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

NCC Ltd.

BSE: 500294 Sector: Infrastructure
NSE: NCC ISIN Code: INE868B01028
BSE LIVE 15:58 | 22 Sep 84.90 -3.75
(-4.23%)
OPEN

88.40

HIGH

88.40

LOW

84.50

NSE 15:57 | 22 Sep 84.90 -3.80
(-4.28%)
OPEN

87.80

HIGH

87.85

LOW

84.50

OPEN 88.40
PREVIOUS CLOSE 88.65
VOLUME 270852
52-Week high 103.75
52-Week low 71.20
P/E 17.33
Mkt Cap.(Rs cr) 4,720
Buy Price 0.00
Buy Qty 0.00
Sell Price 84.90
Sell Qty 525.00
OPEN 88.40
CLOSE 88.65
VOLUME 270852
52-Week high 103.75
52-Week low 71.20
P/E 17.33
Mkt Cap.(Rs cr) 4,720
Buy Price 0.00
Buy Qty 0.00
Sell Price 84.90
Sell Qty 525.00

NCC Ltd. (NCC) - Auditors Report

Company auditors report

To

The Members of

NCC Limited

Report on the Standalone Ind AS Financial Statements

We have audited the accompanying standalone Ind AS financial statements of NCCLimited ("the Company") which comprise the Balance Sheet as at March 312017 and the Statement of Profit and Loss (including Other Comprehensive Income) theCash Flow Statement and the Statement of Changes in Equity 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 located at Oman Nepal and Sri Lanka and twenty six(26) Joint Operations.

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.

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 standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit.

In conducting 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 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 andthe disclosures in the standalone Ind AS financial statements. The procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the standalone Ind AS financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by the Company'sDirectors as well as evaluating the overall presentation of the standalone Ind ASfinancial statements.

We believe that the audit evidence obtained by us and the audit evidence obtained bythe branch auditors and other auditors in terms of their reports referred to in the OtherMatters paragraph belowis sufficient and appropriate to provide a basis for our auditopinion 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 and based on the consideration of reports of the branch auditors and otherauditors on separate financial statements of the branches and joint operations referred toin the Other Matters paragraph below the aforesaid standalone Ind AS financial statementsgive the information required by the Act in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2017 and its profit total comprehensiveincome its cash flows and the changes in equity for the year ended on that date.

Other Matters

a) We did not audit the financial statements of three (3) branches and one (1) jointoperations included in the standalone Ind AS financial statements of the Company whosefinancial statements reflect total assets of '1373.94 million as at March 31 2017 andtotal revenues of '2100.91 million for the year ended on that date as considered in thestandalone Ind AS financial statements. The financial statements of these branches andjoint operations have been audited by the branch auditors and other auditors whose reportshave been furnished to us and our opinion in so far as it relates to the amounts anddisclosures included in respect of these branches and joint operations and our report interms of subsection (3) of Section 143 of the Act in so far as it relates to theaforesaid branches and joint operations is based solely on the report of such branchauditors and other auditors.

b) We did not audit the financial statements of seventeen (17) joint operationsincluded in the standalone financial statements of the companies included in the Companywhose financial statements reflect total assets of '541.59 million as at March 31 2017and total revenues of '145.26 million for the year ended on that date as considered inthe respective standalone financial statements of the companies included in the Company.The financial statements of these joint operations have not been audited by us. Thesefinancial statements are unaudited and have been furnished to us by the Management and ouropinion on the consolidated Ind AS financial statements in so far as it relates to theamounts and disclosures included in respect of these joint operations is based solely onsuch unaudited financial statements. In our opinion and according to the information andexplanations given to us by the Management these financial statements are not material tothe Company.

