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Consolidated Construction Consortium Ltd.

BSE: 532902 Sector: Infrastructure
NSE: CCCL ISIN Code: INE429I01024
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OPEN 4.25
PREVIOUS CLOSE 4.13
VOLUME 35095
52-Week high 6.57
52-Week low 2.52
P/E
Mkt Cap.(Rs cr) 157.41
Buy Price 3.95
Buy Qty 2379.00
Sell Price 4.00
Sell Qty 2000.00
OPEN 4.25
CLOSE 4.13
VOLUME 35095
52-Week high 6.57
52-Week low 2.52
P/E
Mkt Cap.(Rs cr) 157.41
Buy Price 3.95
Buy Qty 2379.00
Sell Price 4.00
Sell Qty 2000.00

Consolidated Construction Consortium Ltd. (CCCL) - Auditors Report

Company auditors report

To The Members of Consolidated Construction Consortium Ltd.

1. Report on the StandaloneFinancial Statements

We have audited the accompanying standalonefinancial statements of ConsolidatedConstruction Consortium Limited ("the Company") which comprise the BalanceSheet as at March 31 2016 the Statement of Profit and Loss the Cash Flow Statement forthe year then ended and a summary of significant accounting policies and otherexplanatory information.

2. 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 preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance 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.

3. Auditor’s Responsibility

Our responsibility is to express an opinion on thesestandalone 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 financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company’s Directors as well as evaluating theoverall presentation of the financial statements.

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

4. Opinion

In our opinion and to the best of our information and according to the explanationsgiven to usthe financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:

a) in the case of the Balance Sheet of the state of affairs of the Company as at March31 2016; and

b) in the case of the Statement of Profit and Loss of the loss for the year ended onthat date;

c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

5. Emphasis of Matter

1. We draw your attention to Note 5.1 regarding financial condition and mitigatingfactors and preparation of financial statements on going concern basis by management. Thefinancial statements do not include any adjustment in lieu of assertion in this regard.

2. We also draw your attention to Note 5.7 with regard to receivablesand provisionsthereon made by the management based on the recoverability; Furtherstatus on the bankguarantees invoked by the clients in earlier yearsdue to alleged contractualnon-performance and on-going legal/arbitration proceedingsfor which provisioning will beconsidered by the management based on the final outcome of the resolution of theproceedings.

Our opinion is not qualified/modified in respect of these matters.

6. Report on Other Legal and Regulatory Requirements

6.1 As required by the Companies (Auditor’s Report) Order 2016 ("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 mattersspecified in paragraphs 3 and 4 of the Order tothe extent applicable.

6.2 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.

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

e) On the basis of the written representations received from the directors and taken onrecord by the Board of Directors none of the directors is disqualified as on March 312016 from being appointed as a director in terms of Section 164 (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 ourseparate Report in "Annexure B".

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 financial statements- referNote 5.12 to the financial statements;

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts;

iii. There were no amounts which were pending to be transferred to the InvestorEducation and Protection Fund by the Holding Company and its Subsidiary Companiesincorporated in India .

For ASA & ASSOCIATES LLP
Firm Registration No: 009571N/N500006
Chartered Accountants
S Sundar Rajan
Place : Chennai Partner
Date : May 25 2016 Membership No:211414

Annexure-A to the Independent Auditors’ Report

Referred to in paragraph 6.1 of the Independent Auditors’ Report of even date tothe members of

Consolidated Construction Consortium Limited on the standalone financial statements forthe year ended March 31 2016

(i) a. The company is maintaining proper records showing full particulars includingquantitative details and situation of the fixed assets.

b. The company has a regular programme of physical verification of fixed assets in aphased manner at periodical interval. Pursuant to the program certain assets were coveredby physical verification during the year. In our opinion the frequency of verification ofthe fixed assets is reasonable having regard to the size of the company and the nature itsassets.

c. In our opinion and according to the information and explanation given to us thetitle deed of immovable property being land is in the name of the Company. However thesame is offered as Collateral for the loan taken by the Company.

