Madhav Infra Projects Ltd.
|BSE: 539894||Sector: Infrastructure|
|NSE: N.A.||ISIN Code: INE631R01018|
|BSE 05:30 | 01 Jan||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
|BSE: 539894||Sector: Infrastructure|
|NSE: N.A.||ISIN Code: INE631R01018|
|BSE 05:30 | 01 Jan||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
To The Members of Madhav Infra Projects Ltd.
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of M/s Madhav InfraProjects Limited ("the company") which comprise the Balance Sheet as at 31stMarch 2016 the Statement of Profit and Loss for the year then ended and a summary of thesignificant accounting policies and other explanatory information.
Managements Responsibility for the Standalone Financial Statements
The Companys Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 ("the Act") with respect to preparation ofthese standalone financial statements that give a true and fair view of financialposition financial performance of the company in accordance with the accountingprinciples generally accepted in India including Accounting Standards specified undersection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of financial statements that give atrue and fair view and are free from material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provision of the Act the accountingand auditing standards and the matters which are required to be included in the auditreport under provision of the Act and 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 the ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement. An audit involves performingprocedures to obtain audit evidence about the amounts and the disclosures in the financialstatements. The procedures selected depend on the auditors judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error. In making those risk assessments the auditor considers the internalfinancial control relevant to the Companys preparation and fair presentation 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 accounting policies used and the reasonableness of the accountingestimates made by the Companys Director as well as evaluating the overallpresentation of the financial statement.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.
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 true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2016 and its profit and its cash flow for the year ended on that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditors Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure A a statement on the matters specified inthe paragraph 3 and 4 of the order. As required by Section 143 (3) of the Act we reportthat: 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. In our opinionproper books of account as required by law have been kept by the Company so far as itappears from our examination of those books. The Balance Sheet the Statement of Profitand Loss dealt with by this report are in agreement with the books of account.
(a) 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;
(b) On the basis of the written representations received from the directors as on 31stMarch 2016 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2016 from being appointed as a director in terms of Section164 (2) of the Act; and
(c) With respect to the adequacy of the internal financial controls over financialreporting of the company and operating effectiveness of such controls refer to ourseparate report in "Annexure B" and
(d) With respect to the other matters to be included in the Auditors 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.
ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts.
iii. The Company does not have any unclaimed/unpaid dividend outstanding for more thanseven years. Hence there is no liability to transfer such funds to the Investor Educationand Protection Fund by the Company.
The Annexure referred to in our Independent Auditors Report to the members of theCompany on the standalone financial statements for the year ended 31st March2016 we report that:
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) Fixed assets have been physically verified by the management during the year and asinformed material discrepancies were not identified on such verification.
(c) The title deeds of immovable properties of the company are in name of the company.
(ii) (a) As explained to us the inventories of finished and semi-finished goods andraw material at works (except stocks lying with the third parties and in transitconfirmation / subsequent receipt have been obtained in respect of such inventory) havebeen physically verified by the Management at reasonable intervals.
(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 and thenature of its business.
(c) On the basis of our examination of the inventory records in our opinion theCompany is maintaining proper records of Inventory. The discrepancies noticed on physicalverification of inventory as compared to book records were not material.
(iii) Company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of Companies Act.
(a) Not Applicable
(b) Not Applicable
(iv) The company has complied with the provisions of section 185 and 186 of thecompanies Act 2013 in respect of loans investments guarantee and security.
(v) In our opinion and according to information and explanation given to us thecompany has complied with the provision of section 73 to 76 or any other relevantprovisions of the Companies Act 2013 and Companies (Acceptance of Deposits) Rules 2014with regard to deposits from public. No order has been passed by Company Law Board ornational company law tribunal or Reserve Bank of India or any court or any tribunal inthis regard.
(vi) We have broadly reviewed the books of accounts relating to materials labor andother items of cost maintained by company pursuant to rules made by Central Government forthe maintenance of cost record under sub-section (I) of section 148 of the Companies Act2013 and we are of the opinion that prima facie the prescribed accounts and records havebeen made and maintained.
(vii) (a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company no undisputed amount payable in respect ofprovident fund employees state insurance income tax sales-tax wealth taxservice tax duty of customs duty of excise value added tax or cess and any otherstatutory dues with appropriate authorities were in arrears as at 31st March 2016 forperiod of more than six months from the date they become payable.
(b) The details of dues of income tax or sales tax or service tax or duty of custom orduty of excise or value added tax not deposited on account of dispute are tabulatedbelow:
(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in repayment of loans or borrowing to financial institutionbank Government. (ix) In our opinion and according to the information given to us theterm loan raised by company during the year has been applied for the purpose for which itwas raised.
(x) According to the information and explanations given to us no material fraud on orby the Company has been noticed or reported during the course of our audit.
(xi) In our opinion and according to the information and explanations given to us theCompany has paid managerial remuneration in accordance with the requisite approvalsmandated by the provisions of section 197 read with Schedule V to the company Act.
(xii) In our opinion and according to the information and explanations given to us theCompany has disclosed the details of all transactions with the related parties incompliance with sections 177 and 188 of Companies Act 2013 in the financial statementsas required by the applicable accounting standard.
(xiii) In our opinion and according to the information given to us the company hasmade preferential allotment during the year under review in compliance with section 42 ofthe Companies Act 2013. The fund raised by the company during the year has been appliedfor the purpose for which it was raised.
(xiv) The company has not entered into any non-cash transactions with directors orpersons connected with him.
(xv) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.
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 MadhavInfra Projects Ltd. ("the Company") as of 31 March 2016 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate.
Managements Responsibility for Internal Financial Controls
The Companys 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 (ICAI). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to companys policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.
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 procedures selected depend on the auditors judgment including the assessmentof the risks of material misstatement of the financial statements whether due to fraud orerror. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the Companys internal financial controlssystem 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.
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 March 2016 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.