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Conart Engineers Ltd.

BSE: 522231 Sector: Infrastructure
NSE: N.A. ISIN Code: INE714D01012
BSE 00:00 | 23 Apr 32.95 -0.15
(-0.45%)
OPEN

34.90

HIGH

34.90

LOW

32.50

NSE 05:30 | 01 Jan Conart Engineers Ltd
OPEN 34.90
PREVIOUS CLOSE 33.10
VOLUME 1399
52-Week high 45.25
52-Week low 21.00
P/E 5.91
Mkt Cap.(Rs cr) 10
Buy Price 32.05
Buy Qty 10.00
Sell Price 34.45
Sell Qty 190.00
OPEN 34.90
CLOSE 33.10
VOLUME 1399
52-Week high 45.25
52-Week low 21.00
P/E 5.91
Mkt Cap.(Rs cr) 10
Buy Price 32.05
Buy Qty 10.00
Sell Price 34.45
Sell Qty 190.00

Conart Engineers Ltd. (CONARTENGINEERS) - Auditors Report

Company auditors report

To The Members of

CONART ENGINEERS LIMITED

Report on the Financial Statements

We have audited the accompanying Ind AS financial statements of CONART ENGINEERSLIMITED ("the Company") which comprise the Balance Sheet as at March 312018 the Statement of Profit and Loss (Including other comprehensive Income) thestatement of Change in Equity and Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation andpresentation of these Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive Income change inequity and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) specifiedunder Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.This responsibility also includes the maintenance of adequate accounting records inaccordance with the provision of the Act for safeguarding the assets of the Company andfor preventing and detecting the 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 control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Ind AS 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 Ind AS financial statements basedon 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.

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 Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by Company's Directors as well as evaluating the overallpresentation of the Ind AS 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.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe 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 2018 and its profit total comprehensive Income the change in equity andits cash flows for the year ended on that date.

Emphasis of Matters

In our opinion and the best of our information and according to the explanation givento us there is no matter which may have an adverse effect on the functioning of thecompany.

Report on other Legal and Regulatory Requirements

As required by the Companies (Audit Report) Order 2016 ("the order") issuedby the Central Government of India in terms of sub section (11) of section 143 of the Actwe give in the Annecure –A a statement on the matters specified in Para 3 and 4 ofthe order.

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 including other ComprehensiveIncome the statement of change in Equity and Cash Flow Statement dealt with by thisReport are in agreement with the books of account.

d) In our opinion the aforesaid Ind AS financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

e) On the basis of written representations received from the Directors as on 31 March2018 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2018 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 our 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) Rules 2014 in our opinionand to our best of our information and according to the explanations given to us : i. TheCompany did not have any pending litigations which would impact its financial position.

ii. The Company did not have any long term contracts including derivatives contractsfor which there were any material foreseeable losses.

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

For S.M. Kapoor & CO.
Chartered Accountants
(S.M. KAPOOR)
PARTNER
Place : Mumbai Membership No. 005133
Date : 14-05-2018 Firm Registration No. 104809W

Annexure - A to Auditors' Report

(i ) In respect of its property Plant and equipments:

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property Plant and equipments.

(b) The Company has physically verified property Plant and equipments during theperiod in accordance with a programme of verification which in our opinion provides forphysical verification of the fixed assets at reasonable intervals. According to theinformation and explanations given to no material discrepancies were noticed on suchverification. In our opinion property Plant and equipments have been properly dealt within the books of accounts.

(c) In our opinion and according to the information and explanations given to us thetitle deeds of the immovable properties of the company are held in the name of thecompany.

(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 inventories and no material discrepancies were noticed on physical verifications.

(iii) According to the information and explanations given to us the Company has notgranted loan to any party covered in register u/s. 2(76) hence clause iii(a) (b) and (c)are not applicable.

(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 explanations 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 Wealth Tax ServiceTax Custom Duty Excise Duty Value added Tax cess and any other statutory dues with theappropriate authorities during the period.

(b) There are no disputed dues of Sales Tax Income Tax Customs Duty Wealth TaxService Tax Excise Duty Value Added Tax Cess and any other statutory dues with theappropriate authorities during the period.

(viii) In our opinion and according to the information and explanations given to usthe company has not defaulted in repayment of dues to financial institutions banks ordebenture holders.

(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. Further withreference to money raised as term loans in our opinion were applied for the purpose forwhich the said loans are raised.

(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 Ind AS 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 made preferential allotment/ private placement of shares or fully or partlyconvertible debentures during the year under reviewand in our opinion the the requirementof section 42 of the Companies Act 2013 have been complied with and the amount raisedhave been used for the purpose for which for which it raised.

(xv) According to the information and explanations given to us the non- cashtransactions with directors or persons connected with them in our opinion provisions ofSection 192 have been complied with.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India act 1934.

For S.M. Kapoor & CO.
Chartered Accountants
(S.M. KAPOOR)
PARTNER
Place : Mumbai Membership No. 005133
Date : 14-05-2018 Firm Registration No. 104809W

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 Limited ("the Company") as of 31 March 2018 in conjunction withour audit of the standalone Ind AS 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 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 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 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 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 2018 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 S.M. Kapoor & CO.
Chartered Accountants
(S.M. KAPOOR)
PARTNER
Place : Mumbai Membership No. 005133
Date : 14-05-2018 Firm Registration No. 104809W