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Puravankara Ltd.

BSE: 532891 Sector: Infrastructure
NSE: PURVA ISIN Code: INE323I01011
BSE LIVE 15:40 | 18 Aug 72.20 0.70
(0.98%)
OPEN

71.00

HIGH

73.30

LOW

70.65

NSE 15:59 | 18 Aug 71.60 -2.00
(-2.72%)
OPEN

70.95

HIGH

72.40

LOW

70.35

OPEN 71.00
PREVIOUS CLOSE 71.50
VOLUME 22509
52-Week high 79.95
52-Week low 37.20
P/E 16.04
Mkt Cap.(Rs cr) 1,712
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 71.00
CLOSE 71.50
VOLUME 22509
52-Week high 79.95
52-Week low 37.20
P/E 16.04
Mkt Cap.(Rs cr) 1,712
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Puravankara Ltd. (PURVA) - Auditors Report

Company auditors report

To the Members of Puravankara Projects Limited

1. We have audited the accompanying standalone financial statements of PuravankaraProjects Limited (the ‘Company’) which comprise the Balance Sheet as at 31March 2016 the Statement of Profit and Loss and Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Standalone Financial Statements

2. The Company’s Board of Directors is responsible for the matters stated inSection 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014 (as amended). This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act; safeguarding theassets of the Company; preventing and detecting frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial 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

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

4. 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.

5. 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 standalone financial statements are free from material misstatement.

6. An audit involves performing procedures to obtain audit evidence about the amountsand the 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 controls 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.

7. 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

8. 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.

Report on Other Legal and Regulatory Requirements

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

10. As required by Section 143(3) of the Act we report that: a. we have sought andobtained all the information and explanations which to the best of our knowledge andbelief 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 standalone financial statements dealt with by this report are in agreement withthe books of account;

d. 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 (as amended);

e. on the basis of the written representations received from the directors as on 31March 2016 and 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;

f. we have also audited the internal financial controls over financial reporting(IFCoFR) of the Company as of 31 March 2016 in conjunction with our audit of thestandalone financial statements of the Company for the year ended on that date and ourreport dated 27 May 2016 as per Annexure II expressed a qualified opinion.

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 and according to the explanations given to us:

(i) As detailed in Note 30 to the standalone financial statements the Company hasdisclosed the impact of pending litigations on its standalone financial position;

(ii) the Company did not have any long-term contracts including derivative contractsfor 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

For Walker Chandiok & Co LLP

Chartered Accountants

Firm Registration No.: 001076N/N500013

per Sanjay Banthia

Partner

Membership No.: 061068

Mumbai

27 May 2016

Annexure I to the Independent Auditor’s Report of even date to the members ofPuravankara Projects Limited on the standalone financial statements for the year ended 31March 2016 Annexure I

Independent Auditor’s Report On Companies (Auditor’s Report) Order 2016(‘the order’) under Sub-Section II of section 143 of the Companies Act 2013(‘the Act’)

Based on the audit procedures performed for the purpose of reporting a true and fairview on the standalone financial statements of the Company and taking into considerationthe information and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit we report that:

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

(b) The Company has a regular program of physical verification of its fixed assetsunder which fixed assets are verified in a phased manner over a period of three yearswhich in our opinion is reasonable having regard to the size of the Company and thenature of its assets. In accordance with this program certain fixed assets were verifiedduring the year and no material discrepancies were noticed on such verification.

(c) The title deeds of all the immovable properties are held in the name of theCompany.

(ii) The management has conducted physical verification of inventory at reasonableintervals during the year and no material discrepancies between physical inventory andbook records were noticed on physical verification.

(iii) The Company has granted interest free and interest bearing unsecured loans tocompanies/firms/LLPs covered in the register maintained under Section 189 of the Act; andwith respect to the same:

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

(b) The schedule of repayment of the principal and the payment of the interest has notbeen stipulated and hence we are unable to comment as to whether repayments/receipts ofthe principal amount and the interest are regular.

(c) In the absence of stipulated schedule of repayment of principal and payment ofinterest we are unable to comment as to whether there is any amount which is overdue formore than 90 days and whether reasonable steps have been taken by the Company for recoveryof the principal amount and interest.

(iv) In our opinion the Company has complied with the provisions of sections 185 and186 of the Act in respect of loans investments guarantees and security.

(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.

(vi) We 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 underclause (d) of subsection (1) of Section 148 of the Act in respect of Company’sproducts/services and are of the opinion that prima facie the prescribed accounts andrecords have been made and maintained. However we have not made a detailed examination ofthe cost records with a view to determine whether they are accurate or complete.

(vii) (a) The Company is generally regular in depositing undisputed statutory duesincluding provident fund employees’ state insurance income-tax sales-tax servicetax duty of customs duty of excise value added tax cess and other material statutorydues as applicable to the appropriate authorities. Further no undisputed amountspayable in respect thereof were outstanding at the year-end for a period of more than sixmonths from the date they become payable.

