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C & C Constructions Ltd.

BSE: 532813 Sector: Infrastructure
NSE: CANDC ISIN Code: INE874H01015
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VOLUME 15581
52-Week high 109.00
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Mkt Cap.(Rs cr) 74
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Sell Price 0.00
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OPEN 29.90
CLOSE 30.45
VOLUME 15581
52-Week high 109.00
52-Week low 28.95
P/E
Mkt Cap.(Rs cr) 74
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

C & C Constructions Ltd. (CANDC) - Auditors Report

Company auditors report

To the Members of C&C Constructions Limited

1. Report on the Financial Statements

We have audited the accompanying financial statements of C & C ConstructionsLimited which comprises the Balance Sheet as at 31-Mar-2017 and the Statement of Profitand Loss & cash flow for the year then ended and a summary of significant accountingpolicies and other explanatory information.

2. 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. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

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 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 andthe 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 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. 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. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the standalonefinancial statements.

4. Opinion

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 the accountingprinciples generally accepted in India of the state of affairs of the Company as at31.03.2017 and its Profit& its cash flow for the year ended on that date.

5. Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 (the Order) issued by theCentral Government in terms of Section 143 (11) of the Act we give in the Annexure‘A' a statement on matters specified in paragraph 3 & 4 of the said order.

6. 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 purposes 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 and the Statement of Profit and Loss & cash flow dealt with bythis 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) In our opinion there are no observations or comments on the financial transactionswhich may have an adverse effect on the functioning of the Company.

f) On the basis of the written representations received from the directors as on31-Mar-2017 and taken on record by the Board of Directors we report that none of thedirectors is disqualified as on 31-Mar-2017 from being appointed as a director in terms ofsection 164(2) of the Act.

g) Report on the Internal Financial Controls under Clause (i) of Sub-section 3 ofSection 143 of the Companies Act 2013 ("the Act")- is enclosed asAnnexure‘B'to this report.

h) 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) The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note. 32 to the financial statements:

ii) The Company has a process whereby periodically all long term contracts [includingderivatives contracts] are assessed for material foreseeable losses. At the year end thecompany has reviewed and ensured that adequate provision as required under any law/accounting standards for material foreseeable losses on such long term contracts[including derivative contracts] has been made in the books of accounts.

iii) There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

iv) The Company has provided disclosure in its Financial Statement as to holding aswell as dealings in Specified Bank Notes during the period 8th Nov. 2016 to 30th Dec.2016 and these are in accordance with the books of accounts maintained by the company.Refer Note No. 40 to the Financial Statements.

For A S G & Associates
Chartered Accountants
FRN: 000389N
Amar Jeet Singh
Place: Gurugram (Partner)
Dated: 29.05.2017 M. No.: 089285

ANNEXURE -A' TO THE AUDITORS REPORT

Report under the Companies (Auditor's Report) Order 2016 of C& C ConstructionsLimited for the year ended 31.03.2017 referred to in of our 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 has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

b) As explained to us all the assets have not been physically verified by themanagement during the year but there is a regular programme of verification which in ouropinion is reasonable having regard to the size of the company and the nature of itsassets. No material discrepancies were noticed on such verification.

c) The title deeds of immoveable properties are held in the name of the company.

2. As explained to us the inventory has been physically verified at reasonableintervals during the year by the management. In our opinion the frequency of verificationis reasonable. The discrepancies noticed on verification between the physical stocks andthe book records have been properly dealt with in the books of accounts.

3. The company has granted loan to the companies firms Limited Liability Partnershipsor other parties covered in the register maintained under section 189 of the Act.

a) The terms and conditions of the grant of such loans are not prejudicial to thecompany's interest.

b) No Schedule of repayment of principal has been stipulated and also there is nostipulation with regards to interest.

c) No Schedule of repayment of principal and payment of interest has been stipulatedand therefore there is no overdue amount.

4. In respect of loans investments guarantees and security the provisions of section185 and 186 of the Companies Act 2013 have been duly complied with by the company duringthe year under consideration.For investments made advances given or guarantees providedexceeding the limits laid down in Section 186 of the Actdirectors have prior permissionby way of special resolution passed at a General Meeting.

