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C & C Constructions Ltd.

BSE: 532813 Sector: Infrastructure
NSE: CANDC ISIN Code: INE874H01015
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OPEN 27.90
PREVIOUS CLOSE 26.60
VOLUME 48254
52-Week high 29.50
52-Week low 8.12
P/E
Mkt Cap.(Rs cr) 71.01
Buy Price 27.90
Buy Qty 110078.00
Sell Price 0.00
Sell Qty 0.00
OPEN 27.90
CLOSE 26.60
VOLUME 48254
52-Week high 29.50
52-Week low 8.12
P/E
Mkt Cap.(Rs cr) 71.01
Buy Price 27.90
Buy Qty 110078.00
Sell Price 0.00
Sell Qty 0.00

C & C Constructions Ltd. (CANDC) - Auditors Report

Company auditors report

To the Members of C&C Constructions Limited

1. Report on the Standalone Financial Statements

We have audited the accompanying financial statements of C&C ConstructionsLimited which comprises the Balance Sheet as at 31-Mar-2016 and the Statement ofProfit and Loss & cash flow for the year then ended and a summary of significantaccounting policies and other explanatory 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 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 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 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 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 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. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the standalonefinancial statements.

4. Opinion

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 31.03.2016 and its Loss & its cash flow for the year ended on that date.

5. Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 (the Order) issued by theCentral Government in terms of Section 143 (11) of the Act we give in the Annexure‘A' a statement on matters specified in paragraph 3 & 4 of the said order.

6. 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 and the Statement of Profit and Loss & cash flow dealt with bythis 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) In our opinion there are no observations or comments on the financial transactionswhich may have an adverse effect on the functioning of the Company.

f) On the basis of the written representations received from the directors as on31-Mar-2016 and taken on record by the Board of Directors we report that none of thedirectors is disqualified as on 31-Mar-2016 from being appointed as a director in terms ofsection 164(2) of the Act.

g) Report on the Internal Financial Controls under Clause (i) of Sub-section 3 ofSection 143 of the Companies Act 2013 ("the Act")- is enclosed asAnnexure‘B'to this report.

h) 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 - Refer Note. 32 to the financial statements:

ii.) The Company has a process whereby periodically all long term contracts [includingderivatives contracts] are assessed for material foreseeable losses. At the year end thecompany has reviewed and ensured that adequate provision as required under any law/accounting standards for material foreseeable losses on such long term contracts[including derivative contracts] has been made in the books of accounts.

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

For A S G & Associates
Chartered Accountants
FRN: 000389N
Amar Jeet Singh
Place: Gurgaon (Partner)
Dated: 09.06.2016 M. No.: 089285

ANNEXURE ‘A’ TO THE AUDITOR’S REPORT

The Annexure referred to in Independent Audotor’s report to the member of theCompany on the standalone Financial Statement for the year ended 31st March 2016. Wereport that :

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

b) As explained to us all the assets have not been physically verified by themanagement during the year but there is a regular programme of verification which in ouropinion is reasonable having regard to the size of the company and the nature of itsassets. No material discrepancies were noticed on such verification.

c) The title deeds of immoveable properties are held in the name of the company.

2. As explained to us the inventory has been physically verified at reasonableintervals during the year by the management. In our opinion the frequency of verificationis reasonable. The discrepancies noticed on verification between the physical stocks andthe book records have been properly dealt with in the books of accounts.

3. The company has granted loan to ten companies firms Limited Liability Partnershipsor other parties covered in the register maintained under section 189 of the Act.

a) The terms and conditions of the grant of such loans are not prejudicial to thecompany's interest.

b) No Schedule of repayment of principal has been stipulated and also there is nostipulation with regards to interest.

c) No Schedule of repayment of principal and payment of interest has been stipulatedand therefore the question of overdue amounts does not arise.

4. In respect of loans investments guarantees and security the provisions of section185 and 186 of the Companies Act 2013 have been complied with. The company had givenLoans& Advances to its associated companies before the enactment of the companiesAct2013 which is being recovered from them gradually.

5. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits in contravention of Directives issued by ReserveBank of India and the provisions of section 73 to 76 or any other relevant provisions ofthe Act and the rules framed there under where applicable . No order has been passed bythe Company Law Board or National Company Law Tribunal or Reserve Bank of India or anycourt or any other tribunal.

6. We have broadly reviewed the books of account maintained by the company pursuant tothe rules made by the Central Government of India regarding the maintenance of CostRecords under section 148(1) of the Companies Act 2013 and are of the opinion that primafacie the prescribed accounts and records have been maintained. We have however notmade a detailed examination of the records with the view to determine whether they areaccurate or complete.

7. a) According to the records of the company the company is generally regular indepositing with appropriate authorities undisputed statutory dues including providentfund investor education protection fund employees' state insurance income tax salestax wealth tax service tax custom duty excise duty Cess and other material statutorydues applicable to itthough there has been delay in few cases.

According to the information and explanations given to us undisputed amounts payablein respect of income tax wealth tax service tax sales tax custom duty excise duty andCess that were in arrears as at 31-Mar-2016 for a period of more than six months from thedate they became payable are given below.

Name of Authority Amount ( Rs in lacs)
SERVICE TAX 193.64
TDS/TCS PAYBLE 1022.27
Provident Fund 460.30
VAT/WCT 465.69

7. b) According to the information and explanations given to us the dues of sales taxincome tax custom duty wealth tax excise duty and Cess that have not been depositedwith appropriate authorities on account of any dispute and the forum where the disputesare pending are given below

Name of The Statute Nature of The Disputed Dues Amount (Rs in Lacs) Period To Which The Amount Relates Forum Where Dispute is Pending
U.P Trade Tax Act Demand against material purchased against ‘C form 35.26 (Amount deposited 12.34 lacs) F.Y-2002-03 Joint Commissioner (Appeals) Noida UP
Punjab Value Added Tax Act Non- production of sufficient documents of High Sea Sales 16.94 (Amount deposited NIL) F.Y-2007-08 Asst. Excise and Taxation Commissioner Information Collection Centre Shambhu (Import) Patiala-Punjab
Income Tax Department Demand against Short Deduction and interest subject to rectification. 48.22 (Amount deposited NIL) F Y. 2000-2001 Income Tax Officer (TDS) New Delhi
Income Tax Department Demand against Short Deduction and interest subject to rectification. 7.12 (Amount deposited NIL) F Y 2007-2008 Income Tax Officer (TDS) New Delhi
Income Tax Department Demand against Short Deduction and interest subject to rectification. 85.86 (Amount deposited NIL) F Y. 2008-2009 Income Tax Officer (TDS) New Delhi
Income Tax Department Demand against Short Deduction and interest subject to rectification. 11.28 (Amount deposited NIL) F Y. 2009-2010 Income Tax Officer (TDS) New Delhi
Income Tax Department Demand against Short Deduction and interest subject to rectification. 33.81 (Amount deposited NIL) F Y. 2010-2011 Deputy Commissioner of Income Tax Gurgaon

 

Name of The Statute Nature of The Disputed Dues Amount (Rs in Lacs) Period To Which The Amount Relates Forum Where Dispute is Pending
Income Tax Department Demand against Short Deduction and interest subject to rectification. 7.27 (Amount deposited NIL) F. Y. 2011-2012 Deputy Commissioner of Income Tax Gurgaon
Income Tax Department Demand against Short Deduction and interest subject to rectification. 170.58 (Amount deposited NIL) F. Y. 2012-2013 Deputy Commissioner of Income Tax Gurgaon
Income Tax Department Demand against Short Deduction and interest subject to rectification. 53.57 (Amount deposited NIL) F. Y. 2013-2014 Deputy Commissioner of Income Tax Gurgaon
Income Tax Department Demand against Short Deduction and interest subject to rectification. 46.78 (Amount deposited NIL) F. Y 2014-2015 Deputy Commissioner of Income Tax Gurgaon
Income Tax Department Demand against Short Deduction and interest subject to rectification. 0.89 (Amount deposited NIL) F. Y. 2015-2016 Deputy Commissioner of Income Tax Gurgaon
Service Tax Department Penalty under section 78 886.74 (Amount deposited NIL) F. Y. 2011-2014 Commissioner of Service Tax Gurgaon
Income Tax Department Demand against Short Deduction and interest subject to rectification. 73.12 (Amount deposited NIL) F. Y 2011-2012 Deputy Commissioner of Income Tax Gurgaon

