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IL&FS Transportation Networks Ltd.

BSE: 533177 Sector: Engineering
NSE: IL&FSTRANS ISIN Code: INE975G01012
BSE 00:00 | 19 Aug 2.12 -0.11
(-4.93%)
OPEN

2.12

HIGH

2.12

LOW

2.12

NSE 00:00 | 19 Aug 2.10 0.05
(2.44%)
OPEN

1.95

HIGH

2.10

LOW

1.95

OPEN 2.12
PREVIOUS CLOSE 2.23
VOLUME 2717
52-Week high 37.20
52-Week low 2.07
P/E
Mkt Cap.(Rs cr) 70
Buy Price 2.12
Buy Qty 785.00
Sell Price 2.12
Sell Qty 25698.00
OPEN 2.12
CLOSE 2.23
VOLUME 2717
52-Week high 37.20
52-Week low 2.07
P/E
Mkt Cap.(Rs cr) 70
Buy Price 2.12
Buy Qty 785.00
Sell Price 2.12
Sell Qty 25698.00

IL&FS Transportation Networks Ltd. (IL&FSTRANS) - Auditors Report

Company auditors report

To the Members of

IL&FS Transportation Networks Limited

Report on the Standalone Ind AS financial Statements

We have audited the accompanying standalone Ind AS financial statementsof IL&FS Transportation Networks Limited ("the Company") which comprise theBalance Sheet as at March 31 2018 the Statement of Profit and Loss including theStatement of Other Comprehensive Income the Cash Flow Statement and the Statement ofChanges in Equity for the year then ended and a summary of significant accountingpolicies and other explanatory information.

Management's Responsibility for the Standalone Ind AS financialstatements

The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these standalone Ind AS financial statements that give a true and fairview of the financial position financial performance including other comprehensiveincome cash flows and changes in equity of the Company in accordance with accountingprinciples generally accepted in India including the Accounting Standards specified undersection 133 of the Act read with the Companies (Indian Accounting Standards) Rules 2015as amended. This responsibility includes maintenance of adequate accounting records inaccordance 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 the design implementation and maintenance of adequateinternal financial 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 standalone Ind ASfinancial statements based on our audit. We have taken into account the provisions of theAct the accounting and auditing standards and matters which are required to be includedin the audit report under the provisions of the Act and the Rules made thereunder. Weconducted our audit in accordance with the Standards on Auditing issued by the Instituteof Chartered Accountants of India as specified under Section 143(10) of the Act. ThoseStandards require that we comply with ethical requirements and plan and perform the auditto obtain reasonable assurance about whether the standalone Ind AS financial statementsare free from material misstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and disclosures in the standalone Ind AS financial statements. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the standalone Ind AS financial statements whether due to fraudor error. In making those risk assessments the auditor considers internal financialcontrol relevant to the Company's preparation of the standalone Ind AS financialstatements that give a true and fair view in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made by theCompany's Directors as well as evaluating the overall presentation of the standaloneInd AS financial statements. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the standalone IndAS financial statements.

Opinion In our opinion and to the best of our information andaccording to the explanations given to us the standalone Ind AS financial statements givethe information required by the Act in the manner so required and give a true and fairview in conformity with the accounting principles generally accepted in India of thestate of affairs of the Company as at March 31 2018 its profit including othercomprehensive income its cash flows and the changes in equity for the year ended on thatdate.

Emphasis of Matter

In respect of the matter explained in Note 4 (footnote (j)) of thestandalone Ind AS financial statements in respect of suspension of toll collection of anassociate company pursuant to the order of Hon'ble High Court of Allahabad and thematter is pending with Hon'ble Supreme Court of India.

Our opinion is not modified in respect of this matter.

Other Matter

The comparative financial information of the Company for the year endedMarch 31 2017 included in these standalone Ind AS financial statements have beenjointly audited by us along with predecessor auditor. We and joint auditor expressed anunmodified opinion on those financial statements on May 29 2017.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government of India in terms of sub-section(11) of section 143 of the Act we give in the "Annexure 1" a statement on thematters specified in paragraphs 3 and 4 of the Order.

2. As required by section 143 (3) of the Act we report that:

(a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purpose of our audit;

(b) In our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books;

(c) The Balance Sheet Statement of Profit and Loss including theStatement of Other Comprehensive Income the Cash Flow Statement and Statement of Changesin Equity dealt with by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid standalone Ind AS financialstatements comply with the Accounting Standards specified under section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended;

(e) On the basis of written representations received from the directorsas on March 31 2018 and taken on record by the Board of Directors none of the directorsis disqualified as on March 31 2018 from being appointed as a director in terms ofsection 164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure 2" to this report;

(g) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 in our opinion and to the best of our information and according to theexplanations given to us: i. The Company has disclosed the impact of pending litigationson its financial position in its standalone Ind AS financial statements – Refer Note35 to the standalone Ind AS financial statements;

ii. The Company has made provision as required under the applicablelaw or accounting standards for material foreseeable losses if any on long-termcontracts including derivative contracts – Refer Note 16 and 32.6.2 to the standaloneInd AS financial statements; iii. There has been no delay in transferring amounts;required to be transferred to the Investor Education and Protection Fund by the Company.