5. In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits in contravention of Directives issued by ReserveBank of India and the provisions of section 73 to 76 or any other relevant provisions ofthe Act and the rules framed there under where applicable . No order has been passed bythe Company Law Board or National Company Law Tribunal or Reserve Bank of India or anycourt or any other tribunal.

6. We have broadly reviewed the books of account maintained by the company pursuant tothe rules made by the Central Government of India regarding the maintenance of CostRecords under section 148(1) of the Companies Act 2013 and are of the opinion that primafacie the prescribed accounts and records have been maintained. We have however notmade a detailed examination of the records with the view to determine whether they areaccurate or complete.

7. a) According to the records of the company the company is generally regular indepositing with appropriate authorities undisputed statutory dues including providentfund investor education protection fund employees' state insurance income tax salestax wealth tax service tax custom duty excise duty Cess and other material statutorydues applicable to it though there has been delay in few cases.

According to the information and explanations given to us undisputed amounts payablein respect of income tax wealth tax service tax sales tax custom duty excise duty andCess that were in arrears as at 31-Mar-2017 for a period of more than six months from thedate they became payable are given below.

Name of Authority Amount (Rs. in Lacs)
SERVICE TAX 276.13
TDS/TCS PAYABLE 1361.50
PROVIDENT FUND 96.97
VAT/WCT 659.07

7. b) According to the information and explanations given to us the dues of sales taxincome tax custom duty wealth tax excise duty and Cess that have not been depositedwith appropriate authorities on account of any dispute and the forum where the disputesare pending are given below

Name of The Statute Nature of The Disputed Dues Amount (Rs. in lacs) Period To Which The Amount Relates Forum Where Dispute is Pending
U.P Trade Tax Act Demand against material purchased against ‘C form 35.26 (Amount deposited 12.34 lacs) F. Y. 2002-03 Joint Commissioner (Appeals) Noida UP
Income Tax Department Demand against Short Deduction and interest subject to rectification. 48.22 (Amount deposited NIL) F. Y. 2000-01 Income Tax Officer (TDS)New Delhi
Income Tax Department Demand against Short Deduction and interest subject to rectification. 7.12 (Amount deposited NIL) F Y. 2007-08 Income Tax Officer (TDS)New Delhi
Income Tax Department Demand against Short Deduction and interest subject to rectification. 82.86 (Amount deposited NIL) F Y. 2008-09 Income Tax Officer (TDS)New Delhi
Income Tax Department Demand against Short Deduction and interest subject to rectification. 11.28 (Amount deposited NIL) F Y. 2009-10 Income Tax Officer (TDS)New Delhi
Income Tax Department Demand against Short Deduction and interest subject to rectification. 31.23 (Amount deposited NIL) F Y. 2010-11 Deputy Commissioner of Income Tax Gurugram
Income Tax Department Demand against Short Deduction and interest subject to rectification. 85.14 (Amount deposited NIL) F. Y. 2011-12 Deputy Commissioner of Income Tax Gurugram

 

Name of The Statute Nature of The Disputed Dues Amount (Rs. in Lacs) Period To Which The Amount Relates Forum Where Dispute is Pending
Income Tax Department Demand against Short Deduction and interest subject to rectification. 126.72 (Amount deposited 30 lacs) F. Y. 2012-13 Deputy Commissioner of Income Tax Gurugram
Income Tax Department Demand against Short Deduction and interest subject to rectification. 79.72 (Amount deposited NIL) F. Y. 2013-14 Deputy Commissioner of Income Tax Gurugram
Income Tax Department Demand against Short Deduction and interest subject to rectification. 55.59 (Amount deposited NIL) F. Y. 2014-15 Deputy Commissioner of Income Tax Gurugram
Income Tax Department Demand against Short Deduction and interest subject to rectification. 36.85 (Amount deposited NIL) F. Y. 2015-16 Deputy Commissioner of Income Tax Gurugram
Income Tax Department Demand against Short Deduction and interest subject to rectification 0.59 (Amount deposited NIL) F. Y. 2016-17 Deputy Commissioner of Income Tax Gurugram
Service Tax Department Penalty under section 78 886.74 (Amount deposited NIL) F. Y. 2011-14 Commissioner of Service Tax Gurugram
Sales Tax Department Addition Demand for Interstate purchase against composition scheme. 1118.18 (Amount deposited NIL) F. Y. 2013-16 ACATO (Ward No.89) Dept. Of Trade and Taxes Govt of NCT Of Delhi
Provident Fund Appeal Under Section 7-I of the Employee‘s Provident fund & Miscellaneous Provision Act 1952 towards 14-B Damage Charges 53.01 (Amount deposited NIL) F. Y. 2013-16 Presiding Officer Employees Provident Fund Appellate Tribunal New Delhi

