Shah Construction Company Ltd.
|BSE: 509870||Sector: Infrastructure|
|NSE: N.A.||ISIN Code: N.A.|
|BSE LIVE 05:30 | 01 Jan||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
|BSE: 509870||Sector: Infrastructure|
|NSE: N.A.||ISIN Code: N.A.|
|BSE LIVE 05:30 | 01 Jan||Stock Is Not Traded.|
|NSE 05:30 | 01 Jan||Stock Is Not Traded.|
To the Members of Shah Construction Company Limited
Report on the Standalone Financial Statements
We have audited the accompanying financial statements of Shah Construction CompanyLimited which comprise the Balance Sheet as at March 31 2017 the Statement ofProfit and Loss and Cash Flow Statement for the year then ended and a summary ofsignificant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The management and Board of Directors of the Company are responsible for the mattersstated in Section 134 (5) of the Companies Act 2013 ('the act') with respect to thepreparation of these financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with rule 7 of Companies (Accounts) Rules2014.
This responsibility includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; design implementation and maintenance of adequate internal financial controlsthat are operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error
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 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 anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error In making those risk assessments the auditorconsiders 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 but not for the purpose of expressing anopinion on whether the Company has in place an adequate internal financial controls systemover financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by the Company's management and Board of Directors aswell as evaluating the overall presentation of 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.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin 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 31st March 2017 its loss and its cash flows for the year ended on that date.
We draw attention to the following matters in the Notes to the financialstatements:
(a) In our opinion subject to Note 21(iv) regarding valuation of Current AssetsCurrent Liabilities and Loans in Foreign currency at the rate Prevailing as on 30-06-1984the Balance Sheet Statement of Profit & Loss and Cash Flow Statement comply withAccounting Standards notified under section 133 of the Companies Act2013.
(b) Attention is also invited to the following notes in Notes
Our opinion 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 we further 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 Statement of Profit and Loss and Cash Flow Statement dealt withby this Repot are in agreement with the relevant books of account;
d) in our opinion the aforesaid financial statements comply with the applicableAccounting Standards specified under Section 133 of the Act read with relevant rulesissued thereunder.
e) on the basis of written representations received from the directors as on March 312017 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of Section 164(2) of theAct
f) 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 B' and
g) In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014:
i. The Company does not have any pending litigations which would impact its financialposition
ii. The Company did not have any long-term contracts including derivative contracts; assuch the question of commenting on any material foreseeable losses thereon does not arise
iii. There has not been an occasion in case of the Company during the year under reportto transfer any sums to the Investor Education and Protection Fund. The question of delayin transferring such sums does not arise.
iv. The Company has provided requisite disclosures in the Financial Statements asregards its holding and dealings in Specified Bank notes defined in the Notification S.O.3407 dated November 08 2016 of the Ministry of Finance during the period fromNovember 9 2016 to December 30 2016.Based on audit procedure performed andrepresentations provided to us by the management we report that the disclosures are inaccordance with the books of account maintained by the Company and as produced to us bythe management.
2. 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 section143 ofthe Act we give in the Annexure A' a statement on the' matters Specified inparagraphs 3 and 4 of the Order to the extent applicable.
TO THEINDEPENDENT AUDITORS' REPORT ON THE FINANCIAL STATEMENTS OF SHAH CONTRUCTIONCOMPANY LIMITED
Annexure referred to in paragraph 2 under Report on other Legal and RegulatoryRequirements' section of our Report of even date to the members of Shah ConstructionCompany Limited on the Financial Statements of the company for the year ended 31st March2017
On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we report that:
i. (a). The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets ;
(b). As explained to us fixed assets have been physically verified by the managementat regular intervals; as informed to us no material discrepancies were noticed on suchverification. In our opinion the periodicity of physical verification is reasonable havingregard to the size of the Company and the nature of Assets. Fixed Assets at Foreign Sitescosting Rs.7.32 crores in Iraq are not physically verifiable.
