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PVP Ventures Ltd.

BSE: 517556 Sector: Infrastructure
NSE: PVP ISIN Code: INE362A01016
BSE LIVE 15:27 | 25 Sep 4.90 -0.10
(-2.00%)
OPEN

4.85

HIGH

4.95

LOW

4.65

NSE 15:53 | 25 Sep 4.80 -0.10
(-2.04%)
OPEN

4.90

HIGH

4.90

LOW

4.60

OPEN 4.85
PREVIOUS CLOSE 5.00
VOLUME 61245
52-Week high 7.86
52-Week low 4.11
P/E 4.58
Mkt Cap.(Rs cr) 120
Buy Price 4.90
Buy Qty 823.00
Sell Price 4.95
Sell Qty 8000.00
OPEN 4.85
CLOSE 5.00
VOLUME 61245
52-Week high 7.86
52-Week low 4.11
P/E 4.58
Mkt Cap.(Rs cr) 120
Buy Price 4.90
Buy Qty 823.00
Sell Price 4.95
Sell Qty 8000.00

PVP Ventures Ltd. (PVP) - Auditors Report

Company auditors report

To the Shareholders of PVP Ventures Limited Chennai

REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying financial statements of PVP Ventures Limited (hereinafter referred to "the Company") which comprise the Balance Sheet as at 31stMarch 2016 the Statement of Profit and Loss the Cash Flow Statement for the year thenended and a summary of significant accounting policies and other explanatory information(hereinafter referred to as "the Financial Statements).

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 preparation ofthese financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified undersection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 asamended. 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; the selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and the design implementation and maintenance of 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 thereunder.

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 the ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosure in the financial statements. These procedures selected depend on theauditor’s judgment including the assessment of the risk 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 Board of Directors as well asevaluating the overall presentation of the financial statements.

We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our qualified audit opinion on the financial statements.

BASIS FOR QUALIFIED OPINION

Attention is drawn to the (a) Note 12 in notes to the financial statements with regardto the investment in equity shares of subsidiary companies with provision made (b) Note13 loans and advances to subsidiary companies. The management is of the view thatconsidering the market value of the assets and expected cash flows from the business ofthese subsidiary companies the provision already made are adequate. However consideringthe networth of the subsidiary companies is negative dependence on the parent to continueas a going concern absence of cash flows delay in commencement of projects and otherrelated factors indicate that the existence of material uncertainty in carrying the valueof investments and loans and advances at cost less provision already made. Hence we wereunable to determine whether any adjustments to these net carrying amounts are necessaryand additional provision for diminution if any to be made are not quantifiable.

QUALIFIED OPINION

In our opinion and to the best of our information and according to the explanationsgiven to us except to the possible effects of the matters described in Basis forQualified Opinion paragraph the aforesaid financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at 31st March 2016 and their Profit and its cash flows for the year ended onthat date.

EMPHASIS OF MATTERS

We draw the attention to (a) the Note No.24.6 with regard to the Income Taxes disputedbefore respective authorities which describes the uncertainty related to the outcome ofthe Appeals filed against the Orders of the Authorities; and (b) the Note No.24.6.4 withregard to the security by way of mortgage of property given to the lenders for theborrowings by other body corporates and they have not repaid the loan with interest to thelenders. All these items describe the uncertainty related to the outcome of the futureevents. Our opinion in respect of these matters is not modified.

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 we give in the Annexure-A a statement on the matters specified in paragraphs 3and 4 of the Order to the extent applicable.

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 purpose of our audit.

b. in our opinion proper books of account as required by law have been kept by theCompany so far as 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 relevant books of account.

d. except for the possible effects of the matter described in Basis for QualifiedOpinion paragraph in our opinion the aforesaid 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 written representation received from the Directors as on 31st March2016 taken on record by the Board of Directors none of the directors of the Company isdisqualified as on 31st March 2016 from being appointed as a director in terms ofsection 164(2) of the Act;

f. with respect to the adequacy of the internal financial controls over the financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in Annexure-B; and

g. With respect to the other matters to be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditor’s) Rules 2014 asamended in our opinion and to the best of our information and according to theexplanations given to us:

i) The Company has disclosed the impact of pending litigations on its financialstatements – Refer Note: 24.6 to the financial statements

ii) The Company did not have long term contracts including derivative contracts forwhich there were any material foreseeable losses.

iii) There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

Camp: Hyderabad for M/s CNGSN & ASSOCIATES LLP
Date : 23rd May 2016 CHARTERED ACCOUNTANTS
Firm Registration No: 004915S

ANNEXURE-A TO THE INDEPENDENT AUDITORS’ REPORT

(Referred to in paragraph 1 of Report on Other Legal and Regulatory Requirements in ourIndependent Auditors’ Report of even date)

In terms of the information and explanations sought by us and given by the Company andthe books and records examined by us in the normal course of audit and to the best of ourknowledge and belief we state that:

1 a. The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

b. The company has physically verified the fixed assets at reasonable intervals andthere are no discrepancies noticed on such verification.

c. The company’s fixed assets do not have any immovable properties.

2. The company holds inventory of Land. The physical verification of the lands wasconducted at reasonable intervals by the management and there is no material discrepanciesnoticed on such verification.

