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Puravankara Ltd.

BSE: 532891 Sector: Infrastructure
NSE: PURVA ISIN Code: INE323I01011
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OPEN 69.80
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VOLUME 5548
52-Week high 96.00
52-Week low 31.65
P/E
Mkt Cap.(Rs cr) 1,610
Buy Price 67.30
Buy Qty 35.00
Sell Price 67.60
Sell Qty 10.00
OPEN 69.80
CLOSE 66.50
VOLUME 5548
52-Week high 96.00
52-Week low 31.65
P/E
Mkt Cap.(Rs cr) 1,610
Buy Price 67.30
Buy Qty 35.00
Sell Price 67.60
Sell Qty 10.00

Puravankara Ltd. (PURVA) - Auditors Report

Company auditors report

To the Members of Puravankara Limited

Report on the Audit of the Standalone Ind AS Financial Statements

Opinion

We have audited the accompanying standalone Ind AS financial statements of PuravankaraLimited ("the Company") which comprise the Balance sheet as at March 31 2020the Statement of Profit and Loss including the statement of Other Comprehensive Incomethe Cash Flow Statement and the Statement of Changes in Equity for the year then endedand notes to the financial statements including a summary of significant accountingpolicies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us and based on the consideration of reports of other auditors on separatefinancial statements and on the other financial information of the partnership entitiesthe aforesaid standalone Ind AS financial statements give the information required by theCompanies Act 2013 as amended ("the Act") in the manner so required and give atrue and fair view in conformity with the accounting principles generally accepted inIndia of the state of affairs of the Company as at March 31 2020 its profit includingother comprehensive income its cash flows and the changes in equity for the year ended onthat date.

Basis for Opinion

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing (SAs) as specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the 'Auditor'sResponsibilities for the Audit of the Standalone Ind AS Financial Statements' section ofour 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 ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence obtained by us and other auditors in terms of their reportsreferred to in "Other Matter" paragraph below is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

Emphasis of Matter

(i) We draw attention to Note 37 (b)(iv) to the accompanying standalone Ind ASfinancial statements for the year ended March 31 2020 in connection with thewholly-owned subsidiary being subject to an ongoing litigation. Pending resolution of thelitigation no provision has been made towards the resulting impact of customer'scounter-claims on the subsidiary in the accompanying standalone Ind AS financialstatements. Our opinion is not modified in respect of this matter.

(ii) We draw attention to Note 37 (b)(v) to the accompanying standalone Ind ASfinancial statements in connection with certain ongoing litigations in the Company.Pending resolution of the litigations based on legal opinions no provision has been madetowards any claims and the underlying recoverable deposits and advances are classified asgood and recoverable in the accompanying standalone Ind AS financial statements. Ouropinion is not modified in respect of this matter.

(iii) We draw attention to Note 2.4 to the accompanying standalone Ind AS financialstatements for the year ended March 31 2020 which describes the management's evaluationof Covid-19 impact on the future business operations and future cash flows of the Company.In view of the uncertain economic conditions the management's evaluation of the impact onthe subsequent periods is highly dependent upon conditions as they evolve. Our opinion isnot modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone Ind AS financial statements for the financialyear ended March 31 2020. These matters were addressed in the context of our audit of thestandalone Ind AS financial statements as a whole and in forming our opinion thereon andwe do not provide a separate opinion on these matters. For each matter below ourdescription of how our audit addressed the matter is provided in that context.

We have determined the matters described below to be the key audit matters to becommunicated in our report. We have fulfilled the responsibilities described in theAuditor's responsibilities for the audit of the standalone Ind AS financial statementssection of our report including in relation to these matters. Accordingly our auditincluded the performance of procedures designed to respond to our assessment of the risksof material misstatement of the standalone Ind AS financial statements. The results of ouraudit procedures including the procedures performed to address the matters below providethe basis for our audit opinion on the accompanying standalone Ind AS financialstatements.

