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Tantia Constructions Ltd.

BSE: 532738 Sector: Infrastructure
NSE: TANTIACONS ISIN Code: INE388G01018
BSE LIVE 14:59 | 13 Dec 18.25 -0.95
(-4.95%)
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19.50

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19.50

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18.25

NSE 15:31 | 13 Dec 17.75 -0.85
(-4.57%)
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18.60

HIGH

18.60

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17.70

OPEN 19.50
PREVIOUS CLOSE 19.20
VOLUME 1500
52-Week high 25.05
52-Week low 14.55
P/E
Mkt Cap.(Rs cr) 52
Buy Price 0.00
Buy Qty 0.00
Sell Price 18.25
Sell Qty 1990.00
OPEN 19.50
CLOSE 19.20
VOLUME 1500
52-Week high 25.05
52-Week low 14.55
P/E
Mkt Cap.(Rs cr) 52
Buy Price 0.00
Buy Qty 0.00
Sell Price 18.25
Sell Qty 1990.00

Tantia Constructions Ltd. (TANTIACONS) - Auditors Report

Company auditors report

To The Members of Tantia Constructions Limited

1. Report on the Standalone Financial Statements

We have audited the accompanying standalone financial Statements of TantiaConstructions Limited ("the Company") which comprises the Balance Sheet asat March 31 2016 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.

2. Management’s Responsibility for the Standalone 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 standalone 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 the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding of 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.

3. Auditor’s Responsibility

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

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 and the Order under Section 143(11)of the Act.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India. Those Standards and pronouncements requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the financial statements are free from materialmisstatement.

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 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 Directors as well as evaluating theoverall 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 standalone financial statements.

4. Opinion:

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 March 31 2016 and its loss and its cash flows for the year ended on that date.

5. Emphasis of Matters We draw attention to:

a) Para vii to the Annexure A to the Independent Auditors Report regarding delay inpayment of statutory dues including dues outstanding for more than 6 months.

b) Note 42 to the Financial Statement in relation to excess payment of ManagerialRemuneration for the Financial Year 2013-14 for which the Management is in the process oftaking approval of the Central Government. During the financial year 2015-16 an amount ofRs. 90 lakhs have been paid / provided as Remuneration to the Chairman and ManagingDirector which exceeded the eligible limit by Rs. 30 lakhs for which necessaryapproval from the shareholders is being obtained by the Company.

c) Note 8 to the Financial Statement regarding nonpayment of short term loan fromVijaya Bank against which the Bank has issued notice under the SARFAESI ACT (2002) and hastaken symbolic possession of land mortgaged with them for the said loan.

Our opinion is not qualified in respect of the above matters.

6. Report on Other Legal and Regulatory Requirements

i. As required by the Companies (Auditor’s Report) Order 2016 issued by theCentral Government of India in terms of sub-section (11) of section 143 of the Act (hereinafter referred to as the "Order") and on the basis of such checks of thebooks and records of the Company as we considered appropriate and according to theinformation and explanations given to us we give in the "Annexure A" astatement on the matters specified in paragraphs 3 and 4 of the Order.

ii. 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 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. 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.

e. On the basis of the written representations received from the directors as on March31 2016 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2016 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".

g. With respect to the other matters to be included in the Auditors’ Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our knowledge and belief and according to the information andexplanations given to us:

i. The Company has disclosed the impact of pending litigations as at March 31 2016 onits financial position in its standalone financial statements in accordance with thegenerally accepted accounting practice – Refer Note 30 to the Standalone FinancialStatements.

ii. The Company did not have any 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.

For KONAR MUSTAPHI & ASSOCIATES
Chartered Accountants
FRN: 314125E
CA S. K. Mustaphi
Place: Kolkata Partner
Date: 31st May 2016 Membership. No: 051842

"Annexure A" to the Independent Auditor’s Report

Referred to in paragraph 6(i) with the heading ‘Report on Other Legal &Regulatory Requirements’ of our report of even date to the members of TantiaConstructions Limited on the Standalone Financial Statements for the year ended March 312016:

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

b) The Company has a regular programme of physical verification of its Fixed Assets bywhich the same is verified on rotational basis over a period of 3 years which in ouropinion is reasonable having regard to the size of the Company and nature of its assets.Accordingly the physical verification of the Fixed Assets has been carried out by theManagement during the year and no material discrepancies were noticed on suchverification.

c) Title deeds of immovable properties as explained to us are lying with the Bank aspart of collateral security provided to them against loans availed from the Bank.

ii. The Management has conducted physical verification of inventory in phased mannerduring the year and no material discrepancies between physical inventory and book recordswere noticed on physical verification.

iii. The Company has not granted any loans secured or unsecured to companies firmsLLPs or other parties covered in the register maintained under Section 189 of the Act.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Section 185 and 186 of the Act in respect ofthe loans and investment made and guarantees and security provided by it.

v. The Company has not accepted any deposits from the public within the meaning ofSections 73 to 76 of the Act and Rules framed there under to the extent notified.Accordingly the provisions of clause 3(v) of the Order are not applicable to the Company.

vi. We have broadly reviewed the books of accounts maintained by the Company pursuantto the Rules made by the Central Government for the maintenance of cost records undersection 148(1) of the Act and are of the opinion that prima facie the prescribedaccounts and records have been maintained. We have however not made a detailedexamination of the records with a view to determine whether they are accurate or complete.

vii. a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amount deducted/accrued in the books ofaccount in respect of undisputed statutory dues including Provident Fund Employees StateInsurance Income Tax Sales Tax Service Tax Customs Duty Value Added Tax Cess andother material statutory dues have generally not been regularly deposited during the yearby the Company with the appropriate authorities.

