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Nila Infrastructures Ltd.

BSE: 530377 Sector: Infrastructure
NSE: NILAINFRA ISIN Code: INE937C01029
BSE 14:40 | 20 Jul 11.95 0.29
(2.49%)
OPEN

11.90

HIGH

12.19

LOW

11.70

NSE 14:29 | 20 Jul 11.95 0.35
(3.02%)
OPEN

11.85

HIGH

12.20

LOW

11.35

OPEN 11.90
PREVIOUS CLOSE 11.66
VOLUME 72954
52-Week high 23.64
52-Week low 11.55
P/E 20.96
Mkt Cap.(Rs cr) 471
Buy Price 11.90
Buy Qty 1345.00
Sell Price 11.99
Sell Qty 1000.00
OPEN 11.90
CLOSE 11.66
VOLUME 72954
52-Week high 23.64
52-Week low 11.55
P/E 20.96
Mkt Cap.(Rs cr) 471
Buy Price 11.90
Buy Qty 1345.00
Sell Price 11.99
Sell Qty 1000.00

Nila Infrastructures Ltd. (NILAINFRA) - Auditors Report

Company auditors report

To the Members of Nila Infrastructures Limited

Report on the Standalone Financial Statements

We have audited the accompanying Standalone financial statements of NilaInfrastructures Limited (the "Company") which comprise the Balance Sheet as atMarch 31 2017 the Statement of Pro t and Loss and the Cash Flow Statement for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for matters stated in Section 134(5) ofthe companies Act 2013 (the "Act") with respect to the preparation of thesestandalone financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation 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 statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

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 Accounting and AuditingStandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditors'judgment including the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorsconsider internal financial control relevant to the Company's preparation of the 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 standalonefinancial 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 of the state of affairs of the Companyas at 31 March 2017 its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by 'the Companies (Auditor's Report) Order 2017' ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Companies Act 2013 we give in the "Annexure-1" a statementon the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.

2. 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 purpose 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 ofPro t and Loss and the Cash Flow Statement dealt with by this Report are in agreementwith the books of accounts; (d) In our opinion the aforesaid standalone financialstatements comply with the Accounting Standards specified under Section 133 of the Actread with Rule 7 of the Companies (Accounts) Rules 2014.

(e) On the basis of written representations received from the directors as on March 312017 and taken on record by the Board of

Directors none of the directors is disquali ed as on March 31 2017 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 2" 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 2014 in our opinionand to the best of our information and according to the explanations given to us: i. TheCompany has disclosed the impact of pending litigations on its financial position in itsfinancial statements Refer Note 24 to the financial statements; ii. The Company did nothave any long-term contracts including derivative contracts for which there were anymaterial foreseeable losses; iii. There has been no delay in transferring amountsrequired to be transferred to the Investor Education and Protection Fund by the Company;iv. The Company has provided requisite disclosures in the financial statements as toholdings as well as dealings in Speci ed Bank Notes during the period from 8th November2016 to 30th December 2016. Based on audit procedures and relying on the managementrepresentation we report that the disclosures are in accordance with books of accountmaintained by the Company and as produced to us by the Management Refer Note 32.

For O. P. Bhandari& Co.

Chartered Accountants

Firm Registration Number: 112633W

O. P. Bhandari

Place: Ahmedabad Partner

Date: May 26 2017 Membership Number: 34409

Annexure 1

To Independent Auditors' Report of even date on the Standalone Financial Statements ofNila Infrastructures Limited

i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Property Plant and Equipments .

(b) The Property Plant and Equipments of the Company have been physically veri ed bythe Management during the year and no material discrepancies between the book records andthe physical inventory have been noticed. In our opinion the frequency of veri cation isreasonable.

