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Era Infra Engineering Ltd.

BSE: 530323 Sector: Infrastructure
NSE: ERAINFRA ISIN Code: INE039E01020
BSE 15:22 | 12 Sep Era Infra Engineering Ltd
NSE 11:44 | 12 Sep Era Infra Engineering Ltd
OPEN 1.43
PREVIOUS CLOSE 1.50
VOLUME 170170
52-Week high 1.50
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 47
Buy Price 0.00
Buy Qty 0.00
Sell Price 1.43
Sell Qty 51200.00
OPEN 1.43
CLOSE 1.50
VOLUME 170170
52-Week high 1.50
52-Week low 0.00
P/E
Mkt Cap.(Rs cr) 47
Buy Price 0.00
Buy Qty 0.00
Sell Price 1.43
Sell Qty 51200.00

Era Infra Engineering Ltd. (ERAINFRA) - Auditors Report

Company auditors report

To The Members of ERA Infra Engineering Limited Report on the Standalone Ind ASFinancial Statements

We have audited the accompanying standalone Ind AS financial statements of ERA InfraEngineering Limited ('the Company') which comprises the balance sheet as at 31stMarch 2017 the statement of profit and loss (including other comprehensive income) thestatement of cash flows and the statement of changes in equity for the year then ended anda summary of the significant accounting policies and other explanatory information (hereinafter referred to as "standalone Ind AS financial statements").

Management's Responsibility for the Standalone Ind AS 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 Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) prescribedunder section 133 of the Act read with relevant rules issued thereunder.

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 standalone Ind AS financial statements that give a true and fair view and are freefrom material misstatements whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standaloneInd AS financialstatements based 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 of the standalone Ind AS financial statements in accordance withthe Standards on Auditing specified under section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the standalone Ind AS financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the standalone Ind AS financial statements. The procedures selected dependon the auditor's judgment including the assessment of the risks of the materialmisstatement of the standalone Ind AS financial statements whether due to error or fraud.In making those risk assessments the auditor considers internal control relevant to theCompany's preparation of the standalone Ind AS financial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstances.An audit also includes evaluating the appropriateness of accounting policies used andreasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the standaloneInd AS financial statements.

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

Basis for Qualified opinion

We believe that our audit provided a reasonable basis for in continuations of our qualifiedopinion which was reported in the year ended 31st March 2016 & earlierquarter of 2016-17 which has been elaborated below. Besides our audit report for the yearended 31st March 2017 our qualified opinion is also based on the auditor'sreport on the audited annual financial statements for the year ended 31stMarch 2015 by the preceding auditors of the company.

1. Based on Indian Accounting Standards (Ind AS-1) and Standards of Auditing (SA) 570'Going Concern' issued by the Institute of Chartered Accountants read with section 143 ofthe Companies Act 2013 non-disclosure of material uncertainties related to event andcondition may cast significant doubt upon the entity' s ability to continue as a goingconcern. The major indicators of material uncertainties are as mentioned therein andlisted here are as;

2. as per note 45 of the standalone Ind AS financial statements regarding the Companyhas been incurring losses over past several quarters/years due to which the entire networth of the Company had been eroded as reported in March 2016. The accumulated losses ofRs. 284089.05 Lakhs are more than the entire net-worth as on 31.03.2017;

3. as per note 33of the standalone Ind AS financial statements regarding the Company iscontesting material litigations against it including winding up petitions and mattersunder section 138 of the Negotiable Instruments Act 1881 as amended thereto;

4. as per note 42(a) of the standalone Ind AS financial statements regarding tradereceivables out of the total trade receivables of Rs.310961.38 Lakhs as on 31.03.2017Rs.143145.61 Lakhs are outstanding from the period prior to 01.04.2014;

a. These are slow moving as partly received or non-moving as no movement due to delayin obtaining confirmation and subsequent reconciliation. In some cases invoices raised bythe Company are to be recognised by these customers which includes joint venturesassociates and other related parties considering the non-recoverability since long theseneeds to be impaired.

b. The management is of the opinion that as the Company has

(i) identified many cases during the year& have already started process of invokingthe arbitration and shortly expect to file in all the identified cases.