Disputed Demands of Joint Ventures (Applicable share):

Name of The Statute Nature of The Disputed Dues Amount (Rs in Lacs) Period To Which The Amount Relates Forum Where Dispute is Pending
Commercial Tax Jaipur Rajasthan Demand against Penalty and Interest 17.20 (Amount deposited ‘NIL) F.Y-2005-06 Rajasthan Tax Board Jaipur
Income Tax Penalty under section 271(1)(c) 299. 86 (Amount deposited ‘NIL) F.Y-2006-2007 CIT Appeal New Delhi
Income Tax Penalty under section 271(1)(c) 145.92 (Amount deposited ‘NIL) F.Y-2008-2009 CIT Appeal New Delhi
Income Tax Department Demand against Short Deduction and interest subject to rectification. 3.28 (Amount deposited NIL) F. Y. 2007-2008 Income Tax Officer (TDS) New Delhi

 

Name of The Statute Nature of The Disputed Dues Amount (Rs in Lacs) Period To Which The Amount Relates Forum Where Dispute is Pending
Income Tax Department Demand against Short Deduction and interest subject to rectification. 3.29 (Amount deposited NIL) F. Y. 2008-2009 Income Tax Officer (TDS) New Delhi
Income Tax Department Demand against Short Deduction and interest subject to rectification. 7.71 (Amount deposited NIL) F. Y. 2009-2010 Income Tax Officer (TDS) New Delhi
Income Tax Department Demand against Short Deduction and interest subject to rectification. 0.40 (Amount deposited NIL) F. Y. 2010-2011 Income Tax Officer (TDS) New Delhi
Income Tax Department Demand against Short Deduction and interest subject to rectification. 4.72 (Amount deposited NIL) F. Y. 2011-2012 Income Tax Officer (TDS) New Delhi
Income Tax Department Demand against Short Deduction and interest subject to rectification. 33.14 (Amount deposited NIL) F. Y 2012-2013 Income Tax Officer (TDS) New Delhi
Income Tax Department Demand against Short Deduction and interest subject to rectification. 20.93 (Amount deposited NIL) F. Y 2013-2014 Income Tax Officer (TDS) New Delhi
Income Tax Department Demand against Short Deduction and interest subject to rectification. 3.93 (Amount deposited NIL) F. Y. 2014-2015 Income Tax Officer (TDS) New Delhi
Income Tax Department Demand against Short Deduction and interest subject to rectification. 0.05 (Amount deposited NIL) F. Y. 2015-2016 Income Tax Officer (TDS) New Delhi
Income Tax Department Disallowance of Additional Depreciation 289.15 (Amount deposited 289.15) F. Y. 2003-2004 High Court New Delhi
Income Tax Department Disallowance of Additional Depreciation 321.45 (Amount deposited 321.45) F. Y. 2005-2006 ITAT New Delhi
Income Tax Department Disallowance of Additional Depreciation 439.48 (Amount deposited 439.48) F. Y. 2006-2007 ITAT New Delhi
Income Tax Department Disallowance of Additional Depreciation 157.03 (Amount deposited 157.03) F. Y. 2007-2008 ITAT New Delhi
Income Tax Department Disallowance of Additional Depreciation 309.81 (Amount deposited 309.81) F. Y. 2008-2009 High Court New Delhi

 

Name of The Statute Nature of The Disputed Dues Amount (Rs in Lacs) Period To Which The Amount Relates Forum Where Dispute is Pending
Income Tax Department Disallowance of TDS Credit on Account of Mobilisation 15.33 (Amount deposited 15.33) F. Y. 2009-2010 ACIT Circle 62(1) New Delhi
Income Tax Department Disallowance of TDS Credit on Account of Mobilisation 19.70 (Amount deposited 19.70) F. Y. 2010-2011 ACIT Circle 62(1) New Delhi
Income Tax Department Disallowance of TDS Credit on Account of Mobilisation 216.90 (Amount deposited NIL) F. Y 2011-2012 ACIT Circle 62(1) New Delhi

