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IL&FS Transportation Networks Ltd.

BSE: 533177 Sector: Engineering
NSE: IL&FSTRANS ISIN Code: INE975G01012
BSE LIVE 15:58 | 24 Nov 77.80 1.80
(2.37%)
OPEN

76.50

HIGH

78.90

LOW

76.30

NSE 15:45 | 24 Nov 77.70 1.95
(2.57%)
OPEN

76.00

HIGH

78.90

LOW

75.85

OPEN 76.50
PREVIOUS CLOSE 76.00
VOLUME 568910
52-Week high 124.80
52-Week low 70.00
P/E 10.39
Mkt Cap.(Rs cr) 2,559
Buy Price 0.00
Buy Qty 0.00
Sell Price 77.80
Sell Qty 415.00
OPEN 76.50
CLOSE 76.00
VOLUME 568910
52-Week high 124.80
52-Week low 70.00
P/E 10.39
Mkt Cap.(Rs cr) 2,559
Buy Price 0.00
Buy Qty 0.00
Sell Price 77.80
Sell Qty 415.00

IL&FS Transportation Networks Ltd. (IL&FSTRANS) - Auditors Report

Company auditors report

To the Members of

IL&FS Transportation Networks Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of IL&FSTransportation Networks Limited ("the Company") which comprise the BalanceSheet as at March 31 2017 the Statement of Profit and Loss including the Statement ofOther Comprehensive Income the Cash Flow Statement and the Statement of Changes in Equityfor the year then ended and a summary of significant accounting policies and otherexplanatory information

Management's Responsibility for the 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 accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) specified underSection 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015as amended. 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 the design implementation and maintenance of adequateinternal financial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Ind AS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder. We conductedour audit of the standalone Ind AS financial statements in accordance with the Standardson Auditing issued by the Institute of Chartered Accountants of India as 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 anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the standaloneInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the standalone Ind AS financial statements that give a true and fair viewin order to design audit procedures that are appropriate in the circumstances. An auditalso includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the standalone Ind AS financial statements. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the standalone Ind AS financial statements give the information required bythe 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 March 31 2017 its profit including other comprehensive loss its cash flows andthe changes in equity for the year ended on that date.

Emphasis of Matter

In respect of the matter explained in Note 4(ii)(f) of the

Standalone IndAS Financial Statements in respect of suspension of toll collection ofan associate company pursuant to the order of Hon'ble High Court of Allahabad and thematter is pending with Hon'ble Supreme Court of India.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As r equired by the Companies (Auditor's Report) 2016 ("the Order") issuedby the Central Government of India in terms of sub-section (11) of section 143 of the Actwe give in the "Annexure 1" a Statement on the matters specified in paragraphs 3and 4 of the Order.

2. As r equired 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 purpose 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 Statement of Profit and Loss including the Statement of OtherComprehensive Income the Cash Flow Statement and Statement of Changes in Equity dealtwith by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Accounting Standards specified under Section 133 of the Act read with the Companies(Indian Accounting Standards) Rules 2015 as amended;

(e) On the basis of written representations received from the directors as on March 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 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 2" to this report;

(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 Order and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements – Refer Note 33 to thestandalone Ind AS 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 – Refer Note 15 and 30.6.2 to the standalone Ind AS financialstatements;

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company;

iv. The Company has provided requisite disclosures in Note 12(d) to these standaloneInd AS financial statements as to the holding of Specified Bank Notes on November 8 2016and December 30 2016 as well as dealings in Specified Bank Notes during the period fromNovember 8 2016 to December 30 2016. Based on our audit procedures and relying on themanagement representation regarding the holding and nature of cash transactions includingSpecified Bank Notes we report that these disclosures are in accordance with the books ofaccounts maintained by the Company and as produced to us by the Management.

Other Matter

The comparative financial information of the Company for the year ended March 31 2016and the transition date opening balance sheet as at April 01 2015 included in thesestandalone Ind AS financial statements are based on the previously issued statutoryfinancial statements prepared in accordance with the Companies (Accounting Standards)Rules 2006 audited by one of us whose report for the year ended March 31 2016 and March31 2015 dated May 13 2016 and May 15 2015 respectively expressed an unmodified opinionon those standalone financial statements as adjusted for the differences in theaccounting principles adopted by the Company on transition to the Ind AS which have beenjointly audited by us.