For S R B C & CO LLP

Chartered Accoutants

(Firm's Registration No. 324982E/E300003)

per Ravi Bansal

Partner

Membership No. 49365

Place of Signature: Mumbai

Date: May 29 2018

ANNEXURE 1

Statement of matters specified in paragraph 3 and 4 of the Companies(Auditor's Report) order 2016

(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

(b) All fixed 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) According to the information and explanations given by themanagement the title deeds of immovable properties included in property plant andequipment are held in the name of the Company.

(ii) The management has conducted physical verification of inventory atthe year-end and no material discrepancies were noticed on such physical verification.

(iii) (a) The Company has granted loans to five companies covered inthe register maintained under section 189 of the Companies Act 2013. In our opinion andaccording to the information and explanation given to us the terms and conditions of theloans are not prejudicial to the interest of the company.

(b) The Company has granted loans to companies covered in the registermaintained under section 189 of the Companies Act 2013. The payment of principle andpayment of interest has been stipulated wherever applicable and the repayments orreceipts of principle amounts and contractual interest have been generally regular as perstipulations.

(c) There are no amounts of loans granted to companies firms or otherparties listed in the register maintained under section 189 of the Companies Act 2013which are overdue for more than ninety days.

(iv) The Company has not granted any loans covered under Section 185 ofthe Companies Act 2013. Further based on the information and explanation give to us theCompany is in the business of providing infrastructural facilities and hence provisions ofsection 186 of the Companies Act 2013 do not apply to the Company however the Companyis in compliance of section 186 (1).

(v) The Company has not accepted any deposits within the meaning ofSections 73 to 76 of the Act and the Companies (Acceptance of Deposits) Rules 2014 (asamended). Accordingly the provisions of clause 3(v) of the Order are not applicable.

(vi) We have broadly reviewed the books of account maintained by theCompany pursuant to the rules made by the Central Government for the maintenance of costrecords under section 148(1) of the Companies Act 2013 and are of the opinion that primafacie the specified accounts and records have been made and maintained. We have nothowever made a detailed examination of the same.

(vii) (a) Undisputed statutory dues including provident fundemployees' state insurance income-tax sales-tax service tax duty of custom dutyof excise value added tax goods and service tax cess and other statutory dues havegenerally been regularly deposited with the appropriate authorities though there have beendelays in a few cases.

(b) According to the information and explanations given to us noundisputed amounts payable in respect of provident fund employees' state insuranceincome-tax service tax sales-tax duty of custom duty of excise value added tax goodsand service tax cess and other statutory dues which were outstanding at the year endfor a period of more than six months from the date they became payable.

(c) According to the records of the Company the dues outstanding ofincome-tax service tax duty of custom duty of excise value added tax and cess onaccount of any dispute are as follows:

Name of Statute Nature of dues Forum where dispute is pending Period to which the amount relates Amount Involved ( Rs. in Crore) Unpaid Amount (Rs. in Crore)
Income Tax Act 1961 Income Tax Income Tax Appellate 2008-09 4.39 -
Income Tax Act 1961 Income Tax Tribunal- Mumbai Income Tax Appellate 2009-10 4.95 -
Income Tax Act 1961 Income Tax Tribunal- Mumbai Income Tax Appellate 2010-11 12.56 -
Tribunal- Mumbai
Commissioner of
Income Tax Act 1961 Income Tax Income Tax (Appeals)- 2011-12 4.19 -
Income Tax Act 1961 Income Tax Mumbai Commissioner of Income Tax (Appeals)- 2012-13 12.10 -
Income Tax Act 1961 Income Tax Mumbai Commissioner of Income Tax (Appeals)- 2013-14 26.73 -
Finance Act Service Tax Mumbai CESTAT 2012-13 1.20 0.60
Madhya Pradesh VAT Act Value Added Tax MP Commercial Tax Appellate Board MP Commercial Tax 2012-13 0.68 0.09
Madhya Pradesh VAT Act Value Added Tax and Entry Tax Appellate Board / 1st Appellate Authority 2013-14 1.43 0.08
Madhya Pradesh VAT Act Value Added Tax Entry Tax and CST Additional Commissioner 2014-15 0.09 0.07
Madhya Pradesh VAT Act Value Added Tax and Entry Tax Deputy Commissioner of Commercial Tax 2015-16 0.37 0.03
Punjab VAT Act Value Added Tax Deputy Commissioner Appeal 2013-14 0.37 0.05
Punjab VAT Act Value Added Tax Deputy Commissioner Appeal 2014-15 0.34 -

(viii) In our opinion and according to the information and explanationsgiven by the management the Company has not defaulted in repayment of loans or borrowingto a financial institution bank or government or dues to debenture holders.

