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Man Infraconstruction Ltd.

BSE: 533169 Sector: Infrastructure
NSE: MANINFRA ISIN Code: INE949H01023
BSE 00:00 | 19 Oct 39.10 -1.20
(-2.98%)
OPEN

40.00

HIGH

40.05

LOW

38.15

NSE 00:00 | 19 Oct 38.75 -1.40
(-3.49%)
OPEN

39.70

HIGH

40.20

LOW

38.20

OPEN 40.00
PREVIOUS CLOSE 40.30
VOLUME 44630
52-Week high 74.55
52-Week low 35.40
P/E 12.26
Mkt Cap.(Rs cr) 968
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 40.00
CLOSE 40.30
VOLUME 44630
52-Week high 74.55
52-Week low 35.40
P/E 12.26
Mkt Cap.(Rs cr) 968
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Man Infraconstruction Ltd. (MANINFRA) - Auditors Report

Company auditors report

TO THE MEMBERS OF MAN INFRACONSTRUCTION LIMITED

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of MANINFRACONSTRUCTION LIMITED (the Company) which comprise the Balance Sheet as at March 312018 and the Statement of Profit & Loss (including Other Comprehensive Income) theCash Flow Statement and the Statement of Changes in Equity for the year then ended and asummary of significant accounting policies and other explanatory information (thestandalone financial statements).

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters stated in sub-section 5of section 134 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 including other comprehensive income cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards specified in section 133 ofthe Act read with rules made thereunder and the relevant provision of the Act.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; 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 standalonefinancial 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 financial statementsbased on our audit.

While conducting the audit we have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit of the standalone financial statements in accordance with theStandards on Auditing specified under subsection 10 of section 143 of the Act. ThoseStandards require that we comply with ethical requirements and plan and perform the auditto obtain reasonable assurance about whether the standalone financial statements are freefrom material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the standalone financial statements. The procedures selected depend onthe auditor's judgment including the assessment of the risks of material misstatement ofthe standalone 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 standalone financial statements that give a true and fair view inorder to design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of the accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the

overall presentation of the standalone financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.

Opinion

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 including the Ind AS of the state ofaffairs of the Company as at March 31 2018 and its profit (including other comprehensiveincome) its cash flows and the changes in equity for the year ended on that date.

Other Matters

The standalone financial statements of the Company for the year ended March 31 2017were audited by predecessor auditor who expressed an unmodified opinion on thosestatements on May 29 2017.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2016 (theOrder) issued by theCentral Government of India in terms of-section 11 of section 143 of the Act we give inthe "Annexure

A" a statement on the matters specified in the paragraph 3 and

4 of the Order.

2. As required by sub-section 3 of section 143 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 Statement of Profit & Loss the Statement of Cash FlowStatement and the Statement of Changes in Equity dealt with by this Report are inagreement with the books of account;

(d) In our opinion the aforesaid standalone financial statements comply with theIndian Accounting Standards specified under section 133 of the Act;

(e) On the basis of the written representations received from the Directors as on March31 2018 taken on record by the Board of Directors none of the Directors are disqualifiedas on March 31 2018 from being appointed as a Director in terms of sub-section 2 ofsection 164 of the Act;

(f) With respect to the adequacy of the internal financial controls with reference tostandalone financial statements of the Company and the operating effectiveness of suchcontrols we give our separate 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 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 No. 4.02 to the standalone financialstatements;

ii. The Company did not have any material foreseeable losses on long-term contractsincluding derivative contracts and

iii. There have been no amounts which are required to be transferred to the InvestorEducation and Protection Fund by the Company.

For Nayan Parikh & Co.
Chartered Accountants
Firm Registration No. 107023W
K.Y. Narayana
Mumbai Partner
Dated: May 17 2018 Membership No. 060639

Annexure A - referred to in paragraph 1 under "Report on Other Legal andRegulatory Requirements" of our report on even date to the members of the Company onthe standalone financial statements for the year ended March 31 2018

(i) (a) The Company has maintained proper records showing full

particulars including quantitative details and situation of its Property Plant andEquipment except for steel shuttering materials for which as informed to us consideringnature of assets maintenance of quantitative details is not feasible.