Disputed Demands of Joint Ventures (Applicable share):

Name of The Statute Nature of The Disputed Dues Amount (Rs. in Lacs) Period To Which The Amount Relates Forum Where Dispute is Pending
Income Tax Penalty under section 271(1)(c) 299.86 (Amount deposited 45 lacs) F.Y-2006-07 CIT Appeal New Delhi
Income Tax Penalty under section 271(1)(c) 145.92 (Amount deposited 22 lacs) F.Y. 2008-09 CIT Appeal New Delhi

 

Name of The Statute Nature of The Disputed Dues Amount (Rs. in lacs) Period To Which The Amount Relates Forum Where Dispute is Pending
Income Tax Department Demand against Short Deduction and interest subject to rectification. 3.28 (Amount deposited NIL) F. Y. 2007-08 Income Tax Officer (TDS)New Delhi
Income Tax Department Demand against Short Deduction and interest subject to rectification. 3.29 (Amount deposited NIL) F. Y. 2008-09 Income Tax Officer (TDS)New Delhi
Income Tax Department Demand against Short Deduction and interest subject to rectification. 7.71 (Amount deposited NIL) F. Y. 2009-10 Income Tax Officer (TDS)New Delhi
Income Tax Department Demand against Short Deduction and interest subject to rectification. 0.40 (Amount deposited NIL) F. Y. 2010-11 Income Tax Officer (TDS)New Delhi
Income Tax Department Demand against Short Deduction and interest subject to rectification. 4.55 (Amount deposited NIL) F. Y. 2011-12 Income Tax Officer (TDS)New Delhi
Income Tax Department Demand against Short Deduction and interest subject to rectification. 32.58 (Amount deposited NIL) F. Y. 2012-13 Income Tax Officer (TDS)New Delhi
Income Tax Department Demand against Short Deduction and interest subject to rectification. 21.24 (Amount deposited NIL) F. Y. 2013-14 Income Tax Officer (TDS)New Delhi
Income Tax Department Demand against Short Deduction and interest subject to rectification. 3.97 (Amount deposited NIL) F. Y. 2014-15 Income Tax Officer (TDS)New Delhi
Income Tax Department Demand against Short Deduction and interest subject to rectification. 3.04 (Amount deposited NIL) F. Y. 2015-16 Income Tax Officer (TDS)New Delhi
Income Tax Department Demand against Short Deduction and interest subject to rectification 1.11 (Amount deposited NIL) F. Y. 2016-17 Income Tax Officer (TDS)New Delhi
Income Tax Department Disallowance of Additional Depreciation 289.15 (Amount deposited 289.15) F. Y. 2003-04 High Court New Delhi
Income Tax Department Disallowance of Additional Depreciation 321.45 (Amount deposited 321.45) F. Y. 2005-06 ITAT New Delhi

 

Name of The Statute Nature of The Disputed Dues Amount (Rs. in lacs) Period To Which The Amount Relates Forum Where Dispute is Pending
Income Tax Department Disallowance of Additional Depreciation 439.48 (Amount deposited 439.48) F Y. 2006-07 ITAT New Delhi
Income Tax Department Disallowance of Additional Depreciation 157.03 (Amount deposited 157.03) F. Y. 2007-08 ITAT New Delhi
Income Tax Department Disallowance of Additional Depreciation 309.81 (Amount deposited 309.81) F Y 2008-09 High Court New Delhi
Income Tax Department Disallowance of TDS Credit on Account of Mobilisation 15.33 (Amount deposited 15.33) F Y 2009-10 ACIT Circle 62(1) New Delhi
Income Tax Department Disallowance of TDS Credit on Account of Mobilisation 19.70 (Amount deposited 19.70) F Y 2010-11 ACIT Circle 62(1) New Delhi