(ii) undertaken confirmation and reconciliation process along with of its dues/claimsin other than arbitration cases.

(iii) been continuously updating the documentation it is not appropriate to make anyprovision at this point of time which may dilute the recovery of these receivables.Provisions in the books of accounts will be made at the time of finalization of matters;

5. as per note 42(b)of the standalone Ind AS financial statements out of the total'Other short term loans & advances' of Rs. 112281.18Lakhs as on 31.03.2017 (excludingclaims for invocation of Bank Guarantee) and in most of the cases the balances areoutstanding from the period prior to 01.04.2014. Based on updated document regarding theterms & conditions and written confirmation it cannot be ascertained whether theamounts will be recovered or goods & services will be received in future consideringthe non-recoverability or material against these advances since long.

Since these are quite old advances the management is of the view that ongoingconfirmation and reconciliation process is under progress and management is reviewing andwill impair on getting finality and shall make further provision only on completion of theprocess including as provided under the applicable laws.Considering the non-recoverabilityor material against these advances since long these should be impaired.

6. as per note 46 of the standaloneInd AS financial statements and as mentioned abovein paragraph 5 a claim of Rs. 26496.63 lakhs pertains to invocation of Performance andother Bank Guarantees are receivable due to noncompliance of terms & conditions of thecontract. The management has initiated the legal process for recovery of the said claim;

7. as per note 42(c) of the standalone Ind AS financial statements a sum of Rs.16895.72Lakhs as on 31st March 2017under Capital advances is outstanding since long.The management has initiated the process of recovery of the amount of loans & advancesor receipt of goods & services there - against. Due to non - recovery and non-receiptof material against these needs to be impaired;

8. as per note 52of the standaloneInd AS financial statements regarding the company isdeveloping a program for physical verification of work -in progress of Rs. 60593.13Lakhsrecognised in books as on 31.03.2017. On completion of physical verification & postreconciliation with the records discrepancies will be adjusted. For raw material &other inventory management has completed the physical verification is under process ofreconciling as explained and based on reconciliation the difference and discrepancies havebeen adjusted;

9. as per note 51of the standaloneInd AS financial statements regarding the Company hasmade investments in securities non - current & current of / through itssubsidiaries associates Joint ventures & group companies. In case of two associatesGwalior bypass projects limited & Hyderabad Ring Road Projects Private Limitedconsidering the accumulated losses in these and in others the management is of view sincethese investee entities business is toll / annuity based which has a long gestationperiod & also arbitration claims will be filed the impairment if any is consideredto be temporary in nature. Further considering the qualified opinion in financialsstatements of four subsidiaries (Bareilly Highways Projects Limited Deharadun HighwaysProjects LimitedHaridhwar Highways Projects Limited West Haryana Highways ProjectsPrivate Limited) the impact on diminution in value as per Indian Accounting Standard(Ind-AS) is not ascertainable ;

10. asper note 47 of the standalone Ind AS financial statements There is delay indeductions & deposit of statutory dues including VAT service - tax excise &customs duty income tax royalty labour cess entry tax provident fund etc. & othersimilar dues returns and forms. Provisions of interest on delay of these have not beenrecognised & exact quantum is not determinable as delay on overall basis andreconciliations are under progress;

11. as per note 49(b) of the standaloneInd AS financial statements regarding based oninadequate security cover prior approval of CDR EG before sale of assets etc. and othernon-compliances of CDR terms & conditions still continues as already reported inearlier periods/years;

12. as per note 49(a) of the standalone Ind AS financial statements regarding loansprovided by lenders under consortium have been reclassified as Non-Performing Assets (NPA)by all the Lenders;

