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C & C Constructions Ltd.

BSE: 532813 Sector: Infrastructure
NSE: CANDC ISIN Code: INE874H01015
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VOLUME 38904
52-Week high 29.50
52-Week low 8.12
P/E
Mkt Cap.(Rs cr) 43.14
Buy Price 0.00
Buy Qty 0.00
Sell Price 16.45
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OPEN 17.00
CLOSE 17.60
VOLUME 38904
52-Week high 29.50
52-Week low 8.12
P/E
Mkt Cap.(Rs cr) 43.14
Buy Price 0.00
Buy Qty 0.00
Sell Price 16.45
Sell Qty 150.00

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

Company auditors report

To The Members of C&C Constructions Limited

REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying financial statements of C&C ConstructionsLimited (the Company) which comprise the Balance Sheet as at June 30 2015 theStatement of Profit and Loss and Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.

MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

The Company’s Board of Directors is responsible for the matters stated insub-section 5 of section 134 of the Companies Act 2013 ("the Act") with respectto the preparation and presentation of these financial statements that give a true andfair view of the financial position and financial performance and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Accounting Standards specified under section 133 of the Act read with Rule7 of the Companies (Accounts) Rules 2014. This responsibility also includes maintenanceof adequate accounting records in accordance with the provisions of the Act forsafeguarding the assets of the company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.

AUDITORS’ RESPONSIBILITY

Our responsibility is to express an opinion on these financial statements based on ouraudit. 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 have conducted the audit in accordance with the Standards on Auditing specifiedunder sub-section 10 of Section 143 of the Act. Those Standards require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether the 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 but not for the purpose ofexpressing an opinion on whether the company has in place an adequate internal financialcontrol system over financial reporting and the operating effectiveness of such controls.

An audit also includes evaluating the appropriateness of accounting policies used andthe reasonableness of the accounting estimates made by the Company’s Directors aswell as evaluating the overall 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 the financial statements.

OPINION

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 30thJune 2015 and its loss and its cash flows for the year ended on that date.

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 exercise of powers conferred bysub-section 11 of section 143 of the Act we enclose in the Annexure a statement on thematters specified in paragraphs 3 and 4 of the Order.

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 Cash Flow Statement dealtwith 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.

(e) On the basis of the written representations received from the directors as on 30thJune 2015 taken on record by the Board of Directors none of the directors isdisqualified as on 30th June 2015 from being appointed as a director in terms of Section164 (2) of the Act; and

(f) 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[includingderivative contracts] has been made in the books of accounts.

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

For A S G & Associates
Chartered Accountants
FRN: 000389N
Amar Jeet Singh
Place: Gurgaon (Partner)
Dated: 28.08.2015 M. No.: 089285

ANNEXURE TO THE AUDITORS’ REPORT

(Referred to in paragraph 1 under the heading ‘Report on Other Legal andRegulatory Requirements’ of our Report of even date on the financial statements forthe year ended on June 30th 2015 of C&C Constructions Limited.)

(i) (a) In our opinion the Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

(b) The fixed assets have been physically verified by the management at reasonableintervals. No material discrepancies with respect to book records were noticed on suchverification.

(ii) (a) As explained to us physical verification of inventory except material intransit has been conducted by the management at reasonable intervals. In our opinion thefrequency of verification is reasonable.

(b) In our opinion the procedures of physical verification of inventory followed bythe management are reasonable and adequate in relation to the size of the Company andnature of its business.

(c) On the basis of examination of records of the inventory we are of the opinion thatthe company is maintaining proper records of inventory. The discrepancies noticed onverification between the physical stocks and books records were not material.

(iii) (a) The Company has granted unsecured loans to Companies firms and other partiescovered in the register maintained under section189 of the Companies Act 2013;

(b) There is no stipulation with regard to rate of interest and the amount is repayableon demand hence no regular repayment of loan has been made.

(c) Since the amount is payable on demand no amount is still overdue.