For DELOITTE HASKINS & SELLS LLP For S R B C & CO LLP
Chartered Accountants Chartered Accountants
ICAI Firm Registration Number: 117366W/W100018 ICAI Firm Registration Number: 324982E/E300003
per Shrenik Baid per Ravi Bansal
Partner Partner
Membership Number: 103884 Membership Number: 49365
Place of Signature: Mumbai Place of Signature: Mumbai
Date: May 29 2017 Date: May 29 2017

ANNEXURE 1

Referred to in paragraph 1 under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date

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

(b) All fixed assets were physically verified during the year by the Management inaccordance with a regular programme of verification which in our opinion provides forphysical verification of all the fixed assets at reasonable intervals. According to theinformation and explanation given to us no material discrepancies were noticed on suchverification.

(c) According to the information and explanations given to us and the records examinedby us and based on the examination of the registered Conveyance deed provided to us wereport that the title deed of immovable property of building is freehold and is held inthe name of the Company as at the balance sheet date. The Company does not have immovableproperties of leasehold land and buildings and disclosed as fixed assets in the financialstatements.

(ii) As e xplained to us the inventories were physically verified by the management atreasonable intervals and no material discrepancies were noticed on physical verification.

(iii) Accor ding to the information and explanations to us the Company has granted anyloans secured or unsecured to companies firms Limited Liability Partnerships or otherparties covered in the register maintained under Section 189 of the Companies Act 2013in respect of which :

(a) The terms and conditions of the grant of such loans are in our opinion primafacie not prejudicial to the Company's interest.

(b) The Schedule of repayment of principal and payment of interest has been stipulatedwherever applicable and the repayments or receipts of principal amounts and contractualinterest have been generally regular as per stipulations

(c) There is no amount overdue for more than 90 days as at March 31 2017

(iv) The Company has not granted any loans covered under Section 185 of the CompaniesAct 2013. The Company is in the business of providing infrastructural facilities andhence provisions of Section 186 of the Companies Act 2013 do not apply to the Companyhowever the Company is in compliance of Section 186(1).

(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76of the Act and the Companies (Acceptance of Deposits) Rules 2014 (as amended).Accordingly the provisions of clause 3(v) of the Order are not applicable. There are nounclaimed deposits with the Company any time during the year.

(vi) W e have broadly reviewed the books of account maintained by the Company pursuantto the rules made by the Central Government for the maintenance of cost records underSection 148(1) of the Companies Act 2013 and are of the opinion that prima facie thespecified accounts and records have been made and maintained. We have not however made adetailed examination of the same.

(vii) Accor ding to the information and explanations given to us in respect ofstatutory dues:

(a) Undisputed statutory dues including provident fund employees' state insuranceincome-tax given sales-tax service tax duty of custom duty of excise value added taxcess and other statutory dues have generally been regularly deposited with the appropriateauthorities though there has been a delays in a few cases.

(b) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund income-tax service tax sales-tax value added taxcess and other statutory dues were outstanding at the year end for a period of more thansix months from the date they became payable.

(c) According to the records of the Company the dues outstanding of income-taxservice tax value added tax entry tax CST on account of any dispute are as follows:

Name of Statue Nature of dues Forum where dispute is pending Period to which the amount relates Amount Involved (Rs in Crore) Unpaid Amount
(Rs in Crore)
Finance Act 1994 Service Tax CESTAT 2012-13 1.20 0.60
Madhya Pradesh VAT Act Value Added Tax MP Commercial Tax Appellate Board 2012-13 0.68 0.09
Madhya Pradesh VAT Act Value Added Tax MP Commercial Tax Appellate Board 2013-14 1.43 0.03
Madhya Pradesh VAT Act Value Added Tax Entry Tax and CST Dy. Commissioner of Commercial Tax 2014-15 0.09 0.07
Punjab VAT Act Value Added Tax Deputy Commissioner Appeal 2013-14 0.37 0.18
Punjab VAT Act Value Added Tax Deputy Commissioner Appeal 2014-15 0.43 -
Rajasthan VAT Act Value Added Tax Deputy Commissioner Appeals Commercial Tax Department Jaipur 2011-12 0.08 0.08
Uttar Pradesh VAT Act Value Added Tax Additional Commissioner (Appeal) Commercial Tax Additional 2012-13 7.37 3.69
Uttar Pradesh VAT Act Value Added Tax CST & Entry Tax Commissioner (Appeal) Commercial Tax 2013-14 38.76 38.76
West Bengal VAT Act Value Added Tax Senior Joint Commissioner of Sales Tax Appeal 2013-14 0.59 -
Income Tax Act 1961 Income Tax Income Tax Appellate Tribunal- Mumbai 2008-2009 4.39 -
Income Tax Act 1961 Income Tax Commissioner of Income Tax (Appeals)- Mumbai 2009-2010 6.97 -
Income Tax Act 1961 Income Tax Commissioner of Income Tax (Appeals)- Mumbai 2010-2011 12.56 -
Income Tax Act 1961 Income Tax Commissioner of Income Tax (Appeals)- Mumbai 2011-2012 3.70 -
Income Tax Act 1961 Income Tax Commissioner of Income Tax (Appeals)- Mumbai 2012-2013 12.10 -

(viii) In our opinion and according to the information and explanations given by themanagement the Company has not defaulted in repayment of loans or borrowing to afinancial institution bank or government or dues to debenture holders.

(ix) In our opinion and according to the information and explanations given by themanagement the Company has utilized the monies raised by term loans for the purposes forwhich they were raised other than temporary deployment pending application of proceeds.The Company has not raised any money by way of initial public offer/further public offer(including debt instruments) during the year.

(x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management we report that no fraud by the company material fraud on thecompany by the officers and employees of the Company has been noticed or reported duringthe year.

(xi) Accor ding to the information and explanations given by the management themanagerial remuneration has been paid / provided in accordance with the requisiteapprovals mandated by the provisions of Section 197 read with Schedule V to the CompaniesAct 2013.

(xii) In our opinion the Company is not a nidhi company. Therefore the provisions ofclause 3(xii) of the order are not applicable to the Company and hence not commented upon.

(xiii) Accor ding to the information and explanations the management transactions withthe related parties are in compliance with Section 177 and 188 of Companies Act 2013where applicable and the details have been disclosed in the notes to the financialstatements etc. as required by the applicable accounting standards.

(xiv) Accor ding to the information and explanations us and on an overall examinationof the balance sheet the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year under reviewand hence reporting requirements under clause 3(xiv) are not applicable to the companyand not commented upon.

given (xv)by Accor ding to the information and explanations given by the managementthe Company has not entered into any non-cash transactions with directors or personsconnected with him as referred to in Section 192 of Companies Act 2013.

(xvi) Accor ding to the information and explanations given to given tous theprovisions of section 45-IA of the Reserve Bank of India Act 1934 are not applicable tothe Company.

For DELOITTE HASKINS & SELLS LLP For S R B C & CO LLP
Chartered Accountants Chartered Accountants
ICAI Firm Registration Number: 117366W/W100018 ICAI Firm Registration Number: 324982E/E300003
per Shrenik Baid per Ravi Bansal
Partner Partner
Membership Number: 103884 Membership Number: 49365
Place of Signature: Mumbai Place of Signature: Mumbai
Date: May 29 2017 Date: May 29 2017

ANNEXURE 2

To the Independent Auditor's Report of even date on the Standalone Financial Statementsof IL&FS Transportation Networks 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 IL&FSTransportation Networks Limited ("the Company") as of March 31 2017 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on 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 responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the 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 as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls and both issued by the Institute of Chartered Accountants of India.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 judgement 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 audit opinion on the internal financial controls system overfinancial 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.

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 March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For DELOITTE HASKINS & SELLS LLP For S R B C & CO LLP
Chartered Accountants Chartered Accountants
ICAI Firm Registration Number: 117366W/W100018 ICAI Firm Registration Number: 324982E/E300003
per Shrenik Baid per Ravi Bansal
Partner Partner
Membership Number: 103884 Membership Number: 49365
Place of Signature: Mumbai Place of Signature: Mumbai
Date: May 29 2017 Date: May 29 2017