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Puravankara Ltd.

BSE: 532891 Sector: Infrastructure
NSE: PURVA ISIN Code: INE323I01011
BSE LIVE 15:59 | 18 Oct 80.35 -0.55
(-0.68%)
OPEN

80.40

HIGH

82.00

LOW

79.60

NSE 15:56 | 18 Oct 80.15 -0.30
(-0.37%)
OPEN

80.80

HIGH

82.20

LOW

79.60

OPEN 80.40
PREVIOUS CLOSE 80.90
VOLUME 17407
52-Week high 87.50
52-Week low 37.20
P/E 17.86
Mkt Cap.(Rs cr) 1,905
Buy Price 80.35
Buy Qty 368.00
Sell Price 0.00
Sell Qty 0.00
OPEN 80.40
CLOSE 80.90
VOLUME 17407
52-Week high 87.50
52-Week low 37.20
P/E 17.86
Mkt Cap.(Rs cr) 1,905
Buy Price 80.35
Buy Qty 368.00
Sell Price 0.00
Sell Qty 0.00

Puravankara Ltd. (PURVA) - Auditors Report

Company auditors report

To the Members of

Puravankara Limited (formerly Puravankara Projects Limited)

Report on the Standalone Financial Statements

1. We have audited the accompanying standalone financial statements of PuravankaraLimited (formerly Puravankara Projects Limited) (‘the Company') which comprise theBalance Sheet as at 31 March 2017 the Statement of Profit and Loss (including OtherComprehensive Income) the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and a summary of the significant accounting policies and otherexplanatory information.

Management's Responsibility for the Standalone Financial Statements

2. 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 state ofaffairs (financial position) profit or loss (financial performance including othercomprehensive income) cash flows and changes in equity of the Company in accordance withthe accounting principles generally accepted in India including the Indian AccountingStandards (‘Ind AS') specified under Section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities; selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent; and design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statements that give a true andfair view and are free from material misstatement 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 whetherthese 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 of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial controls 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.

7. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on these 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 including Ind AS specified under Section133 of the Act of the state of affairs (financial position) of the Company as at 31 March2017 and its profit (financial performance including other comprehensive income) itscash flows and the changes in equity for the year ended on that date.

Other Matter(s)

9. The Company had prepared separate sets of statutory financial statements for theyear ended 31 March 2016 and 31 March 2015 in accordance with {Accounting Standardsprescribed under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2016 on which we issued auditor's reports to the shareholders of the Company dated27 May 2016 and

15 May 2015 respectively. These financial statements have been adjusted for thedifferences in the accounting principles adopted by the Company on transition to Ind ASwhich have also been audited by us. Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

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

11. Further to our comments in Annexure 1 as required by Section 143(3) of the Act wereport that: a) we have sought and obtained all the information and explanations which tothe best of our knowledge and belief were necessary for the purpose of our audit; b) Inour opinion proper books of account as required by law have been kept by the Company sofar as it appears from our examination of those books. c) The standalone financialstatements dealt with by this report are in agreement with the books of account. d) In ouropinion the aforesaid standalone financial statements comply with Ind AS specified underSection 133 of the Act e) On the basis of the written representations received from thedirectors and taken on record by the Board of Directors none of the directors aredisqualified as on 31 March 2017 from being appointed as a director in terms of Section164(2) of the Act; f ) We have also audited the internal financial controls over financialreporting (IFCoFR) of the Company as on 31 March 2017 in conjunction with our audit of thestandalone financial statements of the Company for the year ended on that date and ourreport dated 29 May 2017 as per Annexure I expressed unqualified opinion. g) With respectto the other matters to be included in the Auditor's Report in accordance with Rule 11 ofthe Companies (Audit and Auditors) Rules 2017 in our opinion and to the best of ourinformation and according to the explanations given to us: i. The Company as detailed inNote 39 to the standalone financial statements has disclosed the impact of pendinglitigations on its financial position. ii. There has been no delay in transferringamounts required to be transferred to the Investor Education and Protection Fund by theCompany iii. The company as detailed in Note 40 to the standalone financial statementshas made requisite disclosures in these standalone financial statements as to holdings aswell as dealings in Specified Bank Notes during the period from 8 November 2016 to 30December 2016. Based on the audit procedures performed and taking into consideration theinformation and explanations given to us in our opinion these are in accordance with thebooks of account maintained by the company.

For Walker Chandiok & Co LLP
Chartered Accountants
Firm's Registration No.: 001076N/N500013
per Sanjay Banthia
Partner
Membership No.: 061068
Place: Bengaluru
Date: 29 May 2017

Annexure I to the Independent Auditor's Report of even date to the members ofPuravankara Limited (formerly Puravankara Projects Limited) on the financial statementsfor the year ended 31 March 2017

Annexure I

Independent Auditor's report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

1. In conjunction with our audit of the financial statements of Puravankara Limited(formerly Puravankara Projects Limited) ("the Company") as at and for the yearended 31 March 2017 we have audited the internal financial controls over financialreporting ("IFCoFR") of the Company as at that date.

