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Man Infraconstruction Ltd.

BSE: 533169 Sector: Infrastructure
NSE: MANINFRA ISIN Code: INE949H01023
BSE 10:31 | 20 Aug 42.65 1.25
(3.02%)
OPEN

41.95

HIGH

43.65

LOW

41.55

NSE 10:24 | 20 Aug 42.50 1.05
(2.53%)
OPEN

41.60

HIGH

43.50

LOW

41.60

OPEN 41.95
PREVIOUS CLOSE 41.40
VOLUME 21112
52-Week high 74.55
52-Week low 40.15
P/E 13.37
Mkt Cap.(Rs cr) 1,056
Buy Price 42.60
Buy Qty 473.00
Sell Price 42.65
Sell Qty 105.00
OPEN 41.95
CLOSE 41.40
VOLUME 21112
52-Week high 74.55
52-Week low 40.15
P/E 13.37
Mkt Cap.(Rs cr) 1,056
Buy Price 42.60
Buy Qty 473.00
Sell Price 42.65
Sell Qty 105.00

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 312017 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 insub-section 5 of section 134 of the Companies Act 2013 (the Act) with respect to thepreparation of these standalone financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards specified in theCompanies (Indian Accounting Standards) Rules 2015 (as amended) under section 133 of theAct read with the Companies (Indian Accounting Standards) Amendment Rules 2016 and therelevant 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 underthe 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 selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the standalone financial statements whether due to fraud or error. Inmaking those risk assessments the auditor considers internal financial control relevantto the Company's preparation of the standalone financial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstances.

An audit also includes evaluating the appropriateness of the accounting policies usedand the reasonableness of the accounting estimates made by the Company's Directors aswell as evaluating 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 2017 and its profit (including other comprehensiveincome) its cash flows and the changes in equity for the yearended on that date.

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 the"Annexure A" a statement on the matters specified in the paragraph 3and 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 ofthose 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 ofaccount;

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

(e) On the basis of the written representations received from the Directors as on March31 2017 taken on record by the Board of Directors none of the Directors are disqualifiedas on March 31 2017 from being appointed as a Director in terms ofsub-section 2 ofsection164 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 we give 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 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;

iii. "there has been no amounts which are required to be transferred to theInvestor Education and Protection Fund by the Company and

iv. The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Specified Bank Notes during the period from November 82016 to December 30 2016 and these are in accordance with books of account maintained bythe Company - Refer Note 2.11 to the standalone financial statements.

For G. M. KAPADIA & CO.
Chartered Accountants
Firm Registration No. 104767W
ATULSHAH
Mumbai Partner
Dated: May 29 2017 Membership No. 039569

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 2017

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of its Property Plant and Equipment except for steelshuttering materials for which as informed to us considering nature of assetsmaintenance 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 undersection 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 optionwith these entities for pre-payments. The repayments and receipts are regular.

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

(iv) Based on audit process applied by us in our opinion the Company has compliedwith the provisions of section 185 and section 186 of the Act in respect of the loans andinvestments made and guarantees 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 there underare 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 oranycourtorany other tribunal.

(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 indepositing with appropriate authorities applicable undisputed statutory dues such asProvident Fund Employees' State Insurance Sales Tax Income Tax Service Tax CustomDuty and other material statutory dues. There are no arrears as at March 312017 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 (?)
TNGSTAct 1959 Penalty Tamil Nadu Sales Tax Appellate Tribunal Chennai 2003-04 19.36 lakhs
TNGSTAct 1959 Penalty Tamil Nadu Sales Tax Appellate Tribunal Chennai 2004-05 17.52 lakhs
TNGSTAct 1959 Sales Tax Tamil Nadu Sales Tax Appellate Tribunal Chennai 2006-07 0.31 lakhs

 

Name of the Statute Nature of Dues Forum where dispute is pending Financial Year Amount (?)
Income Tax Act 1961 Interest Asst. Commissioner of Income Tax (Fringe Benefits Tax) 2006-07 0.33 lakhs
Income Tax Act 1961 Interest Asst. Commissioner of Income Tax (Fringe BenefitTax) 2008-09 1.72 lakhs
Income Tax Act 1961 Tax and Interest Commissioner of Income Tax(Appeals) 2013-14 81.12 lakhs
Finance Act 1994 Service Tax Customs Central Excise and Service Tax Appellate Tribunal (CESTAT) 2009-10 80.65 lakhs
Finance Act 1994 Interest & Penalty Hon'ble High Court ofBombay 2009-10 & 10-11 2179.16 lakhs
Finance Act 1994 Interest & Penalty Commissioner of Service Tax (Appeals) 2009-10 to 11-12 7.26 lakhs
Finance Act 1994 Interest & Penalty Customs Central Excise and Service Tax Appellate Tribunal (CESTAT) 2011-12 0.73 lakhs
Finance Act 1994 Service Tax Hon'ble High Court ofBombay 2012-13 to 13-14 6645.22 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 are no debenture holders at any time during the year.

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

(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 provisionsofsection 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 section 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 allotment or private placement ofshares or fully or party convertible debentures during the year.

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

(xvi) "The Company is not required to get registered under45-IA of the ReserveBank of India Act 1934.

For G. M. KAPADIA & CO.
Chartered Accountants
Firm Registration No. 104767W
ATULSHAH
Mumbai Partner
Dated: May 29 2017 Membership No. 039569

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 2017

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 over financial reporting of the Companyas of March 31 2017 in conjunction with our audit of the standalone financial statementsof 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 over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the Guidance Note) issued by the Institute of Chartered Accountants of India(ICAI).^ese responsibilities include the design implementation and maintenance ofadequate 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 underthe Act.

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 and the Standards on Auditing specified under sub-section 10 ofsection 143 of the Act to the extent applicable to an audit of internal financialcontrols both applicable to an audit of Internal Financial Controls and both issued bythe ICAI. "ffiose 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 were 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 "Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material misstatement of the financial statements whether due to fraud orerror.

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 controlssystemover 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 March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note issued by theICAI.

For G. M. KAPADIA & CO.
Chartered Accountants
Firm Registration No. 104767W
ATULSHAH
Mumbai Partner
Dated: May 29 2017 Membership No. 039569