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Constronics Infra Ltd.

BSE: 523844 Sector: Health care
NSE: N.A. ISIN Code: INE537B01011
BSE 00:00 | 09 Dec 6.50 0.27
(4.33%)
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NSE 05:30 | 01 Jan Constronics Infra Ltd
OPEN 6.50
PREVIOUS CLOSE 6.23
VOLUME 1
52-Week high 9.63
52-Week low 4.50
P/E 25.00
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 6.50
CLOSE 6.23
VOLUME 1
52-Week high 9.63
52-Week low 4.50
P/E 25.00
Mkt Cap.(Rs cr) 5
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Constronics Infra Ltd. (CONSTRONICS) - Auditors Report

Company auditors report

TO THE MEMBERS OF CONSTRONICS INFRA LIMITED (FORMERLY INVICTA MEDITEK LIMITED)

Report on the Financial Statements

Opinion

We have audited the financial statements of CONSTRONICS INFRA LIMITED (Formerly InvictaMeditek Limited) (“the Company”) which comprise the Balance Sheet as at 31stMarch 2021 the Statement of Profit and Loss (including other Comprehensive income) theCash Flow Statement and the Statement of Changes in Equity for the year then ended andnotes to the Financial Statements including a summary of the significant accountingpolicies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis for QualifiedOpinion section of our report the aforesaid financial statements give the informationrequired by the Companies Act 2013 in the manner so required and give a true and fair viewin conformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31st 2021 and its loss (changes in equity) and itscash flows for the year ended on that date.

Basis for Qualified Opinion

a. Amount shown under Non-Current Financial Assets in the Balance Sheet includes anamount of Rs.6904171/- (Amount Sanctioned during the year Rs. Nil) being Outstanding ofamount of Loan given to one of the Former directors without obtaining prior approval ofCentral Government as required under section 185 of the Companies Act 2013. No provisionfor the said amount due has been made in the accounts. In our opinion the said amount ofRs.6904171/- needs to be fully provided for since the amount is outstanding for morethan five years and the company could recover only a sum of Rs 150000/- during thecurrent Financial Year towards the said dues. Had the company made provision for the saidsum of Rs.6904171/- the results of the operations of the company for the currentfinancial year would have resulted in a loss of Rs.7682474/- and the amount under loansunder non-current assets would be lower by Rs.6904171/-.

b. The Company has not complied with the mandatory requirement under section 138 of theCompanies Act 2013 regarding the appointment of Internal Auditors.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined the matters described below to be the key audit matters to be communicatedin our report

Sl. No. Key Audit Matters Auditor's Response
1 Interest Free Loans From Directors: The compliance with provisions of the Companies Act 2013 for the availment of interest free loans were examined by us. Our Examination revealed that the company has complied with the relevant statutory requirements as laid down in the Companies Act 2013 for the availment of interest free loans from directors.
The company has availed an interest free loan of Rs 1500000/- from one of its directors during the current Financial year. This amount along with interest free loans taken in earlier years and considered under Short Term borrowings amounts to Rs 3006885/ as at 31.03.2021.. The company has also obtained confirmation of balances from the said directors which has been examined by us as a part of audit procedure.
The above loans were taken to meet the business needs of the company.

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 (changes in equity) and cash flows of the Company in accordancewith the accounting principles generally accepted in India including theIndian accountingStandards(Ind AS) 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 accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation 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 statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the financial statements Board of Directors is responsible for assessingthe Company's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless Board ofDirectors either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

The Board of Directors is also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibility

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.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theCompanies Act 2013 we are also responsible for expressing our opinion on whether thecompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Emphasis of Matter

Attention of the shareholders is drawn to Note No.29 of Notes to accounts whichelaborate the ability of the company to continue as a going concern. Our opinion is notqualified in respect of the said matter.

Attention of the shareholders is drawn to note no 43 regarding the managementperception on the business prospects of the company due to pandemic COVID 19.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 (the Order) issued bythe Central Government of India in terms of sub-section (11) of section 143 of the Act wegive in Annexure-I a statement on the matters specified in paragraphs 3 and 4 of the saidOrder to the extent applicable.