(ii) As explained to us the inventories including site materials stores andconstruction aids have been physically verified by the management at reasonable intervalsand informed that no material discrepancies were noticed on such physical verification;

(iii) According to the information and explanations given to us and records of thecompany examined by us the Company has granted interest free unsecured loans to itssubsidiary company and Step down subsidiaries companies covered in the register maintainedunder section 189 of the Companies Act 2013. In the absence of any schedule of repaymentwe could not report on the overdue amounts as required under clause (iii) of the Order2013;

(iv) According to the information and explanation given to us in respect of the loangrantedinvestments made and guarantees provided provisions of Sections 185 and Sections186 of Companies Act 2013 have been complied with except for charging of Interest on theloans as required u/s.186(7) of the Act;

(v) The Company has not accepted any deposits from the public within the meaning of thedirectives issued by the Reserve Bank of India and the provisions of sections 73 to 76 orany other relevant provisions of the Companies Act and the rules framed there under.

(vi) We have broadly reviewed the books of account maintained by the Company in respectof services where pursuant to the rules made by the Central Government of India themaintenance of cost records has been prescribed under the Act been madeand are of theopinion that prime facie the prescribed accounts and records have been made andmaintained. We have not however made a detailed examination of the records with a view todetermine whether they are accurate or complete.

(vii) a) According to the information and explanations given to us and the records ofthe Company examined by us in our opinion the Company is generally regular in depositingthe undisputed statutory dues including provident fund investor education andprotectionfund employees’ state insurance income-tax sales tax/Value Added Tax(VAT) wealthtax service tax customs duty excise duty cess and other material statutory dues asapplicable with the appropriate authorities. There are no undisputed statutory dues whichare in arrear for more than six month from the date it became due.

b. According to the information given to us the particulars of dues of income-taxsales-tax/ Value Added Tax(VAT) wealth tax service tax customs duty excise duty andcess as at March 31 2016 which have not been deposited on account of a dispute are asfollows:

