INDEPENDENT AUDITORS REPORT To the Members of PERFECT INFRAENGINEERS LIMITED
Report on the Standalone Financial Statements
1. We have audited the accompanying financial statements of PERFECT INFRAENGINEERSLimited (the Company) which comprise the Balance Sheet as at 31st March 2018the Statement of Profit and Loss account and Cash Flow Statement for the year then endedand a Summary of significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
2. The Companys Management and the Board of Directors are responsible for thematters stated in Section 134(5) of the Companies Act 2013 ("the Act") withrespect to the preparation of these financial statements that give a true and fair view ofthe financial position financial performance and cash flows of the Company in accordancewith the accounting principles generally accepted in India including the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules2014. This responsibility also includes maintenance of adequateaccounting records in accordance with the provision of the Act for safeguarding the assetsof the Company and for preventing and detecting frauds and other irregularities; selectionand application of appropriate accounting policies; making Judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Financial Statements that give a true and fair view and are free from materialsmisstatement whether due to fraud or error.
3. Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provision 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 there under. We conducted our audit inaccordance with the Standards on Auditing specified under Section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amountsand the disclosures in the financial statements. The procedures selected depend on theauditors judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentthe auditor considers internal financial control relevant to the Companyspreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by the Companys Management and the Directors as wellas evaluating the overall presentation of the financial statements.
5. 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.
6. 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 31st March 2018 its Profit and its Cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
7. As required by the Companies (Auditors Report) Order 2016 (the Order) issuedby the Central Government in terms of Section 143 (11) of the Act we enclose in theAnnexure A a statement on the matters specified in paragraph 3 & 4of the said order.
8. As required by Section 143 (3) of the Act we further 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 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 and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account.
d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.
e) We have received the written representations received from the directors as on 31stMarch 2018 and taken on record by the Board of Directors that the Directors are notdisqualified as on 31st March 2018 from being appointed as a directors in terms of section164(2) of the Act.
f) A separate Report on the Internal Financial Controls under Clause (i) of Sub-section3 of Section 143 of the companies Act 2013 ("the Act")- is enclosed as AnnexureB to this report.
g) With respect to the other matters to be included in the Auditors 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 does have the pending litigations which would impact its financialposition and it has been disclosed in the Note No of 30 Standalone financial statements.
ii. The Company did not have any long-term contracts including derivative contractsoutstanding as at 31st March 2018 for which there were any material foreseeable losses. i.There were no amounts which were required to be transferred to the Investor Education andProtection Fund by the Company.
For M/s JCR & Co.
CA. Mitesh Chheda
Annexure A referred to in paragraph 7 of our Report of even date to the Members ofPERFECT INFRAENGINEERS Limited on the Standalone financial statements of the Company forthe year ended 31st March 2018.
On the basis of such checks as we considered appropriate and/or according to theinformation and explanations given to us during the course of our audit we report that:
i. a. The company has maintained proper records showing full particulars includingquantitative details and situation of its fixed assets.
b. The fixed assets have been physically verified by the management at reasonableintervals and no material discrepancies were noticed on such verification.
c. According to the information and explanations given to us and the records examinedby us and based on the examination of the title deeds comprising the immovable propertiesare held in the name of the Company.
ii. As explained to us the Inventory has been physically verified by the management atreasonable intervals and no material discrepancies were noticed on such physicalverification. The discrepancies noticed on verification were not material and the samehave been properly dealt with.
iii. The Company has not granted/taken any loans secured or unsecured to/fromcompanies firms limited liability partnerships or other parties listed in the registermaintained under Section 189 of the Companies Act 2013. Hence the provisions of clause 3(iii) of the order is not applicable.
iv. According to the records of the company examined by us and as per the informationand explanations given to us the company has not granted any loans covered under section185 and 186; investment made by the company is in compliance with the provisions ofSection 186.
v. According to the information and explanations given to us the company has notaccepted any deposits from the public during the year covered under sections 73 to 76 ofthe Companies Act 2013. vi. As per information & explanation given by the managementmaintenance of cost records has not been prescribed by the Central Government undersub-section (1) of section 148 of the Companies Act 2013.
vii. a. According to the information and explanations given to us and based on therecords of the company examined by us except for Rs.67.53 Lakhs due towards TDS/ ESIC PTand Service Tax (Details provided below) the company is regular in depositing theundisputed statutory dues including Provident Fund Employees State Insurance Income-taxService Tax Custom Duty Excise Duty Value added tax cess and any other materialstatutory dues to the extent applicable with the appropriate authorities in India.