(iv) In our opinion and according to the information and explanation given to us thereare adequate internal control procedures commensurate with the size of the Company and thenature of its business with regard to purchase of inventory and fixed assets and for thesale of goods. During the course of our audit no major weakness has been noticed in theinternal controls.

(v) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from public under the provisions of sections 73 to76 of the Companies Act 2013 or any other relevant provisions of the Act and the rulesframed thereunder.

(vi) We have broadly reviewed the books of account maintained by the company pursuantto the 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 not madea detailed examination of the records with the view to determine whether they are accurateor complete.

(vii) In respect of statutory dues :

(a) According to the records of the Company undisputed statutory dues includingProvident Fund Employees’ State Insurance Income-tax Sales-tax Wealth-taxService-tax duty of Customs duty of Excise Value Added Tax Cess Investor Educationand Protection Fund Income-Tax Cess and other statutory dues have been depositedregularly with the appropriate authority during the year though there has been delay infew cases. According to the information and explanations given to us undisputed amountspayable in respect of the aforesaid dues were outstanding as on 30th June 2015 for aperiod of more than six months from the date they became payable as under:

Name of Authority Amount (Rs. in lacs)
TDS 701.84
Provident Fund 288.16
VAT/WCT 304.03
Labour Cess 170.64
Dividend Tax 113.59

(b) According to information and explanations given to us the particulars of duesoutstanding of Income Tax Sales Tax Wealth Tax Service Tax Duty of Customs Duty ofExcise Value Added Tax or Cess and other statutory dues as on 30th June 2015 which havenot been deposited on account of disputes pending are as under:

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 Act Demand against short deduction/ short payment other than salary 113.46 (Amount deposited Rs. NIL) AY- 2011-12 Deputy Commissioner of Income Tax CPC – TDS Vashali Ghaziabad (U.P.)
Income Tax Act Demand against short deduction/ short payment salary 17.00 (Amount deposited Rs. NIL) AY- 2011-12 Deputy Commissioner of Income Tax CPC – TDS Vashali Ghaziabad (U.P.)
Income Tax Act Demand against short deduction/ short payment salary 67.40 (Amount deposited Rs. NIL) AY- 2012-13 Deputy Commissioner of Income Tax CPC – TDS Vashali Ghaziabad (U.P.)
Income Tax Act Demand against short deduction/ short payment other than salary 291.24 (Amount deposited Rs. NIL) AY- 2012-13 Deputy Commissioner of Income Tax CPC – TDS Vashali Ghaziabad (U.P.)
Income Tax Act Demand against short deduction/ short payment other than salary 0.03 (Amount deposited Rs. NIL) AY- 2012-13 Deputy Commissioner of Income Tax CPC – TDS Vashali Ghaziabad (U.P.)
Income Tax Act Demand against short deduction/ short payment salary 36.96 (Amount deposited Rs. NIL) AY- 2013-14 Deputy Commissioner of Income Tax CPC – TDS Vashali Ghaziabad (U.P.)
Income Tax Act Demand against short deduction/ short payment other than salary 1.23 (Amount deposited Rs. NIL) A.Y. 2014-15 Deputy Commissioner of Income Tax CPC – TDS Vashali Ghaziabad (U.P.)
Income Tax Act Demand against short deduction/ short payment salary 31.21 (Amount deposited Rs. 1.47) AY- 2014-15 Deputy Commissioner of Income Tax CPC – TDS Vashali Ghaziabad (U.P.)
Income Tax Act Demand against short deduction/ short payment other than salary 0.92 (Amount deposited Rs. 28.23) AY- 2015-16 Deputy Commissioner of Income Tax CPC – TDS Vashali Ghaziabad (U.P.)
Income Tax Act Short interest charged u/s 234B Appeal filed to CIT (Appeal) Dated:08.01.2014 34.24 (Amount deposited Rs. NIL) AY- 2009-10 CIT(Appeals) Central Gurgaon.
Income Tax Act Excess interest refund u/s 244A Appeal filed to CIT (Appeal) Dated:08.01.2014 28.23 (Amount deposited Rs. NIL) AY- 2008-09 CIT(Appeals) Central Gurgaon.
Income Tax Act Excess interest refund u/s 244A Appeal filed to CIT (Appeal) Dated:08.01.2014 1.47 (Amount deposited Rs. NIL) AY- 2006-07 CIT(Appeals) Central Gurgaon.
U.P Trade Tax Act Demand against material purchased against ‘C’ form 35.26 (Amount deposited Rs.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 Rs. NIL) F.Y-2007-08 Asst. Excise and Taxation Commissioner Information Collection Centre Shambhu (Import) Patiala-Punjab
Service Tax Penalties for failure to make payment of Service Tax 886.74 (Amount deposited Rs. NIL) F.Y.- 2011-14 Appeal against CESTAT is still under process
Income Tax Act Demand against short deduction/ short payment of TDS other than salary 121.79 (Amount deposited Rs. NIL) AY- 2013-14 Deputy Commissioner of Income Tax CPC – TDS Vashali Ghaziabad (U.P.)
Income Tax Act Demand against short deduction/ short payment of TDS on salary 1.21 (Amount deposited Rs. NIL) AY- 2012-13 Deputy Commissioner of Income Tax CPC – TDS Vashali Ghaziabad (U.P.)
Income Tax Act Demand against short deduction/ short payment of TDS on other than salary 1.66 (Amount deposited Rs. NIL) AY-2012-13 Deputy Commissioner of Income Tax CPC – TDS Vashali Ghaziabad (U.P.)
Income Tax Act Demand against short deduction/ short payment of TDS on salary 1.46 (Amount deposited Rs. NIL) AY- 2013-14 Deputy Commissioner of Income Tax CPC – TDS Vashali Ghaziabad (U.P.)
Income Tax Act Demand against short deduction/ short payment of TDS on other than salary 16.80 (Amount deposited Rs. NIL) AY- 2013-14 Deputy Commissioner of Income Tax CPC – TDS Vashali Ghaziabad (U.P.)
Income Tax Act Demand against short deduction/ short payment of TDS on salary 2.59 (Amount deposited Rs. NIL) AY- 2014-15 High Court of Delhi New Delhi
Income Tax Act Demand against short deduction/ short payment of TDS on other than salary 17.11 (Amount deposited Rs. NIL) AY- 2014-15 CIT(Appeals) - XXVIII New Delhi
Income Tax Act Demand against short deduction/ short payment of TDS on other than salary 0.67 (Amount deposited Rs. NIL) AY- 2015-16 CIT(Appeals) - XXVIII New Delhi
Income Tax Act Disallowance of Additional Depreciation 274.76 (Amount deposited Rs. 274.76) AY- 2004-05 CIT(Appeals) - XXVIII New Delhi
Income Tax Act Disallowance of Additional Depreciation 1.59 (Amount deposited Rs. NIL) AY – 2005-06 CIT(Appeals) - XXVIII New Delhi
Income Tax Act Disallowance of Additional Depreciation 242.51 (Amount deposited Rs. 242.51) AY – 2006-07 CIT(Appeals) - XXVIII New Delhi
Income Tax Act Disallowance of Additional Depreciation 439.48 (Amount deposited Rs. 439.48) AY – 2007-08 CIT(Appeals) - XXVIII New Delhi
Income Tax Act Disallowance of Additional Depreciation 123.13 (Amount deposited Rs. 123.13) AY – 2008-09 CIT(Appeals) - XXVIII New Delhi
Income Tax Act Disallowance of Additional Depreciation 309.81 (Amount deposited Rs. 309.81) AY – 2009-10 CIT(Appeals) - XXVIII New Delhi
Income Tax Act Disallowance of Additional Depreciation 265.33 (Amount deposited Rs. NIL) AY – 2010-11 CIT(Appeals) - XXVIII New Delhi
Income Tax Act Disallowance of Additional Depreciation 19.71 (Amount deposited Rs. NIL) AY – 2011-12 CIT(Appeals) - XXVIII New Delhi
Income Tax Act Disallowance of Additional Depreciation 216.90 (Amount deposited Rs. NIL) AY – 2012-13 CIT(Appeals) - XXVIII New Delhi
Rajasthan Value Added Tax Act Penalty against tax 8.60 (Amount deposited Rs. 1.33) FY 2005-2006 Joint Commissioner (Appeal) Jaipur Rajasthan

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the amount required to be transferred toInvestor Education and Protection Fund in accordance with the relevant provisions of theCompanies Act 1956 [1 of 1956] and rules made thereunder has been transferred to suchfund within time.