According to the information and explanations given to us undisputed amounts payablein respect of Provident Fund Income Tax Sales Tax Wealth Tax Service Tax CustomsDuty Value Added Tax and other material statutory dues as at March 31 2016 for a periodof more than 6 months from the date they became payable are as under:

Nature of Dues Amount (Rs. in Lakhs)
Provident Fund 111.11
Tax Deducted at Source 722.02
Sales Tax 32.36
Service Tax 167.39
STDS 67.71

b) According to the information and explanations given to us details of dues ofIncome Tax Sales Tax Service Tax Custom Duty Excise Duty Cess and other materialstatutory dues which has not been deposited on account of any dispute are given below:

Name of the Statute Name of the State Nature of dues Amount (Rs. in lakhs) Period to which the amount relates Forum where dispute is pending
Sales Tax West Bengal Appeal Demand 210.32 2005-06 Revisionary Board
Sales Tax West Bengal Appeal Demand 343.31 2006-07 Revisionary Board
Sales Tax West Bengal Appeal Demand 561.30 2007-08 Revisionary Board
Sales Tax West Bengal Appeal Demand 853.13 2008-09 Revisionary Board
Sales Tax West Bengal Appeal Demand 2235.63 2009-10 Revisionary Board
Sales Tax West Bengal Assessment Demand 706.11 2010-11 Revisionary Board
Sales Tax West Bengal Assessment Demand 947.93 2011-12 Revisionary Board
Sales Tax West Bengal Assessment Demand 1512.86 2012-13 Revisionary Board
Sales Tax West Bengal Penalty Notice (for wrong input tax credit) 306.84 2009-10 Revisionary Board
Sales Tax West Bengal Penalty Notice (for wrong input tax credit) 222.35 2010-11 Revisionary Board
Sales Tax West Bengal Penalty Notice (for wrong input tax credit) 306.84 2011-12 Revisionary Board
Sales Tax West Bengal Penalty Notice (for wrong input tax credit) 258.82 2012-13 Revisionary Board

viii. According to the records of the Company as examined by us and the information andexplanations given to us the Company has not defaulted in repayment of loans orborrowings to Banks. There were no loans or borrowings payable to the Government orfinancial institutions or debenture holders.

ix. According to the records of the Company as examined by us and as per theinformation and explanations given to us the Company has not made any public issue/followon public offer (including debt instruments) during the year.

The Company has not availed term loan during the year accordingly the provision ofClause 3(xiv) of the Order are not applicable to the Company.

x. During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us we have neither come across anyinstance of material fraud by the Company or on the Company by its officers or employeesnoticed or reported during the year nor have we been informed of any such case by theManagement. xi. In our opinion Managerial Remuneration for the year ended March 31 2016has been paid / provided in excess by Rs.30 lakhs over eligible limit for whichnecessary approval is being obtained by the Company from the shareholders.

An amount of Rs.42 lakhs has been paid in excess to the Chairman and ManagingDirector for the Financial Year 2013-14 for which the Company is taking steps to obtainnecessary approval from the concerned authorities failing which the same should berecovered from the Chairman and Managing Director. Till date the said approval has notbeen received.

xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly the provisions of clause 3 (xii) of the Orderare not applicable to the Company.

xiii. According to information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with Section 177 and 188 of the Act where applicable and the requisite detailsof such transactions have been disclosed in the Financial Statements as required by theapplicable accounting standards.

xiv. The Company has not made any preferential allotment / private placement of sharesor fully or partly convertible debentures during the year under review. Accordingly theprovisions of clause 3(xiv) of the Order are not applicable to the Company.

xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into any noncashtransactions with directors or persons connected with him. Accordingly the provisions ofclause 3 (xv) of the Order are not applicable to the Company.

xvi. The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of clause 3 (xvi) of the Order arenot applicable to the Company.

For KONAR MUSTAPHI & ASSOCIATES
Chartered Accountants
FRN: 314125E
CA S. K. Mustaphi
Place: Kolkata Partner
Date: 31st May 2016 Membership. No: 051842

"Annexure B" to the Independent Auditors’ Report referred to inparagraph 6(f) of the Independent Auditor’s Report to the members of TantiaConstructions Ltd on the Standalone Financial Statements for the year ended March 312016.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Act

We have audited the internal financial controls over financial reporting of TantiaConstructions Limited ("the Company") as of March 31 2016 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat 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). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to the company’s policies the safeguarding of itsassets the prevention and detection of frauds and errors the accuracy and completenessof the accounting records and the timely preparation of reliable financial informationas required under the Act.

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 prescribed under section143(10) of the Act to the extent applicable to an audit of internal financial controlsboth applicable to an audit of Internal Financial Controls and both issued by the ICAI.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 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 the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company’s assets that could havea 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.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For KONAR MUSTAPHI & ASSOCIATES
Chartered Accountants
FRN: 314125E
CA S. K. Mustaphi
Place: Kolkata Partner
Date: 31st May 2016 Membership. No: 051842