(c). According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.
ii. In respect of its inventories :
The Company is a Construction Company having a central stores in Mumbai. The Managementhas claimed to have conducted physical verification of stores & materials required forlocal jobs at reasonable intervals during accounting year. In our opinion the frequencyof verification is reasonable and as explained to us no material discrepancies werenoticed on physical verification.
iii. The company has not granted any loans secured or unsecured to companies firms orother parties covered in the register maintained under section 189 of the CompaniesAct2013 (the Act).
iv. In our opinion and according to the information and explanations given to us thecompany has complied with the provisions of sections 185 and 186 of the companies Act2013 in respect of grant of Loans making investments and providing guarantees andsecurities.
v. According to the information and explanations given to us the Company has notaccepted any deposits from the public. Therefore the provisions of Clause (v) ofparagraph 3 of the order is not applicable to the company.
vi. As informed to us the Central Government has not prescribed maintenance of costrecords under Section 148(1) of the Act
vii. (a) According to the information and explanations given to us and based on therecords of the company examined by us the company is regular in depositing the undisputedstatutory dues including Provident Fund Employees' State Insurance Income-taxSales-tax Value Added Tax Service Tax Custom Duty Service Tax Excise Duty Cess andother material statutory dues as applicable with the appropriate authorities in India.According to the information and explanations given to us no undisputed amounts payablein respect of Provident Fund Employees' State Insurance Income-tax Sales-tax ValueAdded Tax Service Tax Custom Duty Service Tax Excise Duty Cess and other materialstatutory dues were in arrears as at 31 March2017 for a period of more than six monthsfrom the date they became payable.
(b) According to the information and explanations given to us and based on the recordsof the company examined by us there are no dues of Provident Fund Employees' StateInsurance Income-tax Sales-tax Value Added Tax Service Tax Custom Duty Service TaxExcise Duty Cess and other material statutory dues which have not been deposited onaccount of any disputes except Income tax demand of Rs.49.85 Lakhs for Financial years2007-082010-11 2012-13 and 2013-14.
viii. according to the records of the company examined by us and as per the informationand explanations given to us the company has not availed of any loans from any financialinstitution or banks and government and has not issued debentures. accordingly paragraph3 (viii) of the order is not applicable to the company.
ix. In our opinion and according to the information and explanations given to us theCompany has not raised money by way of debt instruments and the term loans during theyear. Accordingly paragraph 3 (ix) of the order is not applicable to the company.
x. In our opinion and according to the information and explanations given to us nomaterial fraud by the company or on the company by its officers or employees has beennoticed or reported during the year.
xi. The company has not paid any managerial remuneration during the year and hencereporting under Clause of Paragraph 3 of the order is not applicable to the company.
xii. The Company is not a Nidhi Company and hence reporting under Clause (xii) ofParagraph 3 of the order is not applicable to the company.
xiii. In our opinion and according to the information and explanations given to us thecompany's transactions with its related party are in compliance with sections 177 and 188of the Companies act2013 wherever applicable and details of related party transactionshave been disclosed in the financial statements etc. as required by the applicableaccounting standards. xiv. During the year the company has not made preferential allotmentor private placement of shares or fully or partly convertible debentures and hencereporting under clause (xiv) of the order 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 persons connected with him and hence reporting under clause (xv) of the orderis not applicable to the company.
xvi. In our opinion and according to the information and explanations provided to usthe company is not required to be registered under section 45-IA of the Reserve Bank ofIndia Act1934.
To the Independent Auditors' Report on the Financial Statements of Shah ConstructionCompany Limited
(Referred to in paragraph 1 (f) 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 ShahConstruction Company Limited ("the Company") as of March 31 2017 inconjunction with our audit of the financial statements of the Company for the year endedon 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 Reporting (the"Guidance Note") issued by the Institute of Chartered Accountants of India.These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.
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 and the Standards on Auditing prescribed under Section 143(10) ofthe Companies Act 2013 to the extent applicable to an audit of internal financialcontrols. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated 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 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 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 and paymentsof the company are being made only in accordance with authorizations of management anddirectors of the company; and (3) provide reasonable assurance regarding prevention ortimely detection of unauthorized acquisition use or disposition of the company's assetsthat 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.
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.