Of these two (2) branches are located outside India whose financial statements andother financial information have been prepared in accordance with accounting principlesgenerally accepted in their respective countries and which have been audited by otherauditors under generally accepted auditing standards applicable in their respectivecountries. The Company's management has converted the financial statements of suchbranches located outside India from accounting principles generally accepted in theirrespective countries to accounting principles generally accepted in India. We have auditedthese conversion adjustments made by the Company's management. Our opinion in so far as itrelates to the balances and affairs of such branches located outside India is based on thereport of other auditors and the conversion adjustments prepared by the management of theCompany and audited by us.

c) The comparative financial information for the year ended March 31 2016 and thetransition date opening balance sheet as at April 012015:

(i) in respect of one (1) branch included in this Standalone Ind AS financialstatements prepared in accordance with the Ind AS are audited by the other auditors.

(ii) in respect of one (1) joint operations included in this Standalone Ind ASfinancial statements prepared in accordance with the Ind AS are audited by the otherauditors.

(iii) in respect of two (2) branches included in this Standalone Ind AS financialstatements are prepared in accordance with accounting principles generally accepted intheir respective countries (Local GAAP) and audited by the branch auditors as per theirLocal GAAP. The Company's management has converted the financial statements of suchbranches and joint operations from Local GAAP to accounting principles generally acceptedin India. We have audited these conversion adjustments made by the Company's management.Our opinion in so far as it relates to the balances and affairs of such branches locatedoutside India is based on the report of the other auditors and the conversion adjustmentsprepared by the management of the Company and audited by us.

(iv) in respect of seventeen (17) joint operations included in this Standalone Ind ASfinancial statements prepared in accordance with the Ind AS are not been audited by us.These financial statements are unaudited and have been furnished to us by the Managementand our opinion on such Ind AS financial statements in so far as it relates to theamounts and disclosures included in respect of these joint operations is based solely onsuch unaudited financial statements.

Our opinion on the standalone financial statements and our report on Other Legal andRegulatory Requirements below is not modified in respect of these matters.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit and on theconsideration of the reports of the branch auditors and other auditors on the separatefinancial statements of the branches and joint operations referred to in the OtherMatters paragraph above we report to the extent applicable 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 the reports of theother auditors and proper returns adequate for the purposes of our audit have beenreceived from the branches not visited by us.

c) The reports on the accounts of the branches of the Company audited under Section143(8) of the Act by branch auditors have been sent to us and have been properly dealtwith by us in preparing this report.

d) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome the Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the relevant books of account and with the returns receivedfrom the branches not visited by us.

e) In our opinion the aforesaid standalone Ind AS financial statements comply with theIndian Accounting Standards prescribed under section 133 of the Act.

f) On the basis of the written representations received from the directors as on March31 2017 taken on record by the Board of Directors none of the directors is disqualifiedas on March 312017 from being appointed as a director in terms of Section 164(2) of theAct.

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 controls overfinancial 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone 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.

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

iv. The Company has provided requisite disclosures in the standalone Ind AS financialstatements as regards its holding and dealings in Specified Bank Notes as defined in theNotification S.O. 3407(E) dated the November 8 2016 of the Ministry of Finance duringthe period from November 8 2016 to December 30 2016. Based on audit procedures performedand the representations provided to us by the management we report that the disclosuresare in accordance with the books of account maintained by the Company and as produced tous. However as stated in Note 11.8 to the financial statements and as represented to usby the Management during the aforesaid period '10.49 million has been utilized for otherthan permitted transactions and Rs.3.96 million has been received from other thanpermitted transactions.