13. For earlier non-compliances the Company is in the process of complying with therelevant provisions of the Companies Act 2013 & the SEBI Act 1992 as amended withrespect to quorums meetings of Board of Directors various committees submission &publication of quarterly results filing of various forms & declarations compliancewith listing regulations etc. The rectification for excess managerial remuneration paidearlier is still awaited;

14. Compliance & records relating to the related parties are being updated. MGT -14 relating approval of Board of Directors for issue of debentures is still pending andthere is absence of women director and chief financial officer in the company and commondirector to material subsidiary. As per the management the process of appointment in underprogress;

15. as per note 48 of the standalone Ind AS financial statements regarding the stockexchanges have levied a penalty of Rs. 33.22 Lakhs for non-publishing & filing ofresults of quarter ended 30th June & 30th September 2015 ontime. Management expects it to be waived off;

16. as per note 18 of the standaloneInd AS financial statements regarding nonascertainment of interest and dues to micro small and medium enterprises under MSMED Act2006.

As a consequence of above qualification explicit unreserved statements for complianceof all Ind AS is not in compliance with requirement of Ind AS.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except the possible effects of the matters described in the aforesaidparagraphs 1 to 16 for our basis of qualified opinion the aforesaid standalone Ind ASfinancial statements give the information required by the Act in the manner so requiredand give a true and fair view in conformity with the accounting principles generallyaccepted in India including the standalone Ind AS of the financial position of theCompany as at 31st March 2017 and its financial performance including othercomprehensive income its cash flows and the changes in equity for the year ended on thatdate.

Other Matters

The comparative financial information of the company for the transition date openingbalance sheet as at 01st April 2015 included in these standalone Ind ASfinancial statements is based on the previously issued statutory financial statementsprepared in accordance with the Companies (Accounting Standards) Rules 2006 audited bythe predecessor auditor whose report for the year ended 31st March 2015 dated30th May 2015 expressed an unmodified opinion on those standalone financialstatements as adjusted for the differences in the accounting principles adopted by thecompany on transition to the Ind AS which has been audited by us.

Our opinion is not modified in respect of these matters.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of section 143(11) of the Act we givein "Annexure - A" a statement on the matters specified in paragraphs 3 and 4 ofthe Order.

2. As required by section 143(3)of the Act we report that:

a. we have sought and except for the matters described in the basis for qualifiedopinion paragraph obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit;

b. except for the possible effects of the matters described in the basis for qualifiedopinion paragraph in our opinion proper books of account as required by law have beenkept by the Company so far as appears from our examination of those books;

c. the Balance Sheet Statement of Profit and Loss Cash Flow Statement and Statementof Changes in Equity dealt with by this Report are in agreement with the books of account;

d. in our opinion the aforesaid standalone Ind AS financial statements comply with theAccounting Standards specified under Section 133 of the Act read with relevant rulesissued thereunderexcept for the non-compliance of explicit unreserved statement ofcompliance;

e. on the basis of written representations received from the directors as on 31 March2017 and taken on record by the Board of Directors none of the directors is disqualifiedas on 31 March 2017 from being appointed as a director in terms of Section 164(2) of theAct;

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 information and according to the explanations given to us:

i) the Company has disclosed the impact of pending litigation on its financial positionin its standalone Ind AS financial statements- Refer note 33 to the standalone Ind ASfinancial statements;

ii) except for the possible effects of the matter described in the basis for qualifiedopinion paragraph based on available records and information and explanation andconsidering the possible impact due to litigation and delay in projects we have beenexplained that there are no material foreseeable losses on long term contracts thereforethe Company has not made any provision required under the applicable law or Indianaccounting standards;

iii) based on the records there is delay in transfer of amount to the InvestorEducation and Protection Fund by the Company; and

iv) the company has provided requisite disclosure in its standalone Ind AS financialstatements as to holdings as well as dealings in Specified Bank Notes during the periodfrom 8th November 2016 to 30th December 2016. And on the basis ofinformation & explanation provided these are in accordance with the books of accountsmaintained by the company. Refer note 54 to the standalone Ind AS financial statements.

