess & other materialstatutory dues were outstanding at the year end for a period of more than six monthsfrom the date they became payable.

c) According to the records of the company the dues outstanding of sales-taxincome-tax duty of custom duty of excise service tax value added tax and cess onaccount of any dispute are as follows:

Name of the Statute Nature of Dues Amount (Rs. in Lacs) Period to which the amount relates Forum where dispute is pending
Central Excise Act1944 Demand for Excise Duty 14.27 March-2011 to November-2012 Commissioner Bangalore
Central Excise Act1944 Demand for Excise Duty 360.90 2011-2012 to 2015-2016 Addl. Commissioner CE Noida
Indian Stamp Act Stamp duty on Real Estate Project 57.42 1990-1991 Allahabad High Court
Value Added Tax West Bengal 2005 VAT Demand 3.01 1998-1999 Appellate Tribunal Kolkata
Value Added Tax Act (Haryana) 2003 VAT Demand 254.84 2011-2012 Additional Commissioner HVAT Gurgaon
Value Added Tax Act (Orissa) 2004 VAT Demand 76.57 2007-2012 Jt. Comm. Sales tax Sambalpur
Value Added Tax Act (Karnataka) 2014 VAT Demand 22.99 2010-2013 Asst. Comm. Commercial tax (Audit) Bangalore
Value Added Tax Act (UP) 2015 VAT Demand 11.37 2005-2007 Appellate Tribunal Ghaziabad
Value Added Tax Act Maharashtra 2014 VAT Demand 16.43 2005-2006 Dy. Commissioner (Audit) Mumbai
Value Added Tax Act Maharashtra 2014 VAT Demand 1363.94 2009-2011 Jt. Commissioner Pune
Value Added Tax Act Maharashtra2014 VAT Demand 381.60 2010-2011 Dy. Commissioner Pune
Value Added Tax Act (UP) 2015 VAT Demand 91.48 2008-2009 Addl. Commissioner Appeals- IV GZB
Value Added Tax Act (Gujarat) 2013 VAT Demand 21.63 2011-2013 Dy. Commissioner Vadodara
Value Added Tax Act 2005 West Bengal VAT Demand 45.19 2005-2006 & 2006-2007 Directorate of Commercial Tax / Sr. Jt. Commissioner Kolkata
Value Added Tax Act 2005 West Bengal VAT Demand 1.54 1997-1998 Settlement Commissioner Kolkata
Value Added Tax Act 2005 West Bengal VAT Demand 497.15 2011-2012 West Bengal Commercial Tax Appellate & Revision Law Board Kolkata
Value Added Tax Act 2005 West Bengal VAT Demand 422.47 2008-2009 Additional Commissioner Kolkata
Value Added Tax Act 2005 West Bengal VAT Demand 2324.86 2012-2013 Joint Commissioner Kolkata
The Finance Act 2004 and the Service Tax Rules Service Tax Demand 637.34 2012-2013 CESTAT Mumbai
Service Tax Demand 2622.25 March-2005 to March-2009 CESTAT Kolkata
Service Tax Demand 3054.05 June-2007 to September-2010 CESTAT Allahabad
Service Tax Demand 47.75 October-2010 to February-2012 CESTAT Allahabad
Service Tax Demand 120.46 July-2004 to December-2006 CESTAT Allahabad
Service Tax Demand 59.52 2006-2008 Superintendent (AR Service Tax) Jamnagar
Service Tax Demand 431.49 2005-06/2008-09 Asstt. Commissioner Service Tax Mumbai
Service Tax Demand 218.09 2014-2016 Asstt. Commissioner Service Tax Mumbai
Service Tax Demand 8.71 2007-2008 Asstt. Commissioner Service Tax Rajkot
Service Tax Demand 20.37 April-2008 to August-2008 Joint Commissioner Service Tax Kolkata
Service Tax Demand 18.51 April-2006 to October-2009 Commissioner (Appeal) Service Tax Chennai
Service Tax Demand 787.09 2006-2009 Commissioner/Asstt. Commissioner/Joint Commissioner Service Tax Ludhiana
Service Tax Demand 11.92 2008-2009 2009-2010 Commissioner Service Tax Jaipur
Service Tax Demand 1298.42 April-2012 to March-2013 Commissionerate Service Tax Delhi
Service Tax Demand 385.54 2007-2008 to 2011-2012 Commissioner of Service Tax Delhi.
Service Tax Demand 778.28 April-2011 to March-2013 Commissioner Service Tax Delhi
Service Tax Demand 103.48 October-2005 to January-2008 Commissioner Service Tax Kolkata
Service Tax Demand 965.47 2008-2009 to 2011-2012 Commissioner Service Tax Bangalore
Service Tax Demand 202.05 April-2012 to June-2012 Commissioner Service Tax Bangalore
Service Tax Demand 193.85 2009-2012 Superintendent Service Tax Bangalore
Service Tax Demand 642.29 2008-2012 Commissioner Service Tax Bangalore
Service Tax Demand 125.63 April-2009 to December-2014 Commissioner Appeal Service Tax Meerut
Service Tax Demand 15.07 April-2012 to March-2013 Dy Commissioner Service Tax Noida
Service Tax Demand 5.68 July-2011 to March-2012 Commissioner Central Excise (Appeals) Noida
Employees Provident Fund & Miscellaneous Provision Act1952 Provident Fund Demand 5457.34 2006-2007 to 2008-2009 Employee Provident Fund Appellant Tribunal New Delhi

(viii) According to the records of the Company examined by us and the information andexplanation given to us the Company has not defaulted in repayment of dues to anyfinancial institution and banks. The Company does not have any dues outstanding todebenture holders.

(ix) Based on the audit procedures applied by us and according to the information &explanations provided by the management the Company has not raised any moneys by furtherpublic offer (including debt instruments) during the year. Term loans taken by the companyduring the year have been applied for the purpose for which the loans were obtained.

(x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management we report that no fraud by the company or no fraud/ materialfraud on the company by the officers and employees of the Company has been noticed orreported during the year.

(xi) According to the records of the Company examined by us and the information andexplanation given to us the Company has paid and provided managerial remuneration inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V of the Companies Act 2013.

(xii) In our opinion & according to the information & explanations given to usthe Company is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable.

(xiii) According to the records of the Company examined by us and the information andexplanation given to us the company has complied with section 177 and 188 of theCompanies Act 2013 in relation to transaction with related parties and the details havebeen disclosed in the financial statements as required by the applicable accountingstandards.

(xiv) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

(xv) According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe order is not applicable.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For ARUN K GUPTA & ASSOCIATES
Firm Registration No. 000605N
Chartered Accountants
(SACHIN KUMAR)
Place: New Delhi Partner
Dated: 30.05.2017 M.No. 503204

Annexure - B to the Auditors' Report

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of AhluwaliaContracts (India) Limited ("the Company") as of 31st March 2017 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI'). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany'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 financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For ARUN K GUPTA & ASSOCIATES
Firm Registration No. 000605N
Chartered Accountants
(SACHIN KUMAR)
Place: New Delhi Partner
Dated: 30.05.2017 M.No. 503204