3. During the year the company has granted unsecured loans to the parties covered inthe register maintained under section 189 of the Act. The outstanding loans Rs.58843.71lakhs is due from four parties. It is represented that these loans are repayable ondemand. The other clauses regarding repayment of principal interest and overdue are notapplicable.

4. The company has complied with the provisions of section 185 and 186 of the CompaniesAct in respect of securities and guarantees given.

5. The Company has not accepted deposits from public during this year. Therefore theprovision of clause 3 (v) of the Companies (Auditor’s Report) Order 2016 are notapplicable to the Company for the year under audit.

6. The Company has made and maintained the cost records prescribed by the CentralGovernment under sub-section (1) of Section 148 of the Act.

7. a. The Company is depositing with delays undisputed statutory dues withappropriate authorities like Provident Fund Employee’s State insurance Income-taxSales-tax Wealth-tax Service tax Customs Duty Excise Duty Value Added Tax Cesswherever applicable. The ULT tax of Rs.9.03 lakhs is arrears of outstanding dues as at31st March 2016 for a period of more than six months from the date they become payable.

b. The details of disputed statutory dues which have not been deposited on account ofdispute are as under:

Nature Of Statue Nature Of Dues Amount Rs In Lakhs Period To Which Amount Relates Forum Where Dispute Is Pending
Income Tax Act Income Tax 78.21 AY 2007-08 ITAT Hyderabad
Income Tax Act Income Tax 1480.00 AY 2008-09 High Court Chennai
Income Tax Act Penalty 1276.58 AY 2008-09 CIT-A Chennai
Income Tax Act Income Tax 13.24 AY 2009-10 CIT-A Chennai
Income Tax Act Income Tax 493.43 AY 2013-14 CIT-A Chennai

8. The company has not defaulted in repayment of loans or borrowings from financialinstitutions bank or government. The interest on Debentures amounting to Rs.963.45 lakhsdue and not paid for the period from 15-12-2015.

9. The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments). The term loans obtained were applied for the purposefor which those were raised.

10. There are no fraud by the company or any fraud on the company by its officers oremployees and hence the provision of clause 3 (x) of the Companies (Auditor’s Report)Order 2016 are not applicable to the Company for the year under audit.

11. The company has paid managerial remuneration in accordance with the provisions ofsection 197 read with Schedule V to the Companies Act.

12. The company is not a Nidhi company and hence the provision of clause 3 (xii) of theCompanies (Auditor’s Report) Order 2016 are not applicable to the Company for theyear under audit.

13. The transactions with the related parties are in compliance with section 177 and188 of the Act wherever applicable and the details have been disclosed in the financialstatements as required by the applicable accounting standards.

14. The company has not made any preferential allotment of shares or private placementof shares or convertible debentures during the year and hence the provision of clause 3(xiv) of the Companies (Auditor’s Report) Order 2016 are not applicable to theCompany for the year under audit.

15. The company is not entered into any non-cash transactions with directors or personsconnected with them and hence the provision of clause 3 (xv) of the Companies(Auditor’s Report) Order 2016 are not applicable to the Company for the year underaudit.

16. The company is not required to be registered under section 45-IA of Reserve Bank ofIndia Act 1934 and hence the provision of clause 3 (xvi) of the Companies (Auditor’sReport) Order 2016 are not applicable to the Company for the year under audit.

for M/s CNGSN & ASSOCIATES LLP
CHARTERED ACCOUNTANTS
Camp: Hyderabad Firm Registration No: 004915S
Date : 23rd May 2016 Sd/-
R. Thirumalmarugan
Partner
Membership No: 200102

ANNEXURE - B TO THE AUDITORS’ REPORT

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act") (Referred to in paragraph 2(f) ofReport on Other Legal and Regulatory Requirements in our Independent Auditors’ Reportof even date)

We have audited the internal financial controls over financial reporting of PVPVentures Limited ("the Company") as on 31 March 2016 in conjunction with ouraudit of the 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 (‘ICAI’). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company’s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required 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") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively 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 judgment 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.

QUALIFIED OPINION

According to the information and explanations given to us and based on our audit thefollowing weakness has been identified as at 31st March 2016. "The Companiesinternal control system for advance given to subsidiary companies and investments insubsidiary companies which could potentially result in existence of uncertainty that maycast significant doubt about the recoverability or otherwise of these advances andinvestments and thereby non provision for the shortfall as at the balance sheet date couldnot have been reasonably established".

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 financial statementswill not be prevented or detected on a timely basis.

In our opinion except for the possible effects of the material weaknesses describedabove on the achievement of the objectives of the control criteria the Company hasmaintained in all material respects adequate internal financial controls system overfinancial reporting and such internal financial controls over financial reporting wereoperating effectively as at 31 March 2016 based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note issued by the ICAI.

We have considered the material weaknesses identified and reported above in determiningthe nature timing and extent of audit tests applied in our audit of the March 31 2016standalone financial statements of the Company and the material weaknesses does affectour opinion on the standalone financial statements of the Company.

for M/s CNGSN & ASSOCIATES LLP
CHARTERED ACCOUNTANTS
Camp: Hyderabad Firm Registration No: 004915S
Date : 23rd May 2016 Sd/-
R. Thirumalmarugan
Partner
Membership No: 200102