(b) The dues outstanding in respect of income-tax sales-tax wealth tax service taxduty of custom duty of excise cess on account of any dispute are as follows:

Name of the statute Nature of dues Amount Amount Paid Under Protest Period to which the amount relates Forum where dispute is pending
The Karnataka Value Added Tax Act 2003 Value Added Tax (including interest & penalty on an approximate basis) 8721672 8197122 2005 – 2007 Karnataka Appellate
Tribunal
13919162 6959582 2008-2011 The Joint Commissioner (Appeals)
Chapter V of the Finance Act 1994 Irregular shifting from Construction of Complex service to Works contract service including Interest & penalty 56995015 - 2007-2008 Customs Excise & Service Tax Appellate Tribunal Bangalore
Service tax not paid on other services 22325348 - 2002-2006 Customs Excise & Service Tax Appellate Tribunal Bangalore
Income-Tax Act 1961 Interest on delayed payment of TDS 704824 704824 2009-2010 Commissioner of Income Tax (Appeals)
Penalty under Section 271(1)(c) 25436199 - 2005-2007 High Court of Bombay
Disallowance of deduction under section 80-IB 360412780 - 2012-2014 Commissioner of Income Tax (Appeals)

Note: During the earlier years the Company received an order from the Income TaxAppellate Tribunal (ITAT) directing the Assessing Officer to carry-out the denovoassessment of the income for fiscal 2004 to 2009 in relation to the claim under Section80-IB for a project of the Company allowing proportionate allowance for eligible unitsunder Section 80-IB. The department has filed an appeal against the said ITAT order whichis pending before the High Court of Bombay.

(viii) The Company has not defaulted in repayment of loans or borrowings to any bankduring the year. The Company did not have any outstanding debentures or loan fromfinancial institution and government during the year.

(ix) The Company did not raise moneys by way of initial public offer or further publicoffer (including debt instruments). In our opinion the term loans were applied for thepurpose for which the loans were obtained though idle/surplus funds which were notrequired for immediate utilization were temporarily used for the purpose other than forwhich the loan was sanctioned but were ultimately utilized for the stated end-use.

(x) No fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the period covered by our audit.

(xi) In our opinion managerial remuneration has been paid in accordance with therequisite approvals mandated by the provisions of section 197 of the Act read withSchedule V to the Act.

(xii) In our opinion the Company is not a Nidhi Company. Accordingly clause 3(xii) ofthe Order is not applicable.

(xiii) In our opinion all transactions with the related parties are in compliance withsections 177 and 188 of Act where applicable and the requisite details have beendisclosed in the financial statements etc. as required by the applicable accountingstandards.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures.

(xv) The Company has not entered into any non-cash transactions with directors orpersons connected with them.

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

For Walker Chandiok & Co LLP

Chartered Accountants

Firm Registration No.: 001076N/N500013

per Sanjay Banthia

Partner

Membership No.: 061068

Mumbai

27 May 2016

Annexure II to the Independent Auditor’s Report of even date to the members ofPuravankara Projects Limited on the standalone financial statements for the year ended 31March 2016 Annexure II

Independent Auditor’s Report on the Internal Financial Controls under Clause (i)of Sub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

1. In conjunction with our audit of the standalone financial statements of PuravankaraProjects Limited ("the Company") as at and for the year ended 31 March 2016 wehave audited the internal financial controls over financial reporting (IFCoFR) of theCompany as at that date.

Management’s Responsibility for Internal Financial Controls

2. The Company’s Board of Directors is responsible for establishing andmaintaining internal financial controls based on the control criteria in accordance withthe Internal control framework defined in Annexure I to SA 315 "Identifying andAssessing the Risk of Material Misstatement Through Understanding the Entity and itsEnvironment" ("the framework"). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of the company’s 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 Act.

Auditors’ Responsibility

3. Our responsibility is to express an opinion on the Company’s IFCoFR based onour audit. We conducted our audit in accordance with the Standards on Auditing issued bythe Institute of Chartered Accountants of India (ICAI) and deemed to be prescribed undersection 143(10) of the Act to the extent applicable to an audit of IFCoFR and theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") issued by the ICAI. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate IFCoFR were established and maintained and ifsuch controls operated effectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidence about the adequacyof the IFCoFR and their operating effectiveness. Our audit of IFCoFR included obtaining anunderstanding of IFCoFR assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor’s judgment includingthe assessment of the risks of material misstatement of the financial statements whetherdue to fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s IFCoFR.

Meaning of Internal Financial Controls over Financial Reporting

6. A company’s IFCoFR is a process designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of financialstatements for external purposes in accordance with generally accepted accountingprinciples. A company’s IFCoFR includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company’s assets that could have a material effect on thefinancial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

7. Because of the inherent limitations of IFCoFR including the possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any evaluation of the IFCoFRto future periods are subject to the risk that IFCoFR may become inadequate because ofchanges in conditions or that the degree of compliance with the policies or proceduresmay deteriorate.

Basis of Qualified Opinion

8. According to the information and explanations given to us and based on our auditthe following material weakness has been identified in the adequacy and operatingeffectiveness of the Company’s IFCoFR as at 31 March 2016:

The Company did not have adequate internal financial controls over financial reportingwith respect to supervisory and review controls of periodic reconciliation includingtimely resolution thereof of advance received from customers and vendor balancesprimarily retention claims payable to the subsidiary ledgers which could potentiallyresult in material misstatement in the value of the Company’s trade payables andother current liabilities prior period items and resultant impact on the profit after taxand the reserves and surplus.

A ‘material weakness’ is a deficiency or a combination of deficiencies ininternal financial control over financial reporting such that there is a reasonablepossibility that a material misstatement of the company’s annual or interim financialstatements will not be prevented or detected on a timely basis.

Qualified Opinion

9. In our opinion except for the effects of the material weakness described above inthe Basis for Qualified Opinion paragraph the Company has in all material respectsmaintained adequate

IFCoFR and such IFCoFR were operating effectively as at 31 March 2016 based on thecontrol criteria established in accordance with the framework.

10. We have considered the material weakness identified and reported above indetermining the nature timing and extent of audit tests applied in our audit of the 31March 2016 standalone financial statements of the Company and the material weakness do notaffect our opinion on the standalone financial statements of the Company and we haveissued an unqualified opinion on the standalone financial statements.

For Walker Chandiok & Co LLP

Chartered Accountants

Firm Registration No.: 001076N/N500013

per Sanjay Banthia

Partner

Membership No.: 061068

Mumbai

27 May 2016