Key audit matters How our audit addressed the key audit matter
Recognition of Revenue from Contract with Customers (as described in Note 38 of the standalone Ind AS financial statements)
The Company applies Ind AS 115 for recognition of revenue from real estate projects. The revenue from real estate projects is recognised at a point in time upon the Company satisfying its performance obligation and the customer obtaining control of the underlying asset which involves significant estimates and judgement. Our audit procedures included among others the following:
- We have read the accounting policy for revenue recognition and assessed compliance of the policy in terms of principles enunciated under Ind AS 115.
- We assessed the management evaluation of determining revenue recognition from sale of real estate inventory property at a point in time in accordance with the requirements under Ind AS 115.
For revenue contract forming part of Joint Development Arrangements that are not jointly controlled operations ('JDA') the revenue from the development and transfer of constructed area/revenue share with a corresponding land/ development rights received by the Company is measured at the fair value of the estimated construction service rendered by the Company to the land owner under JDA. Such revenue is recognised over a period of time in accordance with the requirements of Ind AS 115.
- We obtained and understood the revenue recognition process and performed test of controls over revenue recognition including determination of point of transfer of control completion of performance obligation and fair value of estimated construction service under JDA on a sample basis.
- We performed test of details on a sample basis and tested the underlying customer/JDA contracts and sale deed/ handover documents evidencing the transfer of control of the asset to the customer based on which the revenue is recognized at a point of time.
For contracts involving sale of real estate unit the Company receives the consideration in accordance with the terms of the contract in proportion of the percentage of completion of such real estate project and represents payments made by customers to secure performance obligation of the Company under the contract enforceable by customers. The assessment of such consideration received from customers involves significant judgment in determining if the contracts with customers involves any financing element.
- We obtained the joint development agreements entered into by the Company and compared the ratio of constructed area/ revenue sharing arrangement between the Company and the landowner as mentioned in the agreement to the computation statement prepared by the management on a sample basis.
Application of Ind AS 115 involves significant judgment in determining when 'control' of the property underlying the performance obligation is transferred to the customer. Further for revenue contract forming part of JDA significant estimate is made by the management in determining the fair value of the underlying revenue.
- We obtained and tested the computation of the fair value of the construction service under JDA on sample basis.
- We tested the computation for recognition of revenue over a period of time for revenue contracts forming part of JDA and management's assessment of stage of completion of projects and project cost estimates on a test check basis.
As the revenue recognition involves significant estimates and judgement we regard this as a key audit matter.
- We assessed the disclosures made by management in compliance with the requirements of Ind AS 115.
Recording of related party transactions and disclosures (as described in note 39 of the Standalone Ind AS financial statements)
The Company has undertaken transactions with its related parties in the ordinary course of business at arm's length. These include making new or additional investments in its subsidiaries associates and joint ventures and lending and borrowing of loans; and other transactions to or from the related parties. Our audit procedures included among others the following:
- Obtained and read the Company's policies processes and procedures in respect of identifying related parties obtaining approval recording and disclosure of related party transactions.
We identified the accuracy and completeness of the said related party transactions and its disclosure as set out in respective notes to the Standalone Ind AS financial statements as a key audit matter due to the significance of transactions with related parties and regulatory compliance thereon. - Read minutes of shareholder meetings board meetings and minutes of meetings ofthose charged with governance in connection with Company's assessment of related party transactions being in the ordinary course of business at arm's length.
- Tested on a sample basis related party transactions with the underlying contracts confirmation letters and other supporting documents.
- Agreed the related party information disclosed in the Standalone Ind AS financial statements with the underlying supporting documents on a sample basis.
Carrying value of inventory and land advances/deposits (as described in notes 7(a) 10(a) and 13 of the Standalone Ind AS financial statements)
As at March 31 2020 the carrying value of the inventory of real estate projects is Rs 4060.01 crores and land advances/deposits of Rs 223.75 crores. Our procedures in assessing the carrying value of the inventories/land advances/deposits included among others the following:
The inventories are carried at the lower of cost and Net Realisable Value (NRV). The determination of the NRV involves estimates based on prevailing market conditions and taking into account the estimated future selling price cost to complete projects and selling costs. - We read and evaluated the accounting policies with respect to inventories/land advances/deposits.
- We assessed the Company's methodology applied in assessing the carrying value under the relevant accounting standards based on current economic and market conditions including effects of COVID-19 pandemic applied in assessing the carrying value launch of the project development plan and future sales.
On account of Covid-19 outbreak and country-wide lockdown thereon the Company conducted its annual inventory count at a date subsequent to year- end and performed the rollback workings.
- We obtained and tested the computation involved in assessment of carrying value and the net realisable value/ net recoverable value including the effects of COVID 19 on test check basis.
Deposits paid underjoint development arrangements in the nature of non-refundable amounts are recognised as land advance under other assets and on the launch of the project the same is transferred as land stock under inventories. Further advances paid by the Company to the seller/ intermediary towards outright purchase of land is recognised as land advance under other assets during the course of transferring the legal title to the Company whereupon it is transferred to land stock under inventories.
- We compared the realisable/recoverable amount of the asset to the carrying value in books on test check basis.
- We made inquiries with management to understand key assumptions used in determination of the net realisable value/ net recoverable value including effects of COVID 19 on test check basis.
The aforesaid deposits and advances are carried at the lower of the amount paid/payable and net recoverable value which is based on the management's assessment including the expected date of commencement and completion of the project and the estimate of sale prices and construction costs of the project. - On account of Covid-19 outbreak and countrywide lockdown thereon we observed the physical verification of inventory at a date subsequent to year-end and tested the rollback procedures performed by the Company on a test check basis.
We identified the assessment of the carrying value of inventory and land advances/deposits as a key audit matter due to the significance of the balance to the Standalone Ind AS financial statements as a whole and the involvement of estimates and judgement in the assessment
Compliance with repayment terms of borrowings (as described in note 20 of the Standalone Ind AS financial statements)
The Company has significant borrowings as it is the key source of funds taken to finance its various real estate development projects as well as for general corporate purpose. Our procedures in relation to compliance with repayment terms of borrowings include among others the following:
- Obtained an understanding of the process and testing the internal controls over timely repayment of borrowings.
We consider compliance with repayment terms of borrowings as a key audit matter as this is a key consideration for appropriate classification of loan balances and relevant disclosures thereon in the Standalone Ind AS financial statements. Further compliance with repayment terms is part of management's assessment of evaluating its gearing and liquidity profile.
- We tested the repayments of borrowings for a sample of transactions by reading the underlying contracts for repayments schedules comparing the actual cash flows with the repayment schedules and tracing the amounts paid as per books of account to the bank statements of the Company.
- Assessed the maturity profile of the borrowings to evaluate the classification and disclosure of borrowings on test check basis.
- Compared the balances confirmed by the lenders with the balances as per the books of accounts.
Carrying value of Investments and loans made in subsidiaries associate and joint venture entities (as described in note 06 and 07 of the Standalone Ind AS financial statements)
As at March 31 2020 the carrying values of Company's investment in subsidiary joint venture and associate entities amounted to Rs 63.22 crores. Further the Company has granted loans and advances to its subsidiaries joint ventures and associates and the outstanding amount as at March 31 2020 is Rs 524.49 crores. Management reviews on a periodical basis whether there are any indicators of impairment of such investments and loans and advances. Our procedures in assessing the impairment of the investment and loans and advances included among others the following:
- We read and evaluated the accounting policies with respect to investment and loans and advance.
- We assessed the Company's methodology applied in assessing the carrying value under the relevant accounting standards.
- We assessed the Company's valuation methodology and assumptions based on current economic and market conditions including effects of COVID-19 pandemic applied in determining the recoverable/realisable amount.
For cases where impairment indicators exist management estimates the recoverable/realisable amounts of the investments being higher of fair value less costs of disposal and value in use. Significant judgements are required to determine the key assumptions used in determination of fair value / value in use.
- We compared the recoverable/realisable amount of the investment and loans and advance to the carrying value in books.
The loans and advances are carried at the lower of the carrying value and net recoverable value which is based on the management's assessment of recoverability of loans and advances. - We obtained and considered management evaluation based on current economic and market conditions including effects of COVID-19 pandemic applied in determining the recoverability of loans and advances granted to its subsidiaries and associate entities.
In view of the COVID -19 pandemic the management has reassessed its future business plans and key assumptions as at March 31 2020 while assessing the adequacy of carrying value of the investment loans and advances made by the Company in Subsidiaries associates and joint venture entities.
- We assessed the financial condition of entities to whom loans and advances were granted by obtaining the most recent audited financial statements of such entities.
As the impairment assessment involves significant assumptions and judgement we regard this as a key audit matter. - We performed inquiries with management on the project status and future business plan of entities to whom loans and advances were granted to evaluate their recoverability/realisability.
- We assessed the disclosures made in the Standalone Ind AS financial statements regarding investments and loans and advances.

