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MEP Infrastructure Developers Ltd.

BSE: 539126 Sector: Infrastructure
NSE: MEP ISIN Code: INE776I01010
BSE 00:00 | 17 Feb 35.80 -0.40
(-1.10%)
OPEN

34.80

HIGH

36.80

LOW

29.80

NSE 00:00 | 17 Feb 35.95 -0.30
(-0.83%)
OPEN

34.70

HIGH

37.00

LOW

30.10

OPEN 34.80
PREVIOUS CLOSE 36.20
VOLUME 123562
52-Week high 45.30
52-Week low 24.90
P/E
Mkt Cap.(Rs cr) 657
Buy Price 35.80
Buy Qty 6.00
Sell Price 37.00
Sell Qty 4.00
OPEN 34.80
CLOSE 36.20
VOLUME 123562
52-Week high 45.30
52-Week low 24.90
P/E
Mkt Cap.(Rs cr) 657
Buy Price 35.80
Buy Qty 6.00
Sell Price 37.00
Sell Qty 4.00

MEP Infrastructure Developers Ltd. (MEP) - Auditors Report

Company auditors report

To

The Members of

MEP INFRASTRUCTURE DEVELOPERS LIMITED

REPORT ON THE STANDALONE IND AS FINANCIAL STATEMENTS

We have audited the accompanying Standalone Ind AS Financial Statements of MEPINFRASTRUCTURE DEVELOPERS LIMITED ("the Company") which comprise the Balancesheet as at March 31 2018 and the Statement of Profit and Loss (including OtherComprehensive Income) the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and a summary of the significant accounting policies and otherexplanatory information ("Standalone Financial Statements").

MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE 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 Standalone Financial Statements that give a true and fair view of the state ofaffairs financial performance cash flows and statement of changes in equity of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) specified under Section 133 of the Actread the Companies (Indian Accounting Standards) Rules 2015.

This responsibility also includes the 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.

AUDITORS' RESPONSIBILITY

Our responsibility is to express an opinion on these Standalone Financial Statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder. We conducted our audit inaccordance with the Standards on Auditing issued by Institute of Chartered Accountants ofIndia as specified under Section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the Standalone Financial Statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the Standalone Financial Statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theStandalone Financial Statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial controls relevant to the Company'spreparation of the Standalone Financial Statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by the Company's directors as well as evaluating theoverall 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 Standalone Financial Statements give the information required by the Act inthe manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India including Ind AS of the state of affairs(financial position) of the Company as at March 31 2018 and its profit including totalcomprehensive income its cash flows and the statement of changes in equity for the yearended on that date.

OTHER MATTERS

The comparative financial information of the Company for the year ended on March 312017 are based on previously issued Standalone IND AS Financial Statements prepared inaccordance with Companies (Indian Accounting Standards) Rules 2015 audited bypredecessor auditor for the year ended on March 31 2017 dated May 25 2017 expressed amodified opinion on those Standalone Ind AS Financial Statements.

Our opinion is not modified in respect of these matters.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

I. 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 ofthe Act we give in the Annexure A a statement on the matters specified in paragraphs 3and 4 of the Order.

II. 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 Cash Flow Statement and Statement of Changes in Equity dealt with by thisReport are in agreement with the books of account.

d) in our opinion the aforesaid Standalone Financial Statements comply with the IndianAccounting Standards (Ind AS) specified under Section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015.

e) On the basis of the written representations received from the directors and takenon record by the Board of Directors none of the directors is disqualified as on March 312018 from being appointed 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 B" to this report.

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 as amended in ouropinion and 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 Standalone Financial Statements – Refer Note 36 to the StandaloneFinancial Statements.

ii. The Company does not have any long-term contracts including derivative contractsfor which there are any material foreseeable losses.

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

For G. D. Apte & Co.
Chartered Accountants
Firm Registration Number: 100515W
Chetan R. Sapre
Place : Mumbai Partner
Date : May 23 2018 Membership No: 116952

Annexure - A

(Referred to in paragraph I under the heading "Report on Other Legal andRegulatory Requirements" of our report of even date)

i. a) The Company has maintained proper records showing full particulars includingquantitative details and location of property plant and equipment for the year.

b) The Company has regular programme of physical verification of its fixed assets bywhich all fixed assets are verified in a phased manner over a period of two years. In ouropinion this periodicity of physical verification is reasonable having regard to the sizeof the company and the nature of its assets. Pursuant to the programme certain fixedassets were physically verified during the year and no material discrepancies were found.

c) According to the information and explanations given to us and based on the recordsproduced the title deeds of the immovable properties held by the Company are in the nameof the Company.

ii. The company does not have any physical inventory as on the balance sheetaccordingly reporting under clause 3 (ii) of the order is not applicable to the Company.

iii. a) During the year the company has granted unsecured loans to fourteen companiescovered in the register maintained under Section 189 of the Act. In our opinion andaccording to the information and explanations given to us the terms and conditions of theloan are not prejudicial to the company's interest.

b) In respect of the loans granted to the companies listed in the register maintainedunder section 189 of the Act there is no principal amount due for payment during the yearand the borrowers shall repay the principal amount as stipulated in the agreement.However there is no stipulation of schedule for payment of interest and hence we areunable to make comment on regularity of payment of interest.

c) According to the information and explanations given to us there is no amountof loan granted to the companies listed in the register maintained under section 189 ofthe Act which are overdue and outstanding for more than ninety days.