(b) According to the information and explanations given to us most of the PropertyPlant and Equipment of the Company were physically verified by the management during theyear except for steel shuttering materials which as informed to us is not feasible toverify. No material discrepancies were noticed on such verification. In our opinion thefrequency of verification is reasonable having regard to the size of the Company and thenature of its Property Plant and Equipment.

(c) According to the information and explanations given to us and based on verificationof records we report that the title deeds of immovable properties excludingself-constructed properties held as Property Plant and Equipment which includes certainproperties mortgaged with lenders who have extended credit facilities to the Company areheld in the name of the Company.

(ii) During the year the management has physically verified the inventory atreasonable interval. We have been informed that the discrepancies noticed on physicalverification as compared to the book records were not material having regards to sizeand nature of operations and have been properly dealt with in the books of account.

(iii) The Company has granted unsecured loans to companies and limited liabilitypartnerships covered in the register maintained under section 189 of the Act.

(a) In our opinion the terms and conditions of such loans are not prima facieprejudicial to the interest of the Company.

(b) According to the information and explanations given to us these loans are for afixed period with an option with

the Company to demand earlier payment and also option with these entities forpre-payments. The repayments and receipts are regular.

(c) There is no amount which is overdue for more than ninety days in respect of suchloans.

(iv) Based on audit process applied by us and according to the information andexplanation given to us in our opinion the Company has complied with the provisions ofsection 185 and section 186 of the Act in respect of the loans and investments made andguarantees and security provided by it.

(v) In our opinion and according to the information and explanation given to us theCompany has not accepted deposits from the public and therefore the provisions of section73 to section 76 or any other relevant provisions of the Act and Rules framed thereunderare not applicable to the Company.

We have been informed that no other order has been passed by Company Law Board orNational Company Law Tribunal or Reserve Bank of India or any court or any other tribunalin this regard.

(vi) We have broadly reviewed the books of account and records maintained by theCompany relating to its construction activity pursuant to the order made by the CentralGovernment for the maintenance of cost records under sub-section 1 of section 148 of theAct and are of the opinion that prima facie the prescribed accounts and records have beenmade and maintained. We have however not made a detailed examination of the records witha view to determining whether they are accurate or complete.

(vii) (a) Based on the records produced before us the Company is

generally regular in depositing with appropriate authorities undisputed statutory duessuch as Provident Fund Employees' State Insurance Sales Tax Income Tax Service TaxCustom Duty Goods and Service Tax Value Added Tax cess and other applicable statutorydues with the appropriate authorities. There are no arrears as at March 31 2018 whichwere due for more than six months from the date they became payable.

(b) The details of disputed prescribed statutory dues that have not been paid by theCompany are as under:

Name of the Statute Nature of Dues Forum where dispute is pending Financial

Year

Amount

(')

Amount paid under Protest

(')

TNGST

Act1959

Penalty The H'ble High Court of Madras 2003-04 19.36 lakhs -
TNGST Act 1959 Penalty The H'ble High Court of Madras 2004-05 17.52 lakhs -
TNGST Act 1959 Sales Tax The Assistant Commissioner (CT) Chennai 2006-07 0.31 lakhs -

 

Name of the Statute Nature of Dues Forum where dispute is pending Financial

Year

Amount

(')

Amount paid under Protest

(')

Income Tax Act 1961 Interest Asst.

Commissioner of Income Tax (Fringe Benefit Tax)

2008-09 1.72 lakhs
Income Tax Act 1961 Tax and Interest Commissioner of Income Tax(Appeals) 2013-14 6.12 lakhs -
Finance Act 1994 Service

Tax

Customs Central Excise and Service Tax Appellate Tribunal (CESTAT) 2009-10 80.65

lakhs

5.49

lakhs

Finance Act 1994 Interest

&

Penalty

Customs Central Excise and Service Tax Appellate Tribunal (CESTAT) 2009-10 & 10-11 2179.16

lakhs

108.95

lakhs

Finance Act 1994 Interest

&

Penalty

Commissioner of Service Tax (Appeals) 2009-10 to 11-12 7.26 lakhs 0.28

lakhs

Finance Act 1994 Service

Tax

Customs Central Excise and Service Tax Appellate Tribunal (CESTAT) 2012-13 to 13-14 6645.22

lakhs

332.26

lakhs

(viii) Based on our audit procedures and according to the information and explanationgiven to us we are of the opinion that the Company has not defaulted in repayment ofloans or borrowing to banks financial institutions government or dues to debentureholders. There were no debenture holders at any time during the year.

