You are here » Home » Companies » Company Overview » NCC Ltd

NCC Ltd.

BSE: 500294 Sector: Infrastructure
NSE: NCC ISIN Code: INE868B01028
BSE LIVE 15:40 | 18 Aug 87.30 -0.40
(-0.46%)
OPEN

87.90

HIGH

88.40

LOW

86.50

NSE 15:44 | 18 Aug 87.15 -0.65
(-0.74%)
OPEN

87.50

HIGH

88.45

LOW

86.50

OPEN 87.90
PREVIOUS CLOSE 87.70
VOLUME 244295
52-Week high 103.75
52-Week low 71.20
P/E 17.82
Mkt Cap.(Rs cr) 4,853
Buy Price 0.00
Buy Qty 0.00
Sell Price 87.30
Sell Qty 100.00
OPEN 87.90
CLOSE 87.70
VOLUME 244295
52-Week high 103.75
52-Week low 71.20
P/E 17.82
Mkt Cap.(Rs cr) 4,853
Buy Price 0.00
Buy Qty 0.00
Sell Price 87.30
Sell Qty 100.00

NCC Ltd. (NCC) - Auditors Report

Company auditors report

To The Members of

NCC Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of NCC LIMITED(“the Company”) which comprise the Balance Sheet as at 31 March 2016 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of the significant accounting policies and other explanatory information in whichare incorporated the Returns for the year ended on that date audited by the branchauditors of the Company’s branches at Oman Nepal and Sri Lanka (“thebranches”).

Management’s Responsibility for the Standalone Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 (“the Act”) with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act as applicable.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder and the Order under section 143(11) ofthe Act.

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under Section 143(10) of the Act. Those Standards requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

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. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Company’s Directors as well as evaluating theoverall 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 standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31 March 2016 and its profit and its cash flows for the year ended on that date.

Other Matters

We did not audit the financial statements/information of three (3) branches included inthe standalone financial statements of the Company whose financial statements / financialinformation reflect total assets of Rs. 1085.41 million as at 31 March 2016 and totalrevenues of Rs. 157.74 million for the year ended on that date as considered in thestandalone financial statements. The financial statements/information of these brancheshave been audited by the branch auditors whose reports have been furnished to us and ouropinion in so far as it relates to the amounts and disclosures included in respect ofthese branches is based solely on the report of such branch auditors.

Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. 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 and proper returnsadequate for the purposes of our audit have been received from the branches not visited byus.

(c) The reports on the accounts of the branches audited by the branch auditorsappointed under Section 143 (8) of the Act have been forwarded to us and have beenproperly dealt with by us in preparing this report.

(d) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this Report are in agreement with the books of account and with the returnsreceived from the branches not visited by us.

(e) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act as applicable.

(f) On the basis of the written representations received from the directors as on 31March 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.

(g) 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 A”. Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company’s internal financial controlsover financial reporting.

(h) With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of all pending litigations on its financialposition in its financial statements – refer Note 31 (i)(a) and (b) to the financialstatements;

ii. The Company does not have any material foreseeable losses relating to long-termcontracts including derivative contracts.

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

2. As required by the Companies (Auditor’s Report) Order 2016 (“theOrder”) issued by the Central Government in terms of Section 143(11) of the Act wegive in “Annexure B” a statement on the matters specified in paragraphs 3 and 4of the Order.

For M. BHASKARA RAO & CO For DELOITTE HASKINS & SELLS
Chartered Accountants Chartered Accountants
(Firm’s Registration No.000459S) (Firm’s Registration No.008072S)
M. Bhaskara Rao M. Ramachandran
Partner Partner
Membership No. 5176 Membership No. 16399
Hyderabad May 24 2016 Kochi May 24 2016

ANNEXURE “A” TO THE INDEPENDENT AUDITORS’ REPORT

(Referred to in paragraph 1(g) under ‘Report on Other Legal and RegulatoryRequirements’ of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 (“the Act”)

We have audited the internal financial controls over financial reporting of NCCLIMITED (“the Company”) as of March 31 2016 in conjunction with our auditof the standalone financial statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internalfinancial controls 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 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.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the “Guidance Note”) issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated 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 Company’s 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 processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2016 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For M. BHASKARA RAO & CO For DELOITTE HASKINS & SELLS
Chartered Accountants Chartered Accountants
(Firm’s Registration No.000459S) (Firm’s Registration No.008072S)
M. Bhaskara Rao M. Ramachandran
Partner Partner
Membership No. 5176 Membership No. 16399
Hyderabad May 24 2016 Kochi May 24 2016

ANNEXURE “B” TO THE INDEPENDENT AUDITORS’ REPORT

(Referred to in paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements’ section of our report of even date)

(i) In respect of its fixed assets:

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

(b) A major portion of the fixed assets have been physically verified during the yearby the Management in accordance with a programme of verification which in our opinionprovides for physical verification of all the fixed assets at reasonable intervals havingregard to the size of the Company and the nature of its assets. According to theinformation and explanations given to us the discrepancies noticed on such verificationwere not material and have been properly dealt with in the books of account.

(c) According to the information and explanations given to us and the records examinedby us and based on the examination of the registered sale deed / transfer deed /conveyance deed provided to us we report that the title deeds comprising all theimmovable properties of land and buildings which are freehold are held in the name of theCompany as at the balance sheet date. There are no immovable properties of land andbuildings that have been taken on lease and disclosed as fixed assets in the standalonefinancial statements.

(ii) As explained to us inventories were physically verified during the year by theManagement at reasonable intervals and no material discrepancies were noticed on physicalverification.