For S. S. KOTHARI MEHTA & CO.

Chartered Accountants

Firm Registration No. 000756N

Neeraj Bansal

Partner

Membership No. 095960

Place : Noida

Date : 29.05.2017

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE IND ASFINANCIAL STATEMENTS OF ERA INFRA ENGINEERING LIMITED

Referred to in paragraph 1 of report on other legal and regulatory requirement'sparagraph of our report on the financial statement

of even date.

i) In respect of Fixed Assets

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

(b) The Company has a programme of verification of fixed assets to cover all the itemsin phased manner over a period of three years which in our opinion is reasonable havingregards to the size of the Company and the nature of its assets. Pursuant to theprogramme the company has carried out physical verification of its assets during the yearas per the programme the difference between book balance and physical balances being nonmaterial has not been adjusted. Documentations on physical verifications needs to beupdated.

(c) The title of immovable properties is based on available records and managementcertified true copy as the originals are being pledged with bankers as security forborrowings.

ii) In respect of Inventory

(a) The company is developing a program for physical verification of work -in progressof Rs. 60593.13 Lakhs recognised in books as on 31.03.2017. On completion of physicalverification & post reconciliation with the records discrepancies will be adjusted.For raw material & other inventory management has completed the physical verificationis under process of reconciling as explained and based on reconciliation the differenceand discrepancies have been adjusted; (refer note 52of the Ind AS financial statements andin qualified opinion in our main report).

(b) In our opinion and according to the information and explanations given to us theprocedures of physical verification of inventories subject to above mentionedobservations followed by the management are reasonable and adequate in relation to thesize of the Company and the nature of its business.

(c) I n our opinion and according to the information and explanations given to us theCompany is maintaining proper records of inventories however these needs to be updated.As explained to us due to reconciliation process is under progress so difference anddiscrepancies will be adjusted on completion of such reconciliation.

iii) In respect of Loan granted

(a) As informed to us and books and records the Company has granted unsecured interestfree loans to three Companies covered in the register maintained under section 189 and thetotal outstanding is Rs 1529.16 lakhs.

(b) As explained to us the terms and condition of loans are not prejudicial to theinterest of the Company as the document for loans are under process in absence any updateddocument for terms and condition we cannot comment on reliability of principle andinterest.

iv) Based on information and explanations and available records the loans investmentsguarantees and pledge of securities given to/ for subsidiaries/ associates/ joint venturesare in compliance of section 185 and 186 of the Companies Act 2013 as these are coveredunder exceptions as provided in section 185 and 186 of the Companies Act 2013 and arewithin the prescribed limits and as necessary approvals.

v) The Company has not accepted any deposits from the public within the meaning ofdirectives issued by the Reserve Bank of India and provisions of sections 73 to 76 or anyother relevant provisions of the act and the rules framed thereunder.

vi) We have broadly reviewed the cost audit records maintained by the Company pursuantto the Companies (Cost records and audit) Rules 2014 under section 148 of the act and areof the opinion that prima facie the prescribed cost records have been made andmaintained. We have however not made a detailed examination of the cost records with aview to determine whether they are accurate or complete.

vii) In respect of statutory Dues

(a) According to the information and explanations given to us and the records of theCompany examined by us in our opinion the Company is not regular in depositingundisputed statutory dues in respect of Provident Fund Investor Education and ProtectionFund Employees' State Insurance Income Tax Sales Tax Wealth Tax Service Tax CustomsDuty Excise Duty Value Added Tax Cess and other material statutory dues as applicablewith the appropriate authorities.

the Company has not deposited statutory dues and amount outstanding for more than sixmonths as on the date of balance sheet from the date they become payable are as mentionedbelow.