 

Name of The Statute Nature of The Disputed Dues Amount (Rs. in Lacs) Period To Which The Amount Relates Forum Where Dispute is Pending
Income Tax Department Disallowance of TDS Credit on Account of Mobilisation 48.68 (Amount deposited NIL) F. Y 2011-12 ACIT Circle 62(1) New Delhi
Income Tax Department Disallowance u/s 40(a)(ii) 40 (a)(ia) disallowance of depreciation of tipper and disallowance of TDS credit on account of Mobilisation 372.65 (Amount deposited 56 Lacs) F. Y. 2012-13 CIT Circle 62(1) New Delhi
Income Tax Department Penalty u/s 271(1)(c) 2.18 (Amount deposited 2 Lacs) F Y 2011-12 CIT Appeal New Delhi

8. Based on our audit procedures and according to the information and explanationsgiven to us we are of the opinion the company has defaulted in repayment of dues to afinancial institution bank Government or dues to debenture holders. The detail of periodand the amount of default as ascertained by the management is as follows: -

Details of Continuing defaults in repayment of secured Term loan from bank and otherunder CDR:

FROM BANK FITL

Name of Bank Principal Amount Interest Accrued and Due Total Amount Overdue Period to Which it Relates
State Bank of India 167309250 121798491 289107741 Apr‘14 to Mar ‘17
State Bank of Hyderabad 10421598 6424711 16846309 Jun‘16 to Mar ‘17
Indusland Bank - 498364 498364 Feb‘17 to Mar ‘17
ICICI Bank - 276355 276355 Feb‘17 to Mar ‘17
Axis Bank - 439469 439469 Mar ‘17
Oriental Bank of Commerce 4735750 21346103 46081853 Apr‘14 to Mar ‘17
Central Bank of India 46200000 44670549 90870549 Jul‘14 to Mar ‘17
State Bank of Patiala 30624000 13395711 44019711 Jun‘16 to Mar ‘17
TOTAL 279290598 208849753 488140351

WCTL

Name of Bank Principal Amount Interest Accrued and Due Total Amount Overdue Period to Which it Relates
State Bank of India 376098750 512990616 889089366 Apr‘14 to Mar ‘17
State Bank of Patiala 73200000 76127913 149327913 Jun‘16 to Mar ‘17
State Bank of Hyderabad 25579203 41790301 67369504 Jun‘16 to Mar ‘17
IndusInd Bank - 3045880 3045880 Feb‘17 to Mar ‘17
ICICI Bank - 1977109 1977109 Feb‘17 to Mar ‘17
Axis Bank - 2553685 2553685 Mar ‘17
IDBI 3156750 4078496 7235246 Jul‘16 to Mar ‘17
Oriental Bank of Commerce 60019250 97272086 157291336 Apr‘14 to Mar ‘17
Central Bank of India 91279250 138833558 230112808 Jul‘14 to Mar ‘17
TOTAL 629333203 878669644 1508002847

CTL

Name of Bank Principal Amount Interest Accrued and Due Total Amount Overdue Period to Which it Relates
State Bank of Hyderabad 2739840 4520406 7260246 Jun‘16 to Mar ‘17

MTL

Name of Bank Principal Amount Interest Accrued and Due Total Amount Overdue Period to Which it Relates
State Bank of Patiala 6040000 6264752 12304752 Jul‘16 to Mar ‘17

FROM OTHERS FITL

Name of Bank Principal Amount Interest Accrued and Due Total Amount Overdue Period to Which it Relates
Bajaj Infrastructure Ltd 31951234 16206503 48157737 Jan ‘14 to Mar ‘16
Srei Equipment 2862585 422938 3285523 Oct‘15 to Mar ‘16
L&T Infra Finance Ltd. 82121036 34282427 116403463 Oct‘14 to Mar ‘16
TOTAL 116934855 50911868 167846723

