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Artefact Projects Ltd.

BSE: 531297 Sector: Engineering
NSE: N.A. ISIN Code: INE885B01014
BSE LIVE 13:28 | 06 Dec 21.80 -1.10
(-4.80%)
OPEN

21.80

HIGH

21.80

LOW

21.80

NSE LIVE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 21.80
PREVIOUS CLOSE 22.90
VOLUME 147
52-Week high 38.15
52-Week low 20.85
P/E
Mkt Cap.(Rs cr) 12.06
Buy Price 21.80
Buy Qty 53.00
Sell Price 24.00
Sell Qty 100.00
OPEN 21.80
CLOSE 22.90
VOLUME 147
52-Week high 38.15
52-Week low 20.85
P/E
Mkt Cap.(Rs cr) 12.06
Buy Price 21.80
Buy Qty 53.00
Sell Price 24.00
Sell Qty 100.00

Artefact Projects Ltd. (ARTEFACTPROJECT) - Auditors Report

Company auditors report

To

The Members of

ARTEFACT PROJECTS LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of ARTEFACTPROJECTS LIMITED ("the Company") which comprise the Balance sheet asat 31st March 2015 the Statement of Profit and Loss and Cash Flow Statement for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation.

Management’s Responsibility for the Standalone Financial Statements

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 preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theAccounting Principles Generally Accepted in India (Indian GAAPs) including AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the standalone financial statements that give a true and fair view and arefree from material misstatement whether due to fraud or error.

Auditors’ Responsibility

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

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 theprovisions of the Act and the Rules made thereunder.

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 standalone financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the standalone financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe standalone financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal control relevant to the Company’spreparation of the standalone financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances but not for thepurpose of expressing an opinion on whether the Company has in place an adequate internalfinancial control system over financial reporting and the operating effectiveness of suchcontrols. An audit also includes evaluating the appropriateness of accounting policiesused and the reasonableness of the accounting estimates made by the management as well asevaluating the overall presentation of the standalone financial statements.

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.

Basis for Qualified Opinion

We refer to Note.16 to the standalone financial statements wherein the Management ofthe Company has considered Trade Receivables outstanding for more than 6 months amountingto Rs. 99270767 as good and fully recoverable. In the absence of balance confirmations /reconciliations from the customers from whom these amounts are due or other alternateaudit evidence to corroborate management's assessment of recoverability of these balancesand having regard to the age of these balances we are unable to comment the extent towhich these balances are recoverable.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the possible effects of the matter described in the basis forqualified opinion paragraph above the aforesaid standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2015 and its profit and its cash flows for theyear ended on that date.

Emphasis of Matter

We draw attention to the Note No. 9.01 to the standalone financial statementsaccording to which the Company doesn’t have information in respect of creditorsregarding their status under the Micro Small and Medium Enterprises Development Act 2006and hence it has not separately disclosed the amount payable to Micro Small and MediumEnterprises.

Our opinion is not modified in respect of this matter.

Other Matters

The standalone financial statements and other financial information include theCompany’s proportionate share in jointly controlled total assets of Rs. 135289512 total revenue of Rs. 2342826 total expenditure of Rs. 1462788 and the elementsmaking up the Cash Flow Statement and related disclosures in respect of an UnincorporatedJoint Ventures which is based on audited financial statements of the respective JointVentures audited by one of the Joint Auditor’s and furnish to us.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2015 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure a statement on the matters specified inparagraphs 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 bestof our knowledge and belief were necessary for the purposes of our audit except for thematter described in the Basis for Qualified Opinion paragraph.

(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 standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

(e) The matter described in the Basis for Qualified Opinion paragraph above in ouropinion may have an adverse effect on the functioning of the company.

(f) On the basis of the written representations received from the directors as on 31stMarch 2015 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2015 from being appointed as a director in terms of Section164 (2) of the Act.

