You are here » Home » Companies » Company Overview » Petron Engineering Construction Ltd

Petron Engineering Construction Ltd.

BSE: 530381 Sector: Engineering
NSE: PETRONENGG ISIN Code: INE742A01019
BSE 15:44 | 23 Feb 118.50 -1.35
(-1.13%)
OPEN

120.65

HIGH

121.60

LOW

118.00

NSE 15:46 | 23 Feb 119.90 1.50
(1.27%)
OPEN

120.80

HIGH

121.00

LOW

118.00

OPEN 120.65
PREVIOUS CLOSE 119.85
VOLUME 2392
52-Week high 217.15
52-Week low 112.00
P/E
Mkt Cap.(Rs cr) 89
Buy Price 118.50
Buy Qty 31.00
Sell Price 0.00
Sell Qty 0.00
OPEN 120.65
CLOSE 119.85
VOLUME 2392
52-Week high 217.15
52-Week low 112.00
P/E
Mkt Cap.(Rs cr) 89
Buy Price 118.50
Buy Qty 31.00
Sell Price 0.00
Sell Qty 0.00

Petron Engineering Construction Ltd. (PETRONENGG) - Auditors Report

Company auditors report

TO THE MEMBERS OF PETRON ENGINEERING CONSTRUCTION LIMITED Report On The FinancialStatements

We Have Audited The Accompanying Financial Statements Of Petron EngineeringConstruction Limited ("The Company") Which Comprise The Balance Sheet As At31st March 2017 The Statement Of Profit And Loss The Cash Flow Statement For The YearThen Ended And A Summary Of The Significant Accounting Policies And Other ExplanatoryInformation.

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 PreparationAnd Presentation Of These Financial Statements That Give A True And Fair View Of TheFinancial Position Financial Performance And Cash Flows Of The Company In Accordance WithThe Accounting Principles Generally Accepted In India Including The Accounting StandardsSpecified Under Section 133 Of The Act Read With Rule 7 Of The Companies (Accounts)Rules 2014.This Responsibility Also Includes Maintenance Of Adequate Accounting RecordsIn Accordance With The Provisions Of The Act For Safeguarding The Assets Of The CompanyAnd For Preventing And Detecting Frauds And Other Irregularities; Selection AndApplication Of Appropriate Accounting Policies; Making Judgments And Estimates That AreReasonable And Prudent; And Design Implementation And Maintenance Of Adequate InternalFinancial Controls That Were Operating Effectively For Ensuring The Accuracy AndCompleteness Of The Accounting Records Relevant To The Preparation And Presentation OfThe 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 Financial Statements Based On OurAudit.

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 There Under.

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 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 AndThe Disclosures In The Financial Statements. The Procedures Selected Depend On TheAuditor's Judgment Including The Assessment Of The Risks Of Material Misstatement Of TheFinancial Statements Whether Due To Fraud Or Error. In Making Those Risk Assessments TheAuditor Considers Internal Financial Control Relevant To The Company's Preparation 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 The Accounting Policies Used And The Reasonableness Of The AccountingEstimates Made By The Company's Directors As Well As Evaluating The Overall PresentationOf 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 Financial Statements.

Basis For Qualified Opinion Attention Is Drawn To:

I. Note No. 32 In Respect Of Certain Suspended / Delayed Contracts As At 31st March2017 Trade Receivables Of ' 1749 Lacs (Net Of Mobilization Advance And Provisions Of '2934 Lacs) (FY Ended 31st March 2016 ' 1923 Lacs Net Of Mobilization Advance AndProvisions Of ' 2934 Lacs) And Unbilled Revenue Of ' 6256 Lacs (FY Ended 31st March2016'6256 Lacs) Are Doubtful Of Recovery And The Balances Of Trade Receivables And TradePayables Are Pending For Confirmation / Negotiation. Further The Trade Payables AmountingTo ' 815 Lacs (FY Ended 31st March 2016'819 Lacs) And Other Trade Receivables In RespectOf Above Mentioned Contracts Are Also Subject To Final Negotiation/ Confirmation. We AreUnable To Comment On The Status Of Amount Receivables / Payables On The Reported Loss ForThe Year Ended On 31st March 2017 And Its Corresponding Impact On Assets/Liabilities AsAt That Date. This Matter Was Also Qualified In Our Report On The Financial Statements ForThe Year Ended 31st March 2016.