Details of Statutory Dues outstanding as on 31.03.2018:
|Particulars ||Amount ||Paid date |
| ||(Rs.) || |
|TDS ||6272176 ||Not paid |
|ESIC Payable ||9230 ||23.07.18 |
|Service Tax including KKC and SBC ||380651 ||11.06.18 |
|Professional Tax ||91325 ||Not paid |
|Total ||6753382 || |
b. According to the information and explanations given to us and based on the recordsexamined by us there are no dues in respect of income tax service tax customs duty andexcise duty which have not been deposited on account of any disputes.
c. Details of dues of Central Sales Tax and Value Added Tax which have not beendeposited as on 31st March 2018 on account of disputes are given below:
|Name of Statute ||Nature of Dues ||Period to which the amount relates ||Forum where dispute is pending ||Amount Involved (Rs. in Lakhs) |
|Maharashtra Vat Act ||VAT/CST ||2010-11 (order recd in March2018) ||Appeal filed before Tribunal ||90.22 |
|Maharashtra Vat Act ||VAT/CST ||2013-14 (order recd in July2018) ||Appeal filed before Tribunal ||114.05 |
viii. The company has not availed any loans or borrowings from government or debenturesholders issued during the year. However on the basis of our examination of the records ofthe Company few delay in repayment of borrowings repayable on demand have arisen in caseof Tata Capital services ltd for the month of Dec-17 Jan-18 and Feb-18. The amount ofRs.374355 (Principal-363850 + Interest 10505) However please note the above accounthas been settled & NOC has been received in August 2018.
ix. Based on our audit procedures and according to the information given by themanagement the company has not raised any money by way of initial public offer or furtherpublic offer (including debt instruments) or taken any term loan during the year. Hencethe provision of clause 3 (ix) of the Order is not applicable.
x. During the course of our examination of the books and the records of the Companycarried in accordance with the Auditing Standards generally accepted in India we haveneither come across any instance of fraud by the Company or on the Company by its officersor employees noticed or reported during the year nor have we been informed of any suchinstance by the Management.
xi. According to the information and explanations given to us the managerialremuneration paid/provided are in accordance with the provisions of section 197 read withSchedule V to the Companies Act 2013.
xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Hence clause 3 (xii) of the order is not applicable.
xiii. According to the information and explanations given to us the transactionsentered with related parties are in accordance with the provisions of section 177 and 188of the Companies Act 2013 where applicable and the details of related party transactionshave been disclosed in the standalone financial statements as required by the applicableaccounting standards.
xiv. The company has made any private placement of shares and has issued and allottedfurther equity shares to new members in terms of provisions of Section 62 & section42 of the Act during the year under Audit and has complied with the requirements of thatSection.
xv. According to the information and explanations given to us the company has notentered into non-cash transactions with directors or persons connected with him and henceparagraph 3 (xv) of the Order is not applicable to the Company.
xvi. According to the information and explanations given to us the company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.
For M/s JCR & Co.
CA Mitesh Chheda
M.No. : 160688
ANNEXURE B referred to in paragraph 8(f) of our Report of even date to theMembers of
PERFECT INFRAENGINEERS Limited on the Standalone financial statements of the Companyfor the year ended 31st March 2018
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of PERFECTINFRAENGINEERS Limited as of 31st March 2018 in conjunction with our audit of thestandalone financial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internalfinancial controls.
These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to companys policies thesafeguarding 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.
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 issued by ICAI and deemed to be prescribed under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controlsboth applicable to an audit of Internal Financial Controls and both issued by theInstitute of Chartered Accountants of India. 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 were established and maintained and if such controls operated effectively in allmaterial respects. Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditors judgment including the assessment of therisks 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 toprovide a basis for our audit opinion on the Companys internal financial controlssystem over 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 that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial 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.
According to the information and explanations given to us and based on our audit thefollowing significant weakness has been identified as at 31st March 2018:
a) The control mechanism in respect of recording of transactions needs improvement.
In our opinion except for the possible effects of the significant weakness describedabove on the achievement of the objectives of the control criteria the Company hasmaintained in all material respects adequate internal financial controls over financialreporting and such internal financial controls over financial reporting were operatingeffectively as of 31st March 2018 based on "the internal control over 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 issued by the Institute of Chartered Accountants of India".
We have considered the weakness identified and reported above in determining thenature timing and extent of audit tests applied in our audit of the 31st March 2018standalone financial statement of the Company and the weakness will not affect ouropinion on the standalone financial statements of the Company.
For M/s JCR & Co.
CA Mitesh Chheda