(Refer note 47of the Ind AS financial statements and qualified in our main report) ('in lakhs)

S.No. Name of the Statute Amount Outstanding as on 31.03.2017
1 Income Tax Act 1961 2645.95 3757.21
2 Royalty under various State Royalty Acts 32.36 62.28
3 Employee State Insurance Act 4.64 4.64
4 Employees' Provident Fund Act 834.65 1079.18
5 Finance Act 1994 (Service Tax) 1271.12 1683.35
6 VAT/WCT under various state Acts 171.23 1113.85
Total 4959.95 7582.53

(b) According to the information and explanations given to us and the records of theCompany examined by us the particulars of dues of Income Tax Sales Tax Custom DutyWealth Tax Excise Duty Service Tax Value Added Tax and Cess which have not beendeposited on account of any dispute are as follows: -

Name of the Dues / Name Of The Statue Disputed Amount (' in Lacs) Period to which amount relates Forum where dispute is pending
Sales Tax / Value Added Tax
Delhi VAT 1697.96 2009-10 2010-11 2012- 13& 2013-14 DVAT Tribunal - Commercial Tax Officer Delhi
Delhi VAT 3990.77 2011-12 Special Commissioner-1 Taxes New Delhi
Jharkhand VAT 815.82 2010-11 2011-12 & 201213 JT. Commissioner (Appeal) Jharkhand
Karnataka VAT 31.41 2009-10 JT. Commissioner (Appeal)
Tamilnadu VAT 958.89 2010-11 & 2013-14 Commercial Tax Officer Tamilnadu
Bihar VAT 28.34 2013-14 JT. Commissioner Commercial Tax (Appeal) Gaya
Chhatisgarh VAT 124.26 2007-08 Commercial Tax Officer Chhattisgarh
Madhya Pradesh VAT 398.07 2011-12 2012-13& 201314 Assistant Commissioner of Commercial Tax Department Indore (M.P.)
Gujarat VAT 1261.74 2009-10 2010-11 & 201112 Commercial Tax Officer Gujarat
Uttar Pradesh VAT 494.11 2013-14 JT. Commissioner Commercial Tax (Appeal) Ghaziabad
West Bengal VAT 90.94 2004-05 & 2007-08 Commercial Tax Officer West Bengal
Punjab VAT 2.47 2006-07 Assistant Excises & Taxation Commissioner Shambhu Import Punjab
Customs / Excise Duty
Custom Act 1962 29.50 2007-08 Tribunal Appellate Authority - Kolkata
Custom Act 1962 567.48 2012-13 Tribunal Appellate Authority - Mumbai
Central Excise Act 1944 11.39 2011-12 & 2012-13 Tribunal Appellate Authority - Allahabad
Central Excise Act 1944 13.88 2012-13 & 2013-14 Tribunal Appellate Authority - Allahabad
Name of the Dues / Name Of The Statue Disputed Amount (' in Lacs) Period to which amount relates Forum where dispute is pending
Central Excise Act 1944 2.93 2011-12 & 2012-13 Commissionerate Meerut - I
Central Excise Act 1944 0.34 2013-14 Commissionerate Meerut - I
Central Excise Act 1944 3.70 2013-14 Commissionerate Meerut - I
Central Excise Act 1944 3.58 2012-13 Commissionerate Meerut - I
Central Excise Act 1944 1.45 2013-14 Commissionerate Meerut - I
Central Excise Act 1944 7.31 2012-13 Commissionerate Meerut - I
Central Excise Act 1944 6.27 2011-12 & 2012-13 Commissionerate Meerut - I
Central Excise Act 1944 1.22 2013-14 Commissionerate Meerut - I
Central Excise Act 1944 2.58 2013-14 & 2014-15 Commissionerate Meerut - I
Central Excise Act 1944 2.50 2011-12 & 2012-13 Commissionerate Delhi
Central Excise Act 1944 2.87 2014-15 & 2015-16 Dehradun Commissionerate
Central Excise Act 1944 3.50 2014-15 & 2015-16 Commissioner Appeal Meerut
Central Excise Act 1944 15.27 2015-16 Commissioner Appeal Meerut
Central Excise Act 1944 4.18 2015-16 Commissioner Appeal Meerut
Service Tax
Finance Act 1994 3554.64 2007-08 The Additional Commissioner of (Adjudication) Central Excise Delhi - 1
Finance Act 1994 310.34 2008-09 The Additional Commissioner of (Adjudication) Central Excise Delhi - 1
Finance Act 1994 450.37 2008-09 The Additional Commissioner of (Adjudication) Central Excise Delhi - 1
Finance Act 1994 116.53 2009-10 & 2010-11 The Additional Commissioner of (Adjudication) Central Excise Delhi - 1
Finance Act 1994 34.16 2010-11 & 2011-12 The Additional Commissioner of (Adjudication) Central Excise Delhi - 1
Finance Act 1994 150.00 2006-07 Tribunal Authority R. K. Puram
Finance Act 1994 2090.37 2010-11 & 2011-12 Tribunal Authority R. K. Puram
Finance Act 1994 918.65 2012-13 & 2013-14 The Additional Commissioner of (Adjudication) Central Excise Delhi- 1
Income Tax
Income Tax Act1961 2554.02 2009-10 ITAT Delhi
Income Tax Act1961 5187.75 2008-09 ITAT Delhi
Royalty
Madhya Pradesh Royalty Demand 100.00 2006-07 Revenue Board Gwalior
Madhya Pradesh Royalty Demand 20.40 2006-07 Revenue Board Gwalior
Madhya Pradesh Royalty Demand 28.04 2004-05 Commissioner Ujjain
Name of the Dues / Name Of The Statue Disputed Amount (' in Lacs) Period to which amount relates Forum where dispute is pending
Labour Cess
The Building & Other construction Workers (Regulation Of Employment & Condition Of Service) Act 1996 85.61 2006-07 Hon'able Supreme Court