 

Name of The Statute Nature of The Disputed Dues Amount (Rs in Lacs) Period To Which The Amount Relates Forum Where Dispute is Pending
Income Tax Department Disallowance u/s 40(a)(ii) 40(a) (ia) disallowance of depreciation of tipper and disallowance of TDS credit on account of Mobilisation 372.65 (Amount deposited NIL) F. Y. 2012-2013 CIT Circle 62(1) New Delhi
Income Tax Department Penalty u/s 271(1)(c) 2.18 (Amount deposited NIL) F. Y 2010-2011 CIT Appeal New Delhi

8. Based on our audit procedures and according to the information and explanationsgiven to us we are of the opinion the company has defaulted in repayment of dues to afinancial institution bank Government or dues to debenture holders. The detail of periodand the amount of default as ascertained by the management is as follows: -

Details of Continuing defaults in repayment of secured Term loan from bank and otherunder CDR:

FROM BANK

FITL (Amount in Rs)
Name of Bank Principal Amount Interest Accrued and Due Total Amount Overdue period to Which it relates
State Bank of India 95470250 80087125 175557375 Apr'14 to March'16
State Bank of Hyderabad - 2274818 2274818 Jan. Feb. March 2016
Indusland Bank - 1104371 1104371 Jan. Feb. March 2016
ICICI Bank - 641706 641706 Jan. Feb. March 2016
Axis Bank - 1167433 1167433 Feb. March 2016
Oriental Bank of Commerce 14114750 13423167 27537917 Apr'14 to March'16
Central Bank of India 25300000 28430948 53730948 July'14 to March'16
State Bank of Patiala - 4461257 4461257 Jan. Feb. March 2016
TOTAL 134885000 131590825 266475825

 

WCTL (Amount in Rs)
Name of Bank Principal Amount Interest Accrued and Due Total Amount Overdue period to Which it relates
State Bank of India 223425000 336855377 560280377 Apr'14 to March'16
State Bank of Patiala - 23970149 23970149 Jan. Feb. March 2016
State Bank of Hyderabad - 13262156 13262156 Jan. Feb. March 2016
IndusInd Bank - 5221492 5221492 Jan. Feb. March 2016
ICICI Bank - 3675046 3675046 Jan. Feb. March 2016
Axis Bank - 5611534 5611534 Feb. March 2016
IDBI - 467724 467724 March 2016
Oriental Bank of Commerce 35655000 61129314 96784314 Apr'14 to March'16
Central Bank of India 46189500 88522211 134711711 Apr'14 to March'16
TOTAL 305269500 538715004 843984504

CTL

Name of Bank Principal Amount Interest Accrued and Due Total Amount Overdue period to Which it relates
State Bank of Hyderabad - 1435489 1435489 Jan. Feb. March 2016
MTL (Amount in Rs)
Name of Bank Principal Amount Interest Accrued and Due Total Amount Overdue period to Which it relates
State Bank of Patiala - 1975199 1975199 Jan. Feb. March 2016
FROM OTHERS
FITL (Amount in Rs)
Name of Bank Principal Amount Interest Accrued and Due Total Amount Overdue period to Which it relates
Bajaj Infrastructure Ltd 18895893 16206502 35102395 June 2014 Qtr to March 2016 Qtr
Srei Equipment 548155 422939 971094 March Qtr 2016
L&T Infra Finance Ltd. 41593779 32224574 73818353 March 2015 Qtr to March 2016 QTR
TOTAL 61037827 48854015 109891842
CTL (Amount in Rs)
Name of Bank Principal Amount Interest Accrued and Due Total Amount Overdue period to Which it relates
Bajaj Infrastructure Ltd 75000000 124654182 199654182 Sept 2014 Qtr to March 2016 Qtr
L&T Infra Finance Ltd. 132692003 244564916 377256919 March 2015 Qtr to March 2016 QTR
Srei Equipment - 15430596 15430596
TOTAL 207692003 384649694 592341697