CTL

Name of Bank Principal Amount Interest Accrued and Due Total Amount Overdue Period to Which it Relates
Bajaj Infrastructure Ltd 126250000 122281290 248531290 Oct ‘14 to Mar ‘16
L&T Infra Finance Ltd. 279294282 238741851 518036133 Jan ‘14 to Mar ‘16
Srei Equipment 15223471 15223471 Nov ‘15 to Mar‘ 16
TOTAL 405544282 376246612 781790894

Details of continuing defaults in repayment of Secured Term Loans for Machinery &Vehicles from Others under Non-CDR Scheme:

Name of Bank Principal Amount Interest Accrued and Due Total Amount Overdue Period to Which it Relates
L&T Finance Ltd 168001 5074 173075 Dec‘14 to Apr ‘15
Magma Fincorp Ltd 85956 3044 89000 Dec ‘16 to Mar ‘17
Hinduja Leyland Finance Ltd 914810 21454 936264 Nov‘15 to Jan ‘16
L&T Finance Ltd 2698705 33529 2732234 Mar ‘17
SREI equipment Finance Pvt Ltd 1347300 40178 1387478 Feb‘17 & Mar ‘17
TOTAL 5214772 103279 5318051

Detail of continuing defaults in repayment of interest on Demand Loans from Banks

Name of Bank Principal Amount Interest (Overdue) Total Amount Overdue Overdue Period
DBS Bank Ltd N.A. 180939408 180939408 Jun '12 to Mar ‘17
Barclays Bank N.A. 59042982 59042982 Jun '12 to Mar ‘17
Standard Chartered Bank N.A. 1812979 1812979 Mar ‘17
TOTAL 241795369 241795369

INTREST ON CC/OD

Name of Financer Principal Amount Interest (Overdue) Total Amount Overdue Overdue Period
State Bank of India N.A. 355969262 355969262 Nov'14 to Mar '17
Central Bank of India N.A. 103251123 103251123 Oct'14 to Mar '17
State Bank of Patiala N.A. 83386968 83386968 Jul‘16 to Mar ‘17
State Bank of Hyderabad N.A. 38157325 38157325 Jul‘16 to Mar ‘17
TOTAL 580764678 580764678
GRAND TOTAL 1445097550 2348126360 3793223910

9. The company has not raised moneys by way of initial public offer or further publicoffer (including debt instrument). However the moneys were raised by way of term loanswhich were applied for the purposes for which those were raised.

10. Based upon the audit procedures performed and according to the information andexplanations given to us no fraud by the company or any fraud on the company by itsofficers or employees has been noticed or reported during the course of our audit thatcauses the financial statements to be materially misstated.

11. We were explained that in view of the losses being suffered by the company nomanagerial remuneration has been paid or provided for.

12. The company is not a Nidhi Company hence this clause is not applicable.

13. Based upon the audit procedures performed and according to the information andexplanations given to us all transactions with related parties are in compliance withsections 177 and 188 of Companies Act 2013 wherever applicable and the details havebeen disclosed in the Financial statements etc. as required by the applicable accountingstandards.

14. The company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review.

15. The company has not entered into any non-cash transactions with directors orpersons connected with him.

16. The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For A S G & Associates
Chartered Accountants
FRN: 000389N
Amar Jeet Singh
Place : Gurugram (Partner)
Dated : 29.05.2017 M. No.: 089285

ANNEXURE B' TO THE AUDITOR'S REPORT

TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL STATEMENTSOF C & C CONSTRUCTIONS LIMITED THE YEAR ENDED 31.03.2017

Report on the Internal Financial Controls under Clause (i) of Subsection 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of (TheCompany') as of 31-Mar-2017 in conjunction with our audit of the standalone financialstatements 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. These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information 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 Institute of Chartered Accountants ofIndia. Those Standards and the Guidance 168 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 auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor's judgement including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence I/we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.

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 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

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 31-Mar-2017.

For A S G & Associates
Chartered Accountants
FRN : 000389N
Place: Gurugram Amar Jeet Singh
Date : 29.05.2017 (Partner)
M. No. : 089285