(Rs. in lakhs)
Name of Statue Nature of Dispute Reference Amount Periods to which the amount relates (F.Y.) Forum where the disputes are pending
Disallowance of certain expenditure and claims AO dated 28.12.2010 225.68*** 2005-2006 High Court of Madras
AO dated 28.03.2013 258.42 2009-10 Income Tax Appellate Tribunal
AO dated 31.03.2014 1708.98** 2010-11 Commissioner of Income Tax (Appeals)-I Chennai
Income Tax Act 1961 AO dated 13.03.2015 88.51** 2011-12 Commissioner of
Income Tax (Appeals)-I Chennai
AO dated 30.03.2016 584.30** 2012-13 Commissioner of Income Tax (Appeals)-I Chennai
Kerala VAT Sales made to SEZ claimed as exempt (Extension of benefit in KGST Sought) Assessment No. D/753/ 06/2005-06 dated 31.07.2008 55.10 2005-2006 Appellate Assistant Commissioner Cochin
Karnataka VAT Inputs Rejected by applying the Centum industries Judgment i.e input is taken in a particular tax period which is not relevant to that period Assessment dated 31/03/2015 165.77 2010-2011 FAA (Joint Commissioner of Commercial Taxes Appeals - 3 Bangalore.
Inputs Rejected by applying the Centum industries Judgment i.e input is taken in a particular tax period which is not relevant to that period Assessment dated 04/05/2015 173.89 2011-2012 FAA (Joint Commissioner of Commercial Taxes Appeals - 3 Bangalore.
Inputs Rejected by applying the Centum industries Judgment i.e input is taken in a particular tax period which is not relevant to that period Assessment dated 12/05/2015 224.86 2012-2013 FAA (Joint Commissioner of Commercial Taxes Appeals - 3 Bangalore.
Inputs Rejected by applying the Centum industries Judgment i.e input is taken in a particular tax period which is not relevant to that period Assessment dated 04/06/2015 180.86 2013-2014 FAA (Joint Commissioner of Commercial Taxes Appeals - 3 Bangalore.
Disallowance of Margin on sub contract portion Security service and repair service Order Dated 19.10.2010 34.20 2009-2010 Joint Commissioner of Commercial tax (Appeals) Banglore
Inclusion of turnover of SEZ under Section 6 TNVAT and Stock Transfers Based on Sworn 407.85 Jan. 2007 to March 2008 Commercial Tax Officer Chennai
TNVAT Statement
Reversal of Input Tax Credit for SEZ projects Stock Transfers Unregistered Purchases and schedule rate variation in RMC Notice dated 28.11.2011 552.56 April 2008 to March 2010 Commercial Tax Officer Chennai
R VAT Tax is already discharged on receipt basis subsequent year but tax is levied based on WCT TDS Notice dated 26/03/2016 9.51 2008-2009 The Appellate Authority Commercial Taxes (Appeal)-1 Jaipur
Tax is already discharged on receipt basis subsequent year but tax is levied based on WCT TDS Notice dated 26/03/2016 8.38 2009-2010 The Appellate Authority Commercial Taxes (Appeal)-1 Jaipur
WB VAT The Sub Contractor expenditure is disallowed Notice dated 3/12/2015 160.6 2011-2012 The Joint Commissioner Commercial Taxes Alipore Charge Kolkata -700034
The expenditure is added back to turnover Assessment order date 29/06/2015 167.62 2012-2013 West Bengal Taxation TribunalSalt Lake Kolkata
Customs Duty Short payment of Customs Duty for import of Equipment on SCN 1908 dated 2.93 2008-2009 Directorate of Revenue Intelligence Mumbai
High Sea Sale 21.02.2013
Stay Order No.166 to 169/12 obtainted from CESTAT on 21/03/2012 8022.06 April 2006 - Sep. 2008 Customs Excise and
Service Tax CENVAT Credit on Capital Goods utilized in discharging Service Tax where Notification 1/2006 is availed Order-in- Original No. 64/2011 dt. 30/11/2011 1338.46 Oct. 2008 to Sep. 2009 Service Tax Appellate Tribunal (CESTAT) Chennai
Order -in- Original No. 19 & 20 /2013 dated 28/02/2013 462.41 Oct. 2009 to Sep. 2010
Order-in- Original No. 19 & 20 /2013 dated 28/02/2013 263.70 Oct. 2010 to Mar. 2011
SCN 227/2013 dt. 02.07.2013 170.58 April 2011 to March 2012 Commissioner of Service Tax Chennai
SCN No. 243/2014 dated 27/08/2014 19.67 April 2012 to June 2012 Joint Commissioner of Service Tax Service Tax Commissionerate Chennai
SCN No. 02/2015 dated 06/01/2015 21.15 July 2012 to March 2013 Joint Commissioner of Service Tax II Commissionerate Chennai
Service Tax demanded on Retention monies held by client as the same is yet to receive from Client by us Capital Order -in- Original No. 65/2011 dated 446.21 2008-2009 Customs Excise and
Goods used in SEZ Zone and Wrong availment of CVD in respect of 30/11/2011 Service Tax Appellate
'Schwing Boom Placer' and CENVAT Credit on Capital Goods utilized in discharge Order -in- Original No. 66/2011 dated 30/11/2011 394.74 2009-2010 Tribunal (CESTAT) Chennai
Order -in- Original No. 50 & 51 80.17 2010-2011
Service Tax demanded on Retention monies held by client as the same is yet to receive from Client by us Capital -13-14 dated Customs Excise and
Goods and Scaffolding Materials which are exclusively used in Airport 22/01/2014 Service Tax Appellate Tribunal (CESTAT) Chennai
Order -in- Original No. 50 & 51 -13-14 dated 22/01/2014 13.76 April 2011 to June 2011
Service Tax Service Tax on Works Contract Service provided to M/s. Bangalore Metropolitan Transport Corporation Bangalore SOD No. 237/2013 dated 10/07/2013 93.07 Sep 2011 to Sep 2012 Commissioner of Service Tax Chennai
SOD No. 29/2014 dated 09/12/2014 6.05 Oct 2012 to June 2014 Joint Commissioner of Service Tax II Commissionerate Chennai
Short Payment of Service Tax on Rebate Allowed by the Sub-Contractors SCN No. 174/2014 dated 23/07/2014 41.07 April 2011 to Sep 2012 Commissioner of Service Tax (Appeals-II) Service Tax Commissionerate Chennai
SOD No. 30/2014 dated 09/12/2014 20.20 Oct 2012 to Mar 2014 Commissioner of Service Tax (Appeals-II) Service Tax Commissionerate Chennai
O/o No.27/2013 dated 30/05/2013 & Appeal No.59/2013 dt. 16/08/2013 14.78 April 2011 to January 2012 Customs Excise and Service Tax Appellate Tribunal (CESTAT) Chennai
Levy of Excise Duty on manufacture of Ready Mix Concrete vide Notification O/o No.147/2013 dated 30/12/2013 & 1.02 February 2012 to March 2012 Customs Excise and Service Tax Appellate
Central Excise Act 1944 1/2011 dated 1.3.2011 for removal from a Batching plant located outside the Project location and used exclusively for the project. Appeal No.17/2014 (M-IV) dt. 03/03/2014 Tribunal (CESTAT) Chennai
O/o No.10/2013 dated 28/01/2013 (REFUND) & Appeal No.32/2013 (M-IV) dt. 26/04/2013 1.62 March 2011 Customs Excise and Service Tax Appellate Tribunal (CESTAT) Chennai
O/o No.02/2013 dated 21/02/2013 & Appeal No.31/2013 (M-IV) dt. 25/04/2013 3.96 July 2011 to March 2012 Customs Excise and Service Tax Appellate Tribunal (CESTAT) Chennai
O/o 10/2014 dated.30/05/2014 & Appeal No. 58/2014 (M-IV) dated 13/08/2014 25.05 April 2012 to March 2013 Customs Excise and Service Tax Appellate Tribunal (CESTAT) Chennai
Order-in- Appeal No. 204 dated 09/01/2014 4.39 2011-2012 Customs Excise and Service Tax Appellate Tribunal (CESTAT) Principal Bench New Delhi
SCN No. 66/2011-12/2273 dt 30.07.2013 4.59 Aug 2012- Dec 2012 Commissioner of Central Excise(Appeals) New Delhi
O/o No.MLR- EXCUS-000- UDDN-JTC-KDK- 029-14-15 dt. 23/07/2014 10.07 May 2011 to Jan- 2013 Commissioner of Customs and Central Excise (Appeals) Mysore
Central Excise Act 1944 Levy of Excise Duty on manufacture of Ready Mix Concrete vide Notification 1/2011 dated 1.3.2011 for removal from O-I-O No.09/ 2013-14 dt. 22/07/2013 13.61 Oct 2011 to July 2012 Commissioner of Customs and Central Excise (Appeals) Delhi
a Batching plant located outside the Project location and used exclusively for the project. SCN 843 dt. 09/04/2014 4.78 Jan 2013 to June 2013 The Assistant Commissioner of Central Excise Division - VI Nehru Place New Delhi
SCN 22/2014 dt. 28/04/2014 16.36 April 2013 to March 2014 Commissioner of Customs and Central Excise (Appeals) Chennai