2. As required by Section143(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 ouropinion proper books of account as required by law have been kept by the Company so faras it appears from our examination of those books. (c) The Balance Sheet the Statement ofProfit and Loss Cash Flow Statement and the Statement of Changes in Equity dealt with bythis Report are in agreement with the books of accounts. (d) In our opinion the aforesaidfinancial statements comply with the Indian Accounting Standards (Ind AS) prescribed underSection 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015as amended. (e) On the basis of written representations received from the directors as on31st March 2021 and taken on record by the Board of Directors none of theDirectors of the company is disqualified as on 31st March 2021 from beingappointed as a director in terms of Section 164(2) of the Act

(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 II”; and (g) With respect to the other matters tobe included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit andAuditors) Rules 2014 as amended in our opinion and to the best of our information andaccording to the explanations given to us:

i. The Company does not have any pending litigations which would impact its financialposition in its Ind As financial statements.

ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses. iii. The Company has not transferredRs.56618/- received towards preferential allotment to the Investor Education AndProtection Fund delay in transferring the said amount is persisting from earlieraccounting years.

For CHANDRAN & RAMAN

Chartered Accountants

Firm Regn. No. 000571S

Sd/-

S. PATTABIRAMAN

Partner

M No. 014309

Place: Chennai

Date: 28.06.2021

Annexure-I to Independent Auditors' Report

Statement of matters specified in Para 3 & 4 of the order referred to insub-section (11) of section 143

The Annexure referred to in our report to the members of CONSTRONICS INFRA LIMITED(the Company') for the year Ended on 31.03.2021:

01) Property Plant and Equipment

The company did not own any fixed assets during the Financial year and accordinglyreporting as to the maintenance of records showing full particulars including quantitydetails and situation of fixed assets does not arise and also reporting as to therequirements for programme for physical verification does not arise.

02) Inventory

The inventory has been physically verified at reasonable intervals by the management.No material discrepancies were noticed during such verification.

03) 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 Act. HoweverAmount shown under Non-current Financial Assets includes an amount of Rs.6904171/-(Amount sanctioned during the year Rs.nil) being outstanding of loans given to one of itsformer directors without obtaining the prior approval asperthe requirements of section185 of Companies Act 2013.

04) A sum of Rs.6904171/- is due from a former director and included under Loans andadvances. The said sum has been carried forward from the earlier accounting years. Theabove amount of advance to a former director is in violation of the provisions of sec 185and 186 of the Companies Act 2013.

05) The Company has not accepted deposits from public. Hence we have no comments tooffer in respect of the same.

06) According to the information and explanations given to us the Central Governmenthas not prescribed the maintenance of cost records under section 148 (1) of the Act forthe company.

07) In respect of Statutory Dues: a) There was no undisputed amounts payable in respectof Income tax Sales tax Service tax Customs duty Value added tax Cess GST exceptingGST Liability of Rs.7538/- outstanding as at 31st March 2021 for a period of more than 6months from the day they became payable. b) According to information and explanationsgiven to us there are no dues of income tax sales tax service tax customs duty exciseduty and cess which have not been deposited on account of any dispute.

08) The company has notavailed any loans or borrowing from financial institution bankor Government. Hence reporting as to the default of repayment to any of the aboveinstitutions/ Government is not applicable

09) The Company has not raised monies by way of initial public offer or further publicoffer (including debt instruments) during the period covered relevant financial year. Alsothe company has not taken any term loans during the relevant financial year.

10) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.

11) Managerial remuneration has been paid or provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct.

12) The Company is not a Nidhi Company and hence the provisions para 3(xii) of theorder referred to in Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India in terms of subsection (11) of Section 143 of the Act does not applyto the Company.

13) In our opinion all transactions with the related parties are in compliance withthe provisions of section 177 and section 188 of the companies Act 2013 where applicableand details of such transactions have been disclosed in the financial statements asrequired by the applicable Indian Accounting Standards.

14) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.

15) 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 non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

16) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Accordingly the provisions of clause (xvi) of the order are notapplicable to the company.

For CHANDRAN & RAMAN

Chartered Accountants

Firm Regn. No. 000571S

Sd/-

S. PATTABIRAMAN

Partner

M No. 014309

Place: Chennai

Date: 28.06.2021

ANNEXURE - II TO THE INDEPENDENT AUDITOR'S 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 CONSTRONICSINFRA LIMITED (“the Company”) as of 31 March 2021 in conjunction with our auditof the financial statements 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 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 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 have amaterial 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 2021 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 CHANDRAN & RAMAN

Chartered Accountants

Firm Regn. No. 00571S

Sd/-

S. PATTABIRAMAN

Partner

M No. 014309

Place: Chennai

Date: 28.06.2021

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