Ii. Note No. 33 Regarding ' 2922 Lacs Of Revenue Recognized Till 31st March 2017 (FYEnded 31st March 2016'2922 Lacs) On Account Of Cost Overruns / Claim On CertainContracts Which Are Not In Accordance With The Principles Set Out In The AccountingStandards AS-7 'Construction Contracts' And Consequently Balance In Retained Earnings AndUnbilled Revenue Balance As At 31st March 2017 Is Higher By ' 2922 Lacs (As At 31st March2016 By ' 2922 Lacs). This Matter Was Also Qualified In Our Report On The FinancialStatements For The Year Ended 31st March 2016.

Iii. Note No. 44 (A) Regarding Delays In Payment Of Certain Statutory Dues And Non /Delay In Filing Of Certain Statutory Returns Where We Are Unable To Comment In Respect OnThe Loss For The Year. Company Needs To Further Strengthen Internal Control System In ThisRegard.

Qualified Opinion

In Our Opinion And To The Best Of Our Information And According To The ExplanationsGiven To Us Except For The Effects Of The Matter Described In The Basis For QualifiedOpinion Paragraph Above The Aforesaid 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 Company As At 31st March 2017 AndIts Loss And Its Cash Flows For The Year Ended On That Date.

Emphasis Of Matters Attention Is Drawn To:

I. Note No. 43 (B): Regarding Balances Of Certain Trade Receivable Unbilled RevenueOther Liabilities (Including Statutory Dues And Returns) And Loan & Advances AreSubject To Confirmation/Reconciliation Where The Management Is Confident That There WillNot Be Any Material Impact On Confirmation /Reconciliation On Loss For The Year.

Ii. Note No. 43(A): Regarding Certain Pending /Delayed Projects Estimated Costs ToCompletion Are Based Upon Management Estimates And Where The Management Is Confident ThatThere Will Not Be Any Material Impact On Completion Of Work In Future.

Our Opinion Is Not Modified In Respect Of Above Stated Matters.

Report On Other Legal And Regulatory Requirements

1. As Required By The Companies (Auditor's Report) Order 2016 ("The Order")Issued By The Central Government Of India In Terms Of Sub-Section (11) Of Section 143 OfThe Act And On The Basis Of Such Checks Of The Books And Records Of The Company As WeConsidered Appropriate And According To The Information And Explanations Given To UsDuring The Course Of Audit We Give In The Annexure 'A' A Statement On The MattersSpecified In The Paragraphs 3 And 4 Of The Order.

2. 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) Except For The Effects Of The Matter Described In The Basis For Qualified OpinionParagraph In Our Opinion Proper Books Of Account As Required By Law Have Been Kept ByThe Company So Far As It Appears From Our Examination Of Those Books;

(C) 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;

(D) Except For The Effects Of The Matter Described In The Basis For Qualified OpinionParagraph In Our Opinion The Aforesaid Financial Statements Comply With The AccountingStandards Specified Under Section 133 Of The Act Read With Rule 7 Of The Companies(Accounts) Rules2014;

(E) The Matters Described In The Basis For "Qualified Opinion Paragraph"Above In Our Opinion May Have An Adverse Effect On The Functioning Of The Company;

(F) On The Basis Of The Written Representations Received From The Directors As On 31stMarch 2017 Taken On Record By The Board Of Directors None Of The Directors IsDisqualified As On31st March 2017 From Being Appointed As A Director In Terms Of Section164 (2) Of The Act;

(G) As Required By Section 143(3)(I) Of The Companies Act 2013 And Based On TheChecking Of The Books And Records Of The Company As We Considered Appropriate AndAccording To The Information And Explanations Given To Us Our Report On The InternalFinancial Controls Over Financial Reporting Is As Per Annexure 'B';

(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 Pending Litigations On Its FinancialPosition In Its Financial Statements - Refer Note No. 31 And Note No. 35 To The FinancialStatements.

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 No. 7 To The Financial Statements. The Company Does NotHave Any Derivative Contracts For Which There Were Any Material Foreseeable Losses;

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 Its Financial Statements As ToHoldings As Well As Dealing In Specified Bank Notes During The Period From 8th November2016 To 30th December 2016 And These Are In Accordance With The Books Of AccountsMaintained By The Company. (Refer Note No. 46)

For LODHA & CO.
Chartered Accountants
Firm's Registration No. 301051E
N.K. Lodha
Partner
Membership No.085155
Place: New Delhi
Date: 24th July 2017