(ix) In our opinion and according to the information and explanationsgiven by the management the Company has utilized the monies raised by way of term loansfor the purposes for which they were raised other than temporary deployment pendingapplication of proceeds. According to the information and explanations given by themanagement the Company has not raised any money by way of initial public offer / furtherpublic offer (including debt instruments).

(x) Based upon the audit procedures performed for the purpose ofreporting the true and fair view of the financial statements and according to theinformation and explanations given by the management we report that no fraud by theCompany or no material fraud on the Company by the officers and employees of the Companyhas been noticed or reported during the year.

(xi) According to the information and explanations given by themanagement the managerial remuneration has been paid / provided in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act 2013.

(xii) In our opinion the Company is not a nidhi company. Thereforethe provisions of clause 3(xii) of the order are not applicable to the Company and hencenot commented upon.

(xiii) According to the information and explanations given by themanagement transactions with the related parties are in compliance with section 177 andsection 188 of Act where applicable and the details have been disclosed in the notes tothe financial statements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us and onan overall examination of the balance sheet the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review and hence reporting requirements under clause 3(xiv) are notapplicable to the Company and not commented upon.

(xv) According to the information and explanations given by themanagement the Company has not entered into any non-cash transactions with directors orpersons connected with him as referred to in section 192 of Act.

(xvi) According to the information and explanations given to us theprovisions of section 45-IA of the Reserve Bank of India Act 1934 are not applicable tothe Company.

For S R B C & CO LLP

Chartered Accoutants

(Firm's Registration No. 324982E/E300003)

per Ravi Bansal

Partner

Membership No. 49365

Place of Signature: Mumbai

Date: May 29 2018

ANNEXURE 2

To the Independent Auditor's Report of even date on the StandaloneFinancial Statements of IL&FS Transportation Networks Limied

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting of IL&FS Transportation Networks Limited ("the Company") as ofMarch 31 2018 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 andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India. 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 the Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting with reference to these standalonefinancial statements based on our audit. We conducted our audit in accordance with theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting (the"Guidance Note") and the Standards on Auditing as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls and both issued by the Institute of Chartered Accountants of India.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 with reference to these standalone financialstatements was established and maintained and if such controls operated effectively in allmaterial respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls over financial reporting with reference tothese standalone financial statements and their operating effectiveness. Our audit ofinternal financial controls over financial reporting included obtaining an understandingof internal financial controls over financial reporting with reference to these standalonefinancial statements assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement includingthe assessment of the risks of material misstatement of the financial statements whetherdue to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the internal financial controlsover financial reporting with reference to these standalone financial statements.

Meaning of Internal Financial Controls Over Financial Reporting WithReference to these Financial Statements

A company's internal financial control over financial reportingwith reference to these standalone financial statements is a process designed to providereasonable assurance regarding the reliability of financial reporting and the preparationof financial statements for external purposes in accordance with generally acceptedaccounting principles. A company's internal financial control over financialreporting with reference to these standalone financial statements includes those policiesand procedures that (1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany; (2) provide reasonable assurance that transactions are recorded as necessary topermit preparation of financial statements in accordance with generally acceptedaccounting principles and that receipts and expenditures of the company are being madeonly in accordance with authorisations of management and directors of the company; and (3)provide reasonable assurance regarding prevention or timely detection of unauthorisedacquisition use or disposition of the company's assets that could have a materialeffect on the financial statements.

Inherent Limitations of Internal Financial Controls Over FinancialReporting With Reference to these Standalone Financial Statements

Because of the inherent limitations of internal financial controls overfinancial reporting with reference to these standalone financial statements including thepossibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls over financial reporting with referenceto these standalone financial statements to future periods are subject to the risk thatthe internal financial control over financial reporting with reference to these standalonefinancial statements may become inadequate because of changes in conditions or that thedegree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects adequateinternal financial controls over financial reporting with reference to these standalonefinancial statements and such internal financial controls over financial reporting withreference to these standalone financial statements were operating effectively as at March31 2018 based on the internal control over financial reporting criteria established bythe Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India.

For S R B C & CO LLP

Chartered Accoutants

(Firm's Registration No. 324982E/E300003)

per Ravi Bansal

Partner

Membership No. 49365

Place of Signature: Mumbai

Date: May 29 2018