(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 information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements as referred to in Note No. 16.02 and 28 tothe standalone financial statements.

ii. The Company does not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses.

iii. There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

For Chaturvedi & Shah ForNaresh Patadia & Co.
Chartered Accountants Chartered Accountants
Firm Reg. No. - 101720W Firm Reg. No. - 106936W
R. Koria Naresh Patadia
Partner Proprietor
Membership No. – 35629 Membership No. – 35620
Place: Mumbai Place: Nagpur
Date: 30th May 2015 Date: 30th May 2015

ANNEXURE TO AUDITOR’S REPORT

(Referred to in paragraph 1 under the heading "Report on Other Legal andRegulatory Requirements" of our report of even date to the members of ArtefactProjects Limited on the accounts for the year ended 31st March 2015)

i. In respect of its fixed assets:

a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b. As explained to us the Company has physically verified the assets in accordancewith a phased program of verification which in our opinion is reasonable having regardto the size of the Company and the nature of its business. The reconciliation of assets soverified with the fixed assets register is in process.

ii. In respect of its inventories:

The Company is a service company primarily rendering Project management services.Accordingly it does not hold any inventories. Therefore the provisions of Clause (ii) ofParagraph 3 of the Order are not applicable to the company.

iii. In respect of loans secured or unsecured granted by the Company to companiesfirms or other parties covered in the register maintained under section 189 of the Act:

a. The Company has given advances in the nature of loan to its wholly owned subsidiaryand as per the information and explanations given to us the above loan is repayable ondemand. Receipt of interest is regular.

b. As the loan is repayable on demand the question of overdue amount does not arise.

iv. In our opinion and according to the information and explanations given to us thereis an adequate internal control system commensurate with the size of the Company and thenature of its business for the purchase of fixed assets and for the sale of services.During the course of our audit we have not observed any continuing failure to correctmajor weaknesses in internal control system. There was no purchase or sale of goods duringthe year under audit.

v. According to the information and explanations given to us the Company has notaccepted any deposits from the public. Therefore the provisions of Clause (v) ofParagraph 3 of the Order are not applicable to the Company.

vi. According to the information and explanations given to us the Central Governmenthas not prescribed the cost records to be maintained under sub-Section (1) of Section 148of the Act in respect of activities carried on by the Company. Therefore the provisions ofClause (vi) of paragraph 3 of the Order are not applicable to the Company.

vii. According to the information and explanations given to us in respect of statutorydues:

a. The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employees’ State Insurance Wealth tax Duty of CustomsDuty of Excise Value Added Tax Cess to the extend applicable with the appropriateauthorities during the year. However delays have been noticed in depositing undisputedstatutory dues in respect of Service Tax Income Tax and Sales Tax with the appropriateauthorities during the year. According to the information and explanations given to us noundisputed amounts payable in respect of such statutory dues were outstanding as at 31stMarch 2015 for a period of more than six months from the date they became payable exceptin case of Service Tax dues of Rs. 29866054 and Sales Tax of Rs. 50000.

b. There are no disputed statutory dues of Income tax Sales tax Wealth tax Servicetax Duty of Customs Duty of Excise Value added tax and Cess which have not beendeposited on account of disputed matters pending before appropriate authorities.

c. There is no delay in transferring amounts required to be transferred to InvestorEducation and Protection Fund in accordance with the relevant provision of the CompaniesAct 1956 and rule made there-under.

viii. The Company does not have accumulated losses at the end of the financial year.The Company has not incurred cash losses during the financial year covered by the auditand in the immediately preceding financial year.

ix. Based on our audit procedures and information and explanations given by themanagement we are of the opinion that as on 31st March 2015 the Company has notdefaulted in repayment of dues to financial institutions andbanks except in the repaymentof the principal amount of secured term loan of Rs. 39075493 and interest thereon of Rs.527743 where the period of default was more than 90 days.

x. The Company has given corporate guarantees aggregating to Rs. 105000000 for creditfacilities taken by Artefact Infrastructure Limited (AIL) a wholly owned subsidiary ofthe Company from a bank as at 31st March 2015. The terms and conditions of the CorporateGuarantees are not prejudicial to the interest of the Company.

xi. The Company has not raised any new term loans during the year under audit. To thebest of our knowledge and according to the information and explanations given to us theterm loans outstanding at the beginning of the year have been applied for the purposes forwhich they were raised.

xii. In our opinion and according to the information and explanations given to us nofraud by the Company and no material fraud on the Company has been noticed or reportedduring the year.

For Chaturvedi & Shah For Naresh Patadia & Co.
Chartered Accountants Chartered Accountants
Firm Reg. No. - 101720W Firm Reg. No. - 106936W
R. Koria Naresh Patadia
Partner Proprietor
Membership No. – 35629 Membership No. – 35620
Place: Mumbai Place: Nagpur
Date: 30th May 2015 Date: 30th May 2015

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