(ix) The Company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) nor any term loans during period under audit.Accordingly provision of this clause of the order is not applicable to the Company.

(x) During the course of our examination of the books and records of the Companycarried out in accordance with the generally accepted auditing practices in India andaccording to the information and explanations given to us no instances of material fraudby the Company or on the Company by its officers and employees have been noticed orreported during the year.

(xi) According to the information and explanation provided to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

(xii) In our opinion and according to the information and explanation given to us theCompany is not a Nidhi Company. Accordingly Clause 3(xii) of the Order is not applicable.

(xiii) In respect of transactions with related parties the Company has compliedprovisions of sections 177 and section 188 of the Act wherever applicable. Necessarydisclosures relating to related party transactions have been made in the financialstatements as required by the applicable accounting standard.

(xiv) The Company has not made any preferential al lotment or private placement ofshares or fully or party convertible debentures during the year under review and hence theclause 3(xiv) of the Order is not applicable to the Company.

(xv) The Company has not entered into non-cash transaction with directors. We have beeninformed that no such transactions have been entered into with persons connected withdirectors. Accordingly para 3(xv) of the Order is not applicable to the Company.

(xvi) The Company is not required to get registered under 45-IA of the Reserved Bank ofIndia Act 1934.

For Nayan Parikh & Co. Chartered Accountants
Firm Registration No. 107023W
K.Y. Narayana
Mumbai Partner
Dated: May 17 2018 Membership No. 060639

Annexure B referred to in paragraph 2(f) under "Report on Other Legal andRegulatory Requirements" of our Independent Auditor's report of even date to themembers of Man Infraconstruction Limited (the Company) on the Standalone Indian AccountingStandards Financial Statements for the year ended March 31 2018

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 with reference to financial statementsof the Company as of March 31 2018 in conjunction with our audit of the standalonefinancial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's Board of Directors is responsible for establishing and maintaininginternal financial controls based on the internal control with reference to 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 (the Guidance Note) issued by the Institute of Chartered Accountantsof India (ICAI). These responsibilities include the design implementation and maintenanceof adequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to company's policiesthe safeguarding 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 Act.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note and the Standards on Auditing specified undersub-section 10 of section 143 of the Act to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls with reference to financial statements wereestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system with reference to financial statements and theiroperating effectiveness. Our audit of internal financial controls with reference tofinancial statements included obtaining an understanding of internal financial controlswith reference to financial statements assessing the risk that a material weaknessexists and testing and evaluating the design and operating effectiveness of internalcontrol based on the assessed risk. The procedures selected depend on the auditor'sjudgement including the assessment of the risks of material misstatement of the financialstatements 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 systemwith reference to financial statements.

Meaning of Internal Financial Controls with reference to Financial Statements

A company's internal financial control with reference to financial statements is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control withreference to financial Statements includes those policies and procedures that (1) pertainto the maintenance of records that in reasonable detail accurately and fairly reflect

the transactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 with reference to FinancialStatements

Because of the inherent limitations of internal financial controls with reference tofinancial statements including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls withreference to financial statements to future periods are subject to the risk that theinternal financial control with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system with reference to financial statements and such internalfinancial controls with reference to financial statements were operating effectively as atMarch 31 2018 based on the internal control with reference to financial statementscriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note issued by the ICAI.

For Nayan Parikh & Co.
Chartered Accountants
Firm Registration No. 107023W
K.Y. Narayana
Mumbai Partner
Dated: May 17 2018 Membership No. 060639