Management's Responsibility for Internal Financial Controls

2. The Company's Board of Directors is responsible for establishing and maintaininginternal financial controls based on the control criteria in accordance with the Internalcontrol framework defined in Annexure I to SA 315 "Identifying and Assessing the Riskof Material Misstatement Through Understanding the Entity and its Environment"("the framework"). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of the Company's business including adherenceto Company's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.

Auditors' Responsibility

3. Our responsibility is to express an opinion on the Company's IFCoFR based on ouraudit. We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India ("the ICAI") and deemed to beprescribed under section 143(10) of the Act to the extent applicable to an audit ofIFCoFR and the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting ("the Guidance Note") issued by the ICAI. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate IFCoFR were established andmaintained and if such 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 judgement including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.

5. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our qualified 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 assurance regardingthe reliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A company'sIFCoFR include 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

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.

Opinion

8. In our opinion the Company has in all material respects adequate internalfinancial controls over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31 March 2017 based on theframework.

For Walker Chandiok & Co LLP

Chartered Accountants

Firm's Registration No.: 001076N/N500013

per Sanjay Banthia

Partner

Membership No.: 061068

Place: Bengaluru Date: 29 May 2017

AnnexureIItotheIndependentAuditor'sReportofevendatetothemembersofPuravankara Limited(formerly Puravankara Projects Limited) on the standalone financial statements for theyear ended 31 March 2017

Annexure II

Based on the audit procedures performed for the purpose of reporting a true and fairview on the financial statements of the Company and taking into consideration theinformation and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe report that: (i) (a) The Company has maintained proper records showing fullparticulars including quantitative 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. The fixed assets have been physically verified by the managementduring the year and material discrepancies were noticed on such verification. These havebeen properly dealt with in the books of account.

(c) The title deeds of all the immovable properties (which are included under the head‘Property plant and equipment') are held in the name of the Company.

(ii) In our opinion the management has conducted physical verification of inventory atreasonable intervals during the year and no material discrepancies between physicalinventory and book records were noticed on physical verification.

(iii) The Company has granted interest free and interest bearing unsecured loans tocompanies/firms/ Limited Liability Partnerships (LLPs)/ other parties covered in theregister maintained under Section 189 of the Act; and with respect to the same: (a) in ouropinion the terms and conditions of grant of such loans are not prima facie prejudicialto 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 stipulatedschedule of repayment of principal and payment of interest we are unable to comment as towhether there is any amount which is overdue for more than 90 days and whether reasonablesteps have been taken by the Company for recovery of 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) In our opinion the Company has not accepted any deposits within the meaning ofSections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended). 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 sub-section (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) Undisputed statutory dues including provident fund employees' stateinsurance income-tax sales-tax service tax duty of customs duty of excise valueadded tax cess and other material statutory dues as applicable have generally beenregularly deposited to the appropriate authorities though there has been a slight delayin a few cases. Further no undisputed amounts payable in respect thereof were outstandingat the year-end for a period of more than six months from the date they became payable.(b) The dues outstanding in respect of income-tax sales-tax service-tax duty ofcustoms duty of excise and value added tax on account of any dispute are as follows:

Name of the statute Nature of dues Amount (H) Amount paid under Protest (H) Period to which the amount relates Forum where dispute is pending
The Karnataka Value Added Tax Act. Value Added Tax (including interest & penalty on an approximate basis) 8721672 8721672 2005-07 Karnataka Appellate Tribunal
77494569 26032204 2008-12 The Joint Commissioner of Commercial taxes (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
Chapter V of the Finance Act 1994 Service tax not paid on other services 22325348 - 2002-2006 Customs Excise & Service Tax Appellate Tribunal Bangalore
Chapter V of the Finance Act 1994 Service tax not paid on other services 2482000 92700 2008-09 Commissioner of Service Tax (Appeals)
Income-Tax Act 1961 Interest on delayed payment of TDS 704824 704824 2009-2010 Commissioner of Income Tax (Appeals)
Income-Tax Act 1961 Penalty under Section 271(1)(c) 25436199 - 2005-2007 High Court of Bombay
Income-Tax Act 1961 Disallowance of deduction u/s 80IB 360412780 - 2012-14 Commissioner of Income Tax (Appeals)

(viii) The Company has not defaulted in repayment of loans or borrowings to anyfinancial institution or a bank or government or any dues to debenture-holders during theyear.

(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) Managerial remuneration has been paid by the company 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 provisions ofclause 3(xii) of the Order are 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 Ind AS.

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

(xv) In our opinion the Company has not entered into any non-cash transactions withthe directors or persons connected with them covered under Section 192 of the Act.

(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's Registration No.: 001076N/N500013
per Sanjay Banthia
Partner
Membership No.: 061068
Place: Bengaluru
Date: 29 May 2017