(viii) The company has accumulated losses amounting to

Rs. 30518.27 Lacs at the end of the financial year and it hasincurred cash lossesamounting to Rs. 13393.33 Lacs in the current financial year covered by our audit and Rs.1932.66 Lacs in the financial year immediately preceding financial year.

(ix) Based on our audit procedures and according to the information and explanationgiven to us the company has defaulted in repayment of dues to financial institutions orbanks as at the balance sheet date as under:

(a) The company has defaulted in the repayment of Secured Term Loan in Principal andInterest from Banks under CDR

Scheme as detailed below:

FITL (Amount in Rs.)
Name of Financer Principal Overdue Interest Total Overdue period
State Bank of India 48209250.01 50027116.60 98236366.61 April’14 to June’15
State Bank of Hyderabad - 824581.00 824581.00 June’15
Indusind Bank - 1138874.00 1138874.00 June’15
ICICI Bank - 234663.00 234663.00 June’15
Axis Bank - 2066651.00 2066651.00 April May June
Oriental Bank of Commerce 7128750.00 8004894.30 15133644.30 April’14 to June’15
Central Bank of India 11550000.00 16315141.87 27865141.87 April’14 to June’15
IDBI - - - July’14 to June’15
Total 66888000.01 78611921.77 145499921.78

 

WCTL (Amount in Rs.)
Name of Financer Principal Overdue Interest Total Overdue period
State Bank of India 134055000.00 210393569.43 344448569.43 April’14 to June’15
State Bank of Patiala - 24552195.88 24552195.88 April May June
State Bank of Hyderabad - 4467500.00 4467500.00 June
Indusind Bank - 5019881.00 5019881.00 April May June
ICICI Bank - 1258605.89 1258605.89 June
Axis Bank - 9092517.00 9092517.00 April May June
IDBI - 1508156.00 1508156.00 April May June
Oriental Bank of Commerce 21393000.00 36375050.00 57768050.00 April’14 to June’15
Central Bank of India 19795500.00 50616401.52 70411901.52 July’14 to June’15
Total 175243500.00 343283876.72 518527376.72

 

MTL (Amount in Rs.)
Name of Financer Principal Overdue Interest Total Overdue period
State Bank of Patiala - 2023574.00 2023574.00 April May June

 

CTL (Amount in Rs.)
Name of Financer Principal Overdue Interest Total Overdue period
State Bank of Hyderabad - 487758.00 487758.00 June

(b) The company has defaulted in the repayment of Secured Term Loan in Principaland Interest from Others under CDR Scheme as detailed below:

MTL (Amount in Rs.)
Name of Financer Principal Overdue Interest Total Overdue period
Srei Equipment - 9764613.00 9764613.00 April to June

 

FITL (Amount in Rs.)
Name of Financer Principal Overdue Interest Total Overdue period
Bajaj Infrastructure Ltd 10306850.23 10637789.00 20944639.23 Feb’14 to June’15
Srei Equipment 426343.00 281147.00 707490.00 April to June
L&T Infra Finance Ltd 14931099.00 20788460.00 35719559.00 July’14 to June’15
TOTAL 25664292.23 31707396.00 57371688.23

 

CTL (Amount in Rs.)
Name of Financer Principal Overdue Interest Total Overdue period
Bajaj Infrastructure Ltd 45000000.00 81792429.00 126792429.00 Jan’14 to June’15
L&T Infra Finance Ltd 46564002.00 156723524.00 203287526.00 July’14 to June’15
Total 91564002.00 238515953.00 330079955.00

