Perfect Infraengineers Ltd.
|BSE: 532595||Sector: Engineering|
|NSE: PERFECT||ISIN Code: INE925S01012|
|BSE 05:30 | 01 Jan||Perfect Infraengineers Ltd|
|NSE 05:30 | 01 Jan||Perfect Infraengineers Ltd|
|BSE: 532595||Sector: Engineering|
|NSE: PERFECT||ISIN Code: INE925S01012|
|BSE 05:30 | 01 Jan||Perfect Infraengineers Ltd|
|NSE 05:30 | 01 Jan||Perfect Infraengineers Ltd|
Independent Auditor's Report on Standalone Financial Statements
INDEPENDENT AUDITOR'S REPORT
To the Members of PERFECT INFRAENGINEERS LIMITED
Report on the Audit of the Standalone Financial Statements
We have audited the standalone financial statements of PERFECT INFRAENGINEERS LIMITED (the Company) which comprise the balance sheet as at 31stMarch 2019 and the statement of Profit and Loss and statement of cash flows for the year then ended and notes to the financial statements including a summary of significant accounting policies.
In our opinion and to the best of our information and according to the explanations given to us the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at March 31 2019 and its statement of Profit &loss of the profits and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Companies Act 2013. Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Companies Act 2013 and the Rules thereunder and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Information Other than the Financial Statements and Auditor's Report
The Company's Board of Directors is responsible for the other information. The other information comprises of the information included in the Board of Directors report but does not include the financial statements and our auditor's report thereon.
Our opinion on the financial statements does not cover the other information and we will not express any form of assurance conclusion thereon
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act 2013 (the Act) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India including the accounting Standards specified under section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records relevant to the preparation and presentation of the financial statement that give a true and fair view and are free from material misstatement whether due to fraud or error.
In preparing the financial statements management is responsible for assessing the Company's ability to continue as a going concern disclosing as applicable matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement whether due to fraud or error and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if individually or in the aggregate they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements whether due to fraud or error design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion forgery intentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Companies Act 2013 we are also responsible for expressing our opinion on whether the company has adequate internal financial controls system in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and based on the audit evidence obtained whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists we are required to draw attention in our auditor's report to the related disclosures in the financial statements or if such disclosures are inadequate we are required to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of the financial statements including the disclosures and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding among other matters the planned scope and timing of the audit and significant audit findings including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and where applicable related safeguards.
Emphasis of Matter
The company in absence of any future outcome has not made any provision for doubtful debts either for the cases filed with NCLT or civil cases filed against the company.
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 Companies Act 2013 we give in the Annexure-A a statement on 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 best of 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 the Company so far as it appears from our examination of those books.
c.The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.
d. In our opinion the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.
e. We have not received the written representations received from the directors as on 31st March 2019 taken on record by the Board of Directors so as to comment that none of the directors are disqualified as on 31st March 2019 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 financial reporting of the Company and the operating effectiveness of such controls refer to our separate Report in Annexure- B.
g. With respect to the other matters to be included in the Auditor'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 the explanations given to us:
i. The Company does not have any pending litigations which would impact its financial position except those mentioned in notes to accounts to the financial statement.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.
For JCR & Co
Mem. No. 160688
ANNEXURE A TO THE INDEPENDENT AUDITOR'S REPORT
Referred to in paragraph 1 of our Report of even date to the Members of PERFECT INFRAENGINEERS LIMITED on the Standalone Financial Statements of the Company for the year ended 31st March 2019.
On the basis of such checks as we considered appropriate and/or according to the information and details given to us during the course of our audit we report that:
(i). In respect of Company's Fixed Assets:
(a). The Company has maintained records showing full particulars including quantitative details and the situation of Fixed Assets.However asset tagging needs to be done as part of improvement and demarcation.
(b). The Fixed Assets have been physically verified by the management at reasonable intervals and no material discrepancies were noticed on such verification.
(c). According to the information and explanations given to us and the records examined by us and based on the examination of the title deeds comprising the immovable properties are held in the name of the Company. However we could verify only the photocopies as original title deeds for most of the properties were lying with the bank as collateral securities.
(ii). As explained to us the Inventory has been physically verified by the management at reasonable intervals and no material discrepancies were noticed on such physical verification. The discrepancies noticed on verification were not material and the same have been properly dealt with. However the system of review needs improvement.
(iii). According to the information and explanations given to us the Company has not granted/taken any loans secured or unsecured to/from companies firms limited liability partnerships or other parties listed in the register maintained under Section 189 of the Companies Act 2013. Hence the provisions of Clause(iii) of the Order are not applicable.
(iv). According to the information and explanations given to us and the records examined by us the company has not granted any loans during the year covered under Sections 185 &186 of the Act. Investments made by the Company are in compliance with the provisions of Section 186 of the Act.
(v). According to the information and explanations given to us the Company has not accepted any deposits from the public during the year covered under Sections 73 to 76 of the Act.
(vi). According to the information and explanations given to us maintenance of Cost Records has not been prescribed by the Central Government under Sub-section (1) of Section 148 of the Act.
(vii). According to the information and explanations given to us in respect of Statutory Dues:
(a). According to the information and explanations given to us and based on the records of the Company examined by us except for Rs.104.71 Lakhs due towards TDS PT and GST (Details provided below) the company is regular in depositing the undisputed Statutory Dues including Provident Fund Employees State Insurance Income Tax Goods & Service Tax Custom Duty Value Added Tax Cess and any other material Statutory Dues to the extent applicable with appropriate authorities in India.