(c) In our opinion and according to information and explanations given to us and on thebasis of an examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company. ii. As explained to us physical verication of the inventories have been conducted at reasonable intervals by the managementwhich in our opinion is reasonable having regard to the size of the Company and nature ofits inventories. No material discrepancies were noticed on such physical veri cation. iii.According to the information and explanations given to us the Company has not granted anyloans secured or unsecured to companies rms Limited Liability Partnerships or otherparties covered in the register maintained under Section 189 of the Companies Act 2013.Accordingly the provisions of clause 3 (iii) (a) (b) and (c) of the Order ar the notapplicable to the Company and hence not commented upon. iv. According to information andexplanations given to us the company has complied with provisions of section 185 and 186of the companies Act 2013 in respect of loans investments guarantees and security. v.According to the information and explanations given to us the Company has not acceptedany deposit from the public in accordance with the provisions of Section 73 to 76 or anyother relevant provisions of the Act and the rules framed there under. Accordinglyparagraph 3(v) of the Order is not applicable to the Company. vi. We have broadly reviewedthe books of account maintained by the Company in respect of products where pursuant tothe Companies (Cost Records and Audit) Rules 2014 prescribed by the Central Governmentunder Sub Section (1) of Section 148 of the Act applicable in respect of certainactivities undertaken by the Company and are of the opinion that prima facie theprescribed accounts and records have been made and maintained. We have not however madea detailed examination of the records with a view to determine whether they are accurateor complete. vii. (a) According to the information and explanations given to us and therecords of the Company examined by us in our opinion undisputed statutory dues includingprovident fund employees' state insurance income-tax sales tax service tax valueadded tax cess and other material statutory dues have generally been regularly depositedwith the appropriate authorities. (b) According to the information and explanation givento us no undisputed amounts payable in respect of provident fund employees' stateinsurance income-tax sales tax service tax value added tax cess and other materialstatutory dues were outstanding at the year end for a period of more than six monthsfrom the date they became payable.

(c) According to the information and explanations given to us dues that have not beendeposited by the Company on account of disputes are as follow:

Name of the statute Nature of dues Amount (`) Period to which the amount relates Forum where the dispute is pending
The Income Tax Act 1961 Tax Liability Including Interest 7593770/- Assessment year 2011-12 Deputy Commissioner of Income Tax (Appeals)

viii. In our opinion and according to the information and explanations given to us theCompany has not defaulted during the year in repayment of dues to its financialinstitutions bankers and government. The Company did not have any outstanding debenturesduring the year. ix. According to the information and explanations given by themanagement the Company has not raised any money by way of initial public offer / furtherpublic offer / debt instruments) during the period. Money raised by term loans during theperiod was applied for the purposes for which those are raised. x. According to theinformation and explanation given to us no material fraud by the Company or on theCompany by its of cers or employees has been noticed or reported during the course of ouraudit. xi. According to information and explanation given to us managerial remunerationhas been paid or provided in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the companies Act. xii. According toinformation and explanation given to us the company is not a Nidhi Company as prescribedunder Section 406 of the Act. Accordingly the provisions of Clause 3(xii) of the Orderare not applicable to the Company. xiii. According to the information and explanationsgiven to us all transaction with the related parties are in compliance with section 177and 188 of Act where applicable and the details have been disclosed in the FinancialStatements as required by the applicable accounting standards. xiv. Company has madepreferential allotment of shares during the year under review. The company has compliedwith requirement of section 42 of the Companies Act 2013 and amount raised have been usedfor the purposes for which the fund were raised. However the Company has not made anypreferential allotment or private placement of fully or partly convertible debentures. xv.According to the information and explanations given to us and the records of the Companyexamined by us the company has not entered into any non-cash transactions with directorsor persons connected to him. xvi. According to information and explanations given to usthe company is not required to be registered under sections 45-IA of the Reserve Bank ofIndia Act 1934.

For O. P. Bhandari& Co.

Chartered Accountants

Firm Registration Number: 112633W

O. P. Bhandari

Place: Ahmedabad Partner

Date: May 26 2017 Membership Number: 34409

Annexure 2

To the Independent Auditor's' Report of even date on the Standalone FinancialStatements of Nila Infrastructure Limited

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013

We have audited the internal financial controls over financial reporting of NilaInfrastructures Limited ("the Company") as of March 31 2017 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.

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). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired 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 as specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of internal financial controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects. Our audit involves performing procedures to obtainaudit evidence about the adequacy of the internal financial controls system over financialreporting and their operating effectiveness. Our audit of internal financial controls overfinancial reporting included obtaining an understanding of internal financial controlsover financial reporting assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement including theassessment of the risks of material misstatement of the financial statements whether dueto 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 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 on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For O. P. Bhandari& Co.

Chartered Accountants

Firm Registration Number: 112633W

O. P. Bhandari

Place: Ahmedabad Partner

Date: May 26 2017 Membership Number: 34409