viii) According to the records of the Company examined by us and the information andexplanations given to us the Company has defaulted in payment of principle and interestto banks and financial institution the details are hereunder (refer note 49(a) of the IndAS financial statements).

Name of Lender Principal Amount (Amount in Lacs) Interest Amount (Amount in Lacs) Period of default (Days in Range)
Allahabad bank 296.25 316.04 1 to above 365 Days
Andhra bank 3228.74 - Above 425Days
Axis bank 5.08 - Above 425 Days
Bank of baroda 623.37 897.96 1 to above 1005 days
Bank of india 18667.84 13723.34 1 to above 365 days
Bank of maharashtra 5439.53 9200.41 1 to above 424 days
Canara bank 7161.81 9800.38 1 to above 365 days
Central bank of india 531.3 1365.69 1 to above 365 days
Corporation bank 5494.39 8729.57 1 to above 365 days
Dhanlaxmi bank ltd 145.19 - Above 425 Days
First leasing co. of India ltd. 122.06 - Above 425 Days
General insurance company limited 450.00 1298.86 1 to Above 1004 Days
Hdfc bank ltd 37.25 - Above 425 Days
Idbi bank ltd 10049.13 4535.73 1 to above 396 Days
Indian overseas bank 8679.59 13399.7 1 to above 365 Days
Karnataka bank 3750.00 1977.34 Above 1004 Days
Lic of india 600.00 2552.31 1 to Above 1004 Days
Magma fincorp ltd 140.50 - Above 425 Days
Oriental bank of commerce 3529.63 2800.35 1 to above 365 Days
Punjab &sind bank 3000.00 1501.08 Above 973 Days
Punjab national bank 2955.97 5599.48 Above 455 Days
Religarefinvest ltd 7.52 - Above 425 Days
Sicom limited 4999.56 2692.42 Above 973 Days
State bank of hyderabad 1412.21 1761.22 1 to above 365 Days
State bank of india 5873.81 8646.46 1 to above 365 Days
Syndicate bank 1645.23 2042.64 1 to above 365 Days
Tata capital financial services ltd 32.42 - Above 425 Days
Uco bank 11761.55 14378.01 1 to above 365 Days
Union bank of India 10087.73 17536.09 1 to above 365 Days
United bank of India 338.47 375.88 1 to above 365 days
Vijaya bank 2433.72 3195.21 1 to above 365 Days