Other Information

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual report but does not includethe standalone Ind AS financial statements and our auditor's report thereon. The annualreport is expected to be made available to us after the date of this auditor's report.

Our opinion on the standalone Ind AS financial statements does not cover the otherinformation and we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone Ind AS financial statements ourresponsibility is to read the other information identified above when it becomes availableand in doing so consider whether such other information is materially inconsistent withthe standalone Ind AS financial statements or our knowledge obtained in the audit orotherwise appears to be materially misstated. If based on the work we will perform weconclude that there is a material misstatement of this other information we are requiredto report that fact.

Responsibilities of Management and Those Charged with Governance for the Standalone IndAS Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone Ind AS financialstatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income cash flows and changes in equity of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards (Ind AS) specified under section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and the designimplementation 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 standalone Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone Ind AS financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

Those charged with governance are also responsible for overseeing the Company'sfinancial reporting process.

Auditor's Responsibilities for the Audit of the Standalone Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone Ind ASfinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone Ind AS financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the standalone Ind ASfinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery intentional omissions misrepresentations or the override of internalcontrol.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the standalone IndAS financial statements including the disclosures and whether the standalone Ind ASfinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone Ind AS financialstatements for the financial year ended March 31 2020 and are therefore the key auditmatters. We describe these matters in our auditor's report unless law or regulationprecludes public disclosure about the matter or when in extremely rare circumstances wedetermine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interestbenefits of such communication.

Other Matter

We did not audit the financial statements and the other financial information asregards Company's share in losses of 3 partnership entities (2 limited liabilitypartnership and 1 partnership firm) amounting to H0.80 crores for the year ended March 312020 and included in the accompanying standalone Ind AS financial statements. Thefinancial statements