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Conart Engineers Ltd.

BSE: 522231 Sector: Infrastructure
NSE: N.A. ISIN Code: INE714D01012
BSE 00:00 | 14 Aug 20.20 -1.40
(-6.48%)
OPEN

20.00

HIGH

21.60

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NSE 05:30 | 01 Jan Conart Engineers Ltd
OPEN 20.00
PREVIOUS CLOSE 21.60
VOLUME 3302
52-Week high 29.90
52-Week low 15.30
P/E 5.44
Mkt Cap.(Rs cr) 6
Buy Price 19.75
Buy Qty 500.00
Sell Price 21.45
Sell Qty 42.00
OPEN 20.00
CLOSE 21.60
VOLUME 3302
52-Week high 29.90
52-Week low 15.30
P/E 5.44
Mkt Cap.(Rs cr) 6
Buy Price 19.75
Buy Qty 500.00
Sell Price 21.45
Sell Qty 42.00

Conart Engineers Ltd. (CONARTENGINEERS) - Auditors Report

Company auditors report

To The Members of

CONART ENGINEERS LIMITED

Report on the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of Conart Engineers Limited("the Company") which comprise the balance sheet as at 31st March 2019 and thestatement of Profit and Loss statement of changes in equity and statement of cash flowsfor the year then ended and notes to the financial statements including a summary ofsignificant accounting policies and other explanatory information.

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 2019 and profit/loss changes in equity and its cash flows for the yearended on that date.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (Sas) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that in our professional judgment we havedetermined that there are no key audit matters to communicate in our report.

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 changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theaccounting Standards specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate implementationand maintenance of accounting policies; making judgments and estimates that are reasonableand prudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the financialstatement that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so. Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with Saswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

Report on other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Companies Act 2013 we give in the Annexure – A a statement onthe matters specified in paragraphs 3 and 4 of the Order to the extent applicable.

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 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 31stMarch 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2019 from being appointed as a director in terms of Section164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls our 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 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 does not have any pending litigations which would impact its financialposition.

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

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

For Pereira and Subramanian Chartered Accountants

(P. B. Subramanian)

PARTNER Membership No. 039414 Firm Registration No. 112364W

Place : Mumbai Date : 22nd May 2019

Annexure - 1 Re: Conart Engineers Ltd

(Annexure to Auditor's Report)

(i ) IN RESPECT OF ITS FIXED ASSETS:

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

(b) The Company has physically verified certain assets during the period in accord witha programme of verification which in our opinion provides for physical verification ofthe fixed assets at reasonable intervals. According to the information and explanationsgiven to no material discrepancies were noticed on such verification. In our opinion fixedassets have been properly dealt with in the books of accounts.

(c) In our opinion and according to the information and explanations given to us in ouropinion and according to the information and explanations given to us the title deed ofthe immovable properties of the company are held in the name of the company.

(ii) In respect of its inventories in our opinion and according to the information andexplanations given to us the management at reasonable intervals has physically verifiedthe inventory and no material discrepancies were noticed on physical verifications.

(iii) In respect of loans secured or unsecured granted to companies firms or otherparties covered by clause (76) of section 2 of the companies Act 2013

(a) In our opinion the terms and conditions of grant of such loans are not prejudicialto the company's interest.

(b) The repayments of principal amount as well as interest are regular whicheverapplicable.

(c) There is no amount overdue which is more than Rs. 5 lakhs.

(iv) In respect of loans investments and guarantees in our opinion and according tothe information and explanations given to us provisions of Section 185 and 186 of theCompanies Act 2013 have been complied with.

(v) In our opinion and according to the information and explanation given to us thecompany has not accepted deposits from the public as per section 73 to 76 or any otherrelevant provisions of the Companies Act 2013.

(vi) According to information and explanation given to us the maintenance of costrecords has not been prescribed by the Central Government sub section (1) of section 148of the Companies Act 2013.

(vii) According to the information and explanation given to us in respect of statutoryand other dues:

(a) The Company has been regular in depositing undisputed statutory dues includingProvident Fund Employees' State Insurance Income-tax Sales-tax Service Tax CustomDuty Excise Duty Value added Tax Goods and Service Tax and other statutory dues withthe appropriate authorities during the period.

(b) There are disputed dues of Sales Tax Income Tax Customs Duty Service Tax ExciseDuty Value Added Tax Goods and Service Tax and any other statutory dues with theappropriate authorities during the period as under:

Year Type of Tax Authority against which disputed Amount in dispute (Rs.)
1 2012-13 to 2014-15 Service Tax Customs Service Tax and Excise Tax Appellate Tribunal 1078053

(viii) In our opinion and according to the information and explanations given to ussince the company has not taken any loan from financial institutions banks and debentureholders clause (viii) is not applicable.

(ix) In our opinion and according to the information and explanations given to us thecompany has not raised any money by way of public issue/follow-on offer and the companyhas not availed any term loan clause (ix) is not applicable.

(x) To the best of our knowledge and belief and according to the information andexplanations given to us no fraud on or by the Company was noticed or reported during theperiod.

(xi) In our opinion and according to the information and explanations given to us themanagerial remuneration has been paid/ provided in accordance with the requisite approvalsmandated by the provisions of section 197 read with schedule V to the Companies Act.

(xii) Since the company is not a Nidhi Company clause xii is not applicable.

(xiii) In our opinion and according to the information and explanations given to usall transactions with the related parties are in compliance with Section 188 and 177 ofCompanies Act 2013 and the relevant details have been disclosed in the financialstatement etc. as required by the accounting standards and Companies Act 2013.

(xiv) In our opinion and according to the information and explanations given to us thecompany has not made preferential allotment/private placement of shares or fully paid upshares during the year under review hence this clause is not applicable.

(xv) In our opinion and according to the information and explanations given to us thenon-cash transactions with directors or persons connected with them in our opinionprovisions of Section 192 have been complied with.

(xvi) Since the company is not a banking company clause xvi is not applicable.

For Pereira and Subramanian Chartered Accountants

(P. B. Subramanian)

PARTNER Membership No. 039414 Firm Registration No. 112364W

Place : Mumbai Date : 22nd May 2019

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")

We have audited the internal financial controls over financial reporting of ConartEngineers Ltd ("the Company") as of 31 March

20 19 in conjunction with our audit of the standalone financial statements of theCompany 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 safeguarding ofits 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 extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial 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 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 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 March 2019 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 Pereira and Subramanian Chartered Accountants (P. B. Subramanian)

PARTNER Membership No. 039414 Firm Registration No. 112364W

Place : Mumbai

Date : 22nd May 2019