In case where range is not given are due from the date of declaration of NPA.

ix) As per the information and explanation given to us and on the basis of ourexamination of the records the company has not raised moneys by way of initial publicoffer or further public offer (including debt instruments) and terms loan during the year.

x) During the course of our examination of the books and records of the Companycarried out in accordance with the Generally Accepted Auditing Practices in India we haveneither came across any instance of fraud on or by the Company noticed or reported duringthe year nor had been informed of such case by the management.

xi) As per the information and explanation given to us and on the basis of ourexamination of the records the managerial remuneration has been paid or provided inaccordance with the requisite approvals mandated by the provisions of section 197 readwith Schedule V to the Companies Act 2013.

xii) The company is not Nidhi Company therefore this clause is not applicable to thecompany.

xiii) Based on records and as per the information and explanation given to us and onthe basis of our examination of the records the company has transacted with the relatedparties which are in compliance with sections 177 and 188 of Companies Act 2013 and thedetails have been disclosed in the financial statements. The entries required to beupdated in register needs to be strengthen. (Refer note 41 of the Ind AS financialstatements)

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

xv) As per the information and explanations given to us and on the basis of ourexamination of the records the company has not entered into any non-cash transactionswith directors or persons connected with him.

xvi) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Therefore this clause is not applicable to the company.

For S. S. KOTHARI MEHTA & CO.

Chartered Accountants Firm Registration No. 000756N

Neeraj Bansal

Partner

Membership No. 095960

Place : Noida

Date : 29.05.2017

"ANNEXURE - B" TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE IND ASFINANCIAL STATEMENTS OF ERA INFRA ENGINEERING LIMITED

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 EraInfra Engineering Limited ("the Company") as of March 31 2017 inconjunction with our audit of the financial statements of the Company for the year endedon that 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". These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor's 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 qualified audit opinion on the Company's internal financialcontrols system over 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 authorisations 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 in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Qualified Opinion

According to the information and explanations given to us and based on our audit thefollowing material weaknesses have been identified as at March 31 2017:

The review process of short term loans & advances and periodic review of thoserecovery & advances is and are not operating effectively which may impact thereasonable certainty of ultimate adjustment or collection and the procedure for physicalverification of work in progress is not operating effectively which may result in ultimateimpairment of inventory.

A 'material weakness' is a deficiency or a combination of deficiencies in internalfinancial control over financial reporting such that there is a reasonable possibilitythat a material misstatement of the company's annual or interim financial statements willnot be prevented or detected on a timely basis.

In our opinion the Company has in all material respects maintained adequate internalfinancial control in our financial reporting as of 31st March 2017 based onthe internal control over financial reporting criteria system & proceduresestablished 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 and except for the effects /possible effects of the material weaknesses described above on the achievements of theobjectives of the control criteria the company's internal financial controls overfinancial reporting were operating effectively as of 31st March 2017.

We have considered the material weaknesses identified and reported above in determiningthe nature timing and extent of audit tests applied in our audit of the March 31 2017financial statements of the Company and these material weaknesses do not affect ouropinion on the standalone financial statements of the Company.

For S. S. KOTHARI MEHTA & CO.

Chartered Accountants

Firm Registration No. 000756N

Neeraj Bansal

Partner

Membership No. 095960

Place : Noida

Date : 29.05.2017