Details of Statutory Dues outstanding as on 31.03.2019:
The above amounts are excluding of interest on delay and penal interest/late fee.
(b). According to the information and explanations given to us and based on the records examined by us there are no dues in respect of Income Tax Service Tax Customs Duty and Excise Duty which have not been deposited on account of any dispute.
(c). Details of dues of Central Sales Tax and Value Added Tax which have not been deposited as on 31st March 2019 on account of disputes are given below:
(viii). The company has availed sanctioned soft loan of Rs. 750 Lakhs from Government (Technology Development Board) out of which Rs. 187 Lakhs has been received during the year. But no amount was raised through the Debentures. On the basis of our examination of records of the Company we found few delays in repayment of borrowings repayable on demand have arisen in case of ICICI Bank Limited for the month of December 2018 & January 2019. The amount is Rs. 482870 (Principal- 451480 + Interest- 31390). However the above account has been settled in March 2019 but settlement advice is awaited.
(ix). Based on our audit procedures and according to the information given to us by the management the Company has not raised any money by way of initial public offer or further public offer (including debt instruments) or taken any term loan (except mentioned above) during the year. Hence the provisions of Clause(ix) of the Order are not applicable.
(x). During the course of our examination of the books and records of the Company carried in accordance with the Auditing Standards generally accepted in India we have neither come across any instance of fraud by the Company or on the Company by its officers or employees noticed or reported during the year not have been informed of any such instance by the Management.
(xi). According to the information and explanations given to us the managerial remuneration paid is in accordance with the provisions of Section 197 read with Schedule V to the Act.
(xii). In our opinion and according to the information and explanations given to us the Company is not a Nidhi Company. Hence the provisions of Clause (xii) of the Order are not applicable.
(xiii). According to the information and explanations given to us the transactions entered with related parties are in accordance with the provisions of Section 177 of the Act where applicable and the details of related party transactions have been disclosed in the Standalone Financials Statements as required by the applicable accounting standards.
(xiv). According to the information and explanations given to us the Company has made private placement of shares and has issued and allotted further equity shares to the promoters against the conversion of their unsecured loan in terms of the provisions of Section 62 and Section 42 of the Act during the year under audit and has complied with the requirements of those Sections.
(xv). According to the information and explanations given to us the Company has not entered into non-cash transactions with the Directors or persons connected with him and hence the provisions of Clause (xv) are not applicable to the Company.
(xvi). According to the information and explanations given to us the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act 1934.
For JCR & Co
Mem. No. 160688
''ANNEXURE B TO THE INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph 2 (f) under 'Report on Other Legal and Regulatory Requirements' section of our report to the Members of Perfect Infra engineers Limited of even date)
Report on the Internal Financial Controls Over Financial Reporting under Clause(i) Of Sub-section 3 of Section 143 of the Companies Act 2013 (the Act)
We have audited the internal financial controls over financial reporting of PERFECT INFRAENGINEERS LIMITED (the Company) as of March 31 2019 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Board of Directors of the Company is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria establishedbytheCompanyconsideringtheessentialcomponentsofinternalcontrolstated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design plementation and maintenance of adequate internal financial controls that were operating effectivelyforensuringtheorderlyandefficientconductofitsbusinessincludingadherence to
respective company's policies the safeguarding of its assets the prevention and detectionoffraudsanderrorstheaccuracyandcompletenessoftheaccountingrecords andthetimelypreparationofreliablefinancialinformationasrequiredundertheCompanies Act2013.
Our responsibility is to express an opinion on the internal financial controls over financial reporting of the Company based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the Guidance Note) issued by the Institute of Chartered Accountants of India and the StandardsonAuditingprescribedunderSection143(10)oftheCompaniesAct2013tothe extentapplicabletoanauditofinternalfinancialcontrols.ThoseStandardsandtheGuidance Note require that we comply with ethic al requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financialreportingwasestablishedandmaintainedandifsuchcontrolsoperatedeffectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an under standing of internal financial controls over financial reporting assessing
theriskthatamaterialweaknessexistsandtestingandevaluatingthedesignandoperating effectivenessofinternalcontrolbasedontheassessedrisk.Theproceduresselecteddepend on the auditor's judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ourauditopinionontheinternalfinancialcontrolssystemoverfinancialreporting of the Company.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally acceptedaccDuntingprinciples.Acompany'sinternalfinancialcontroloverfinancialreporting includes those policies and procedures that (1) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in
accordancewithgenerallyacceptedaccountingprinciplesandthatreceiptsand expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and(3)providere as on able assurance regarding prevention or timely detection of unauthorized acquisition use or disposition of the company's assets that could have a material effect on the financial statements.
Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting includingthepossibilityofcollusionorimpropermanagementoverrideofcontrolsmaterial misstatements due to error or fraud may occur and not be detected. Also projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.
According to the information and explanations given to us and based on our audit the following significant weakness has been identified as at 31st March 2019:
(a). The control mechanism in respect of design of controls needs improvement.
In our opinion except for the possible effects of the significant weakness described above on the achievement of the objectives of the control criteria the Company has maintained in all material respects adequate internal financial controls over financial reporting were operating effectively as of 31st March 2019 based on The internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India.
For JCR & Co
Mem. No. 160688