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

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 Ganesh Balakrishnan
Partner Partner
Membership No. 5176 Membership No. 201193
Hyderabad May 23 2017

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 NCC Limited("the Company") as of March 31 2017 in conjunction with our audit of thestandalone Ind AS 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 respective 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") 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 controls systemover 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 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 2017 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 Ganesh Balakrishnan
Partner Partner
Membership No. 5176 Membership No. 201193
Hyderabad May 23 2017

ANNEXURE "B" TO THE INDEPENDENT AUDITORS' REPORT

(Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements'section of our report of even date)

(i) (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/conveyancedeed provided to us we report that the title deeds comprising all the immovableproperties of land and buildings which are freehold are held in the name of the Companyas at the balance sheet date. Immovable properties of land and buildings whose title deedshave been mortgaged as security for loans are held in the name of the Company based on theconfirmations received. There are no immovable properties of land and buildings that havebeen taken on lease and disclosed as fixed assets in the standalone financial 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 unsecured to companies covered in the Register maintained under Section189 of the Companies Act 2013. In respect of such loans and having regard to the rolloverstipulations for loans 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 provision of sections 185 and 186 of the Companies Act2013.

(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 the prescribed costrecords have been made and maintained. We have however not made a detailed examinationof the cost records with a view to determine whether they are accurate 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 Service TaxCustoms 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 Fund Employees'State Insurance Sales Tax Income- taxService TaxCustoms Duty Excise Duty Value AddedTax Cess and any other statutory dues in arrears as at March 31 2017 for a period ofmore than six months from the date they became payable.

(c) Details of dues of Income-tax Sales Tax Service Tax Customs Duty Excise DutyValue Added Tax and Cess which have not been deposited as on March 31 2017 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)
Central Excise Act 1944 Excise Duty CESTAT Bangalore 2007-2008 3.55
Finance Act 1994 Service Tax CESTAT Bangalore 2005-2011 742.30
Service Tax CESTAT Hyderabad 2010-2015 73.88
Service Tax Commissioner Appeals (MESCOM) 2005-2007 2.96
Service Tax High Court of Judicature at Hyderabad for the State of Telangana and the State of Andhra Pradesh 2007-2009 130.21
Sales tax and VAT laws VAT High Court of Judicature at Hyderabad for the State of Telangana and the State of Andhra Pradesh 2005-2006 14.52
VAT CTO Jubilee Hills Hyderbad 2006-2007 17.96
VAT Addl. Commissioner (CT ) Andhra Pradesh 2012-2013 74.51
VAT Addl. Commissioner (CT ) West Bengal 2010-2011 203.20
VAT Sr.Joint Commissioner Commercial Tax West Bengal 2013-2014 90.71
VAT Department of Trade & Taxes New Delhi 2009-2013 239.39
VAT Appellate Deputy Commissioner KERALA 2008-2009 2.64
VAT Assessing Officer Commercial Tax Dept Kerala 2013-2014 13.14
VAT Commissioner of Commercial Taxes Ranchi Jharkhand 2011-2013 46.49
VAT Deputy Commissioner of Sales tax (Appeals) Assam 2005-2007 184.10
VAT Hon'ble High Court of Madras 2006-2007 4.36
VAT Sr.Joint Commissioner (Appeals) WEST BENGAL 2008-2013 342.84
VAT Joint Commissioner (Appeals) Maharashtra 2010-201 1 29.33
Sales tax Sales Tax Appellate Tribunal ANDHRA PRADESH 1999-2007 57.10
Sales tax Additional Commissioner Grade-2 (Appeals) Commercial Tax Range-5 Lucknow 2006-2007 13.96
Sales Tax High Court of Judicature at Hyderabad for the State of Telangana and the State of Andhra Pradesh 1994-1995 1.67
CST Appellate Authority Bhopal 2011-2015 3.23
CST Odisha High Court 2007-2012 51.53
CST Joint Commissioner (Appeals) Maharashtra 2010-2011 86.26
Entry Tax High Court of Judicature at Hyderabad for the State of Telangana and the State of Andhra Pradesh Commercial Tax Department Andhra Pradesh 2012-2013 4.95
Entry Tax Odisha High Court 2007-2012 22.07

(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 and banks.The Company has not issued any debentures.

(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 Ganesh Balakrishnan
Partner Partner
Membership No. 5176 Membership No. 201193
Hyderabad May 23 2017