(iii) According to the information and explanations given to us the Company hasgranted loans secured or unsecured to companies firms Limited Liability Partnershipsor other parties covered in the Register maintained under Section 189 of the CompaniesAct 2013. In respect of such loans and having regard to the rollover stipulations forloans to certain parties:

(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 stipulatedand repayments or receipts of principal amounts and interest have been regular as perstipulations.

(c) There is no overdue amount remaining outstanding as at the balance sheet date.

(iv) In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Companies Act2013 in respect of grant of loans making investments and providing guarantees andsecurities as applicable.

(v) According to the information and explanations given to us the Company has notaccepted any deposits to which the directions issued by the Reserve Bank of India and theprovisions of Section 73 to Section 76 or any other relevant provisions of the CompaniesAct 2013 and the Rules framed there under where applicable during the year.

(vi) The maintenance of cost records has been specified by the Central Government undersection 148(1) of the Companies Act 2013. We have broadly reviewed the cost recordsmaintained by the Company pursuant to the Companies (Cost Records and Audit) Rules 2014as amended and prescribed by the Central Government under sub-section (1) of Section 148of the Companies Act 2013 and are of the opinion that prima facie theprescribed cost records have been made and maintained. We have however not made adetailed examination of the cost records with a view to determine whether they areaccurate or complete.

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

(a) The Company has generally been regular in depositing undisputed statutory duesincluding Provident Fund Employees’ State Insurance Income-tax Sales Tax ServiceTax Customs Duty Excise Duty Value Added Tax (VAT) Cess and any other statutory duesapplicable to it to the appropriate authorities.

(b) There were no undisputed amounts payable in respect of Provident FundEmployees’ State Insurance Sales Tax Income-tax Service Tax Customs Duty ExciseDuty Value Added Tax Cess and any other statutory dues in arrears as at 31 March 2016for a period of more than six months from the date they became payable.

(c) Details of dues of Income-tax Sales Tax Service Tax Customs Duty Excise Duty Value Added Tax and Cess which have not been deposited as on 31 March 2016 on account ofdisputes are given below:

Statute Nature of dues Forum where dispute is pending Period to which the amount relates Amount involved (Rs. in Million)
Sales Tax and VAT Laws Sales Tax Hon’ble High Court of Judicature at Hyderabad for the State of Telangana and the State of Andhra Pradesh 1994 - 1995 & 2005 - 2006 16.17
Sales Tax Sales Tax Appellate Tribunal Andhra Pradesh 1999 - 2004 & 2006 - 2007 57.10
VAT Appellate Deputy Commissioner Hyderabad 2006 - 2007 17.96
VAT Appellate Additional Commissioner Uttar Pradesh 2005 - 2007 13.96
VAT Deputy Commissioner of Sales tax (Appeals) Assam 2005 - 2007 184.10
Sales Tax Hon’ble High Court of Madras 2006 - 2007 4.36
VAT Sr. Joint Commissioner (Appeals) West Bengal 2008 - 2010 342.84
2011 - 2012
VAT Additional Commissioner (CT); West Bengal 2010 - 2011 203.20
VAT Deputy Commissioner First Appellate Authority Delhi 2009 - 2010 157.50
VAT Appellate Deputy Commissioner Kerala 2007 - 2009 2.64
VAT Commissioner of Commercial Taxes Jharkand 2011 - 2013 46.49
VAT Joint Commissioner of Commercial Taxes Jharkand 2010 - 2011 39.72
Entry Tax Hon’ble High Court of Judicature at Hyderabad for the 2012 - 2013 4.95
State of Telangana and the State of Andhra Pradesh
CST Appellate Authority Bhopal 2011 - 2013 6.65
VAT Hon’ble High Court of Orissa 2007 - 2012 51.53
Entry Tax Hon’ble High Court of Orissa 2007 - 2012 22.06
Central Excise Laws Excise Duty CESTAT Bangalore 2007 - 2009 4.73
Finance Act 1994 Service Tax Hon’ble High Court of Judicature at Hyderabad for the State of Telangana and the State of Andhra Pradesh 2007 - 2008 123.11
Service Tax CESTAT Bangalore 2005 - 2012 1524.56
Service Tax CESTAT Hyderabad 2012 - 2014 45.76

Note:

The above excludes the Income Tax Department’s Draft Notice of Demand amounting toRs. 27.60 Million for the financial year 2011-12 issued by the Assistant Commissioner ofIncome Tax under Section 143(3) read with Section 144C of the Income-tax Act 1961against which the Company has filed its objections with the Dispute Resolution Panel.

(viii) In our opinion and according to the information and explanations given to usthe Company has not defaulted in the repayment of loans or borrowings to financialinstitutions banks and government and dues to debenture holders.

(ix) The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments). In our opinion and according to the information andexplanations given to us the term loans have been applied by the Company during the yearfor the purposes for which they were raised.

(x) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company and no material fraud on the Company by its officersor employees has been noticed or reported during the year.

(xi) In our opinion and according to the information and explanations given to us theCompany has paid / provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.

(xii) The Company is not a Nidhi Company and hence reporting under clause (xii) of theCARO 2016 is not applicable.

(xiii) In our opinion and according to the information and explanations given to usthe Company is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the financial statements etc. as required by theapplicable accounting standards.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause (xiv) of CARO 2016 is not applicable to the Company.

(xv) In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsdirectors or directors of its holding subsidiary or associate company or personsconnected with them and hence provisions of section 192 of the Companies Act 2013 are notapplicable.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For M. Bhaskara Rao & Co For Deloitte Haskins & Sells
Chartered Accountants Chartered Accountants
(Firm’s Registration No.000459S) (Firm’s Registration No.008072S)
M. Bhaskara Rao M. Ramachandran
Partner Partner
Membership No. 5176 Membership No. 16399
Hyderabad May 24 2016 Kochi May 24 2016