iv. According to the information and explanations given to us there are no loansinvestments guarantees and securities in respect of which provisions of section 185 andsection 186 of the Act are applicable.

v. In our opinion and according to the information and explanations given to us thecompany has not accepted any deposits as per the directives issued by the Reserve Bank ofIndia and the provisions of sections 73 to 76 of the Act and the rules framed.Accordingly paragraph 3(v) of the order is not applicable to the company.

vi. We have broadly reviewed the books of account maintained by the company pursuant tothe rules prescribed by the Central Government for the maintenance of cost records undersection 148(1) of the Act and are of the opinion that prima facie the specified accountsand records have been made and maintained. We have not however made a detailedexamination of the records.

vii. a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including Provident fund Employees' StateInsurance Sales tax Service tax Value added tax Cess and other material statutory dueshave generally been regularly deposited during the year by the Company with theappropriate authorities except for dues of Income tax and Goods and Service tax in whichthere have been significant delays in few instances. According to the information andexplanation given to us the company did not have any dues on account of wealth tax dutyof customs duty of excise.

b) On the basis of examination of the relevant records and according to the informationand explanations given to us no undisputed amounts payable in respect of Provident FundEmployees' State insurance Value Added Tax Goods and Service Tax Duty of Customs Dutyof Excise and Cess were outstanding as at March 31 2018 for a period of more than sixmonths from the date they became payable. However in case of undisputed statutory duesthe amounts outstanding for more than six months with respect to TDS amounting to Rs505.35 lakhs and GST amounting to Rs 110.68 lakhs were paid subsequently before the dateof audit report.

c) According to the information and explanation given to us there are no dues ofincome tax sales- tax wealth tax service tax duty of customs duty of excise valueadded tax Goods and Service Tax Act and cess which have not been deposited on account onany dispute except for the following:

( Rs. in Lakhs)
Name of Statute Nature of Dues Forum where Dispute is pending Period to which amount relates (Financial Year) Gross amount involved
Maharashra Value Added Tax Act 2002 MVAT Asst. Comm. Of Sales Tax (D-104) Mumbai FY 2013-14 20.19

viii. In our opinion and according to the information and explanation given to us thecompany had not defaulted in repayments of dues of financial institutions and banks duringthe year. The company does not have any loans or borrowings from the Government and hasnot issued any debentures.

ix. According to the information and explanations given to us and on the basis ofexamination of records the Company has neither obtained new term loans nor raised anymoney by way of initial public offer or further public offer of shares and/or debtinstruments during the year. Therefore the provisions of clause (ix) of the Order are notapplicable to the Company.

x. According to the information and explanation given to us no fraud on or by thecompany by its officers and employees has been noticed or reported during the course ofour audit.

xi. According to the information and explanations given to us and based on ourexamination of records of the Company the managerial remuneration has been paid orprovided in accordance with the requisite approvals mandated by the provisions of section197 read with Schedule V to the Act.

xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company and accordingly the provisions of clause (xii) of the Orderare not applicable to the Company.

xiii. According to the information and explanations given to us and based on ourexamination of records of the Company the transactions entered with related parties arein compliance with provisions of section 177 and 188 of the Act where applicable and thedetails of such transactions are disclosed in the Standalone Financial Statements asrequired by the applicable accounting standards.

xiv. According to the information and explanations given to us and based on ourexamination of records of the Company money raised by way of Qualified InstitutionalPlacement by the Company in the month of April 2018 were applied before the date of thisreport for the purpose for which they were raised.

xv. In our opinion and according to the information and explanations given to us andbased on our examination of records of the Company the Company during the year has notentered into any non-cash transactions with directors or persons connected with thedirectors and accordingly the provisions of clause (xv) of the Order are not applicable tothe Company.

xvi. In our opinion and according to the information and explanations given to us theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct1934 and accordingly the provisions of clause (xvi) of the Order are not applicable tothe Company.

For G. D. Apte & Co.
Chartered Accountants
Firm Registration Number: 100515W
Chetan R. Sapre
Place : Mumbai Partner
Date : May 23 2018 Membership No: 116952

Annexure - B

(Referred to in paragraph 1 (h) under ‘Report on Other Legal and RegulatoryRequirements' of our report of even date)

REPORT ON THE INTERNAL FINANCIAL

CONTROLS OVER FINANCIAL REPORTING UNDER CLAUSE (I) OF SUB-SECTION 3 OF SECTION 143 OFTHE COMPANIES ACT 2013 ("THE ACT")

We have audited the internal financial controls over financial reporting of MEPINFRASTRUCTURE DEVELOPERS LIMITED ("the Company") as of March 31 2018 inconjunction with our audit of the Standalone Ind AS Financial Statements of the Companyfor 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 Reporting("the Guidance Note") issued by the Institute of Chartered Accountants of India(ICAI). These 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 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 and the Standards on Auditing issued by the ICAI and deemed to beprescribed under Section 143(10) of the Companies Act 2013 to the extent applicable toan audit of internal financial controls. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 Standalone Ind AS Financial Statements whether due to fraudor 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 Standalone Ind AS Financial Statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of StandaloneInd AS Financial Statements in accordance with generally accepted accounting principlesand that receipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on the StandaloneInd AS 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as of March 31 2018 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note issued by the ICAI.

For G. D. Apte & Co.
Chartered Accountants
Firm Registration Number: 100515W
Chetan R. Sapre
Place : Mumbai Partner
Date : May 23 2018 Membership No: 116952