** 50% paid balance through BG

*** Adjusted against the refund due

(viii) According to the records of theCompany examined by us and the information andexplanations given to us the Company has not defaulted in repayment of dues to FinancialInstitution or banks or debenture holders as at the balance sheet date.

(ix) According the information and explanations provided to us and examination ofthebooks of account Company has not raised any moneys by way of initial public offerorfurther public offer or the term loans except conversion of part of the debt into equityas per CDR package sanctioned. Accordingly reporting as to application of themoneys underclause (ix) of the Order is not applicable.

(x) According to the information and explanation provided to us there were no fraud bythe Company or any fraud on the Company by its officers or employees has been noticed orreported during the year;

(xi) According to the information and explanation provided and records of the companyexamined by us no managerial remuneration is paid or provided during the year; During theyear ended 31/3/2014 company had paid Rs.118 lakh excess remuneration to its whole timedirectors approval for which is pending from Central Government;

(xii) The Company is not a Nidhi Company;

(xiii) According to the information and explanation given to us all the transactionswith therelated parties are in compliance with section 177 and 188 of Companies Act2013where applicable and the details have been disclosed in the Financial Statementsasrequired by the applicable accounting standards

(xiv) The company has not made any preferential allotment or private placement ofsharesor fully or partly convertible debentures during the year under review.

(xv) According to the information and explanation given to us the company hasnotentered into any non-cash transactions with the directors or persons connected withhim.

(xvi) According to the information and explanation provided to us the Company is notaNon-Banking Financial Corporationand accordingly registration under section 45IAof theReserve Bank of India Act 1934 is not required.

For ASA & ASSOCIATES LLP
Firm Registration No: 009571N/N500006
Chartered Accountants
S Sundar Rajan
Place : Chennai Partner
Date : May 25 2016 Membership No:211414

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