(c) The company has defaulted in the repayment of Secured Term Loan in Principaland Interest from Banks under Non - CDR Scheme as detailed below:

(Amount in Rs.)
Name of Financer Principal Interest Total Amount overdue Overdue Period
ICICI Bank 9369.65 2062.35 11432.00 June’15
Dhanlaxmi Bank 2841162.50 202909.00 3044071.50 Apr’15 to June’15
Indusind Bank 196736.00 2051.00 198787.00 April’15
Indusind Bank 2170303.60 112996.40 2283300.00 April’15 to June’15
Total 5217571.75 320018.75 5537590.50

(d) The company has defaulted in the repayment of Secured Term Loan in Principaland Interest from Others under Non - CDR Scheme as detailed below:

(Amount in Rs.)
Name of Financer Principal Interest Total Amount overdue Overdue Period
Reliance Capital Ltd 61053.26 6430.74 67484.00 Jan’15 to June’15
Reliance Capital Ltd 329273.00 56922.00 386195.00 Jan’15 to June’15
Reliance Capital Ltd 22055.50 4394.50 26450.00 May’15 to June’15
L&T Finance Ltd 168001.00 5074.00 173075.00 Dec’14 to June’15
L&T Finance Ltd 2334975.50 656996.00 2991971.50 June’15
Magma Fincorp Ltd 2534885.00 62352.00 2597237.00 Mar’15 to June’15
Magma Fincorp Ltd 1543566.79 155023.22 1698590.00 April’15 to June’15
Magma Fincorp Ltd 509252.13 29249.88 538502.00 May’15 June’15
Magma Fincorp Ltd 101335.55 11644.45 112980.00 Jan’15 to June’15
SREI equipment Finance Pvt Ltd 1993620.00 275097.00 2268717.00 April’15 to june’15
SREI equipment Finance Pvt Ltd 85290612.50 18873748.50 104164361.00 April’15 to June’15
Tata Capital Ltd 299317.00 13433.00 312750.00 April’15 to June’15
Hinduja Leyland Finance Ltd 1395295.50 125788.50 1521084.00 April’15 to June’15
Total 11292630.22

(e) The company has defaulted in the repayment of Secured Demand Loans from Banksas detailed below:

(Amount in Rs.)
Name of Financer Interest Overdue Overdue Period
DBS Bank Ltd. 115185983.05 Jun’ 12 to Jun’ 14
Barclays Bank 39124079.00 Jun’ 12 to Jun’ 14
Standard Chartered Bank 1756323.02 June 14
Total 156066385.07

(f) The company has defaulted in the repayment of Interest onCash Credit/ OverDraft from Banks as detailed below:

(Amount in Rs.)
Name of Financer Principal Interest Total Amount overdue Overdue Period
State Bank Of India - 146728134.00 146728134.00 Jun’ 14 to Jun’ 15
Central Bank Of India - 30618808.00 30618808.00 Oct’ 14 to Jun’ 15
- 177346942 177346942

(x) The Company has guaranteed and undertaken to the lenders of its following SPCs(Special Purpose Companies) to cover shortfall in repayment of the loan amount of interestin case of termination of Concession Agreement due to any event of default during thecurrency of the loan:

• BSC-C&C Kurali Toll Road Ltd.

• C&C Towers Ltd.

• MokamaMunger Highway Ltd

• North Bihar Highway Ltd.

• Patna Bakhtiyarpur Ltd.

The term and conditions of guarantees given are not prejudicial to the interest of thecompany.

(xi) In our opinion the term loans have been applied for the purposes for whichthey were obtained.

(xii) Based on the audit procedures performed and information and explanationsgiven by the management we report that no fraud on or by the Company has been noticed orreported during the year.

For A S G & Associates
Chartered Accountants
FRN: 000389N
Amar Jeet Singh
Place: Gurgaon (Partner)
Dated: 28.08.2015 M. No.: 089285

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