Details of continuing defaults in repayment of Secured Term Loans for Machinery &Vehicles from Banks under Non-CDR Scheme:

(Amount in Rs)
Name of Bank Principal Amount Interest Accrued and Due Total Amount Overdue period to Which it relates
ICICI Bank 262780 20496 283276 March 2016
Dhanlaxmi Bank 1830927 93873 1924800 Aug 2015 to Jan 2016
ICICI Bank 566629 6040 572669 Aug 2015 to Jan 2016
Dhanlaxmi Bank 2151424 87119 2238543 March 2016
TOTAL 4811760 207528 5019288

Details of continuing defaults in repayment of Secured Term Loans for Machinery &Vehicles from Others under Non-CDR Scheme

(Amount in Rs)
Name of Bank Principal Amount Interest Accrued and Due Total Amount Overdue period to Which it relates
Reliance Capital Ltd 137589 8583 146172 Feb 2015 to Feb 2016
Reliance Capital Ltd 304031 28879 332910 Jan 2015 to March 2016
L&T Finance Ltd 168001 5074 173075 Dec 2014 to Apr 2015
Magma Fincorp Ltd 38517 5983 44500 Feb & March 2016
Tata Capital Ltd 220068 14232 234300 Jan 2016 to March 2016
Hinduja Leyland Finance Ltd 1989296 38817 2028112 Oct 2015 to Jan 2016
L&T Finance Ltd 2584231 407741 2991972 March 2016
Reliance Capital Ltd 149701 3457 153158 Feb 2016 & March 2016
Reliance Capital Ltd 96726 3148 99873 Feb 2016 & March 2016
Reliance Capital Ltd 24216 2234 26450 Feb 2016 & March 2016
SREI equipment Finance Pvt Ltd 157215767 24606714 181822481 Oct 2015 to March 2016
SREI equipment Finance Pvt Ltd 1930206 338511 2268717 Jan Feb & March 2016
Total 164858347 25463373 190321719

Detail of continuing defaults in repayment of interest on Demand Loans from Banks

Name of Bank Interest Overdue Overdue Period
DBS Bank Ltd 143439408 Jun ‘12 to March ‘16
Barclays Bank 47682982 Jun ‘12 to March ‘16
Standard Chartered Bank 1756323 March ‘16
TOTAL 192878713

INTREST ON CC/OD

Name of Financer Overdue Interest Total Amount overdue Overdue Period
State Bank of India 257830483 257830483 Jul'14 to March'16
Central Bank of India 61437499 61437499 Oct'14 to March'16
TOTAL 319267982 319267982

9. The company has not raised moneys by way of initial public offer or further publicoffer (including debt instrument). However the moneys were raised by way of term loanswhich were applied for the purposes for which those were raised.

10. Based upon the audit procedures performed and according to the information andexplanations given to us no fraud by the company or any fraud on the company by itsofficers or employees has been noticed or reported during the course of our audit thatcauses the financial statements to be materially misstated.

11. We were explained that in view of the losses suffered by the company no managerialremuneration has been paid or provided for.

12. The company is not a Nidhi Company hence this clause is not applicable.

13. Based upon the audit procedures performed and according to the information andexplanations given to us all transactions with related parties are in compliance withsections 177 and 188 of Companies Act 2013 wherever applicable and the details havebeen disclosed in the Financial statements etc. as required by the applicable accountingstandards.

14. The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review.

15. The company has not entered into any non-cash transactions with directors orpersons connected with him.

16. The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For A S G & Associates
Chartered Accountants
FRN: 000389N
Amar Jeet Singh
Place: Gurgaon (Partner]
Dated: 09.06.2016 M. No.: 089285

ANNEXURE ‘B’ TO THE AUDITOR’S REPORT

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

We have audited the internal financial controls over financial reporting of (TheCompany') as of 31-Mar-2016 in conjunction with our audit of the standalone financialstatements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls. These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information 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 168 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence I/we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.

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 withauthorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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 inconditions 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 31-Mar-2016.

For A S G & Associates
Chartered Accountants
FRN: 000389N
Amar Jeet Singh
Place : Gurgaon (Partner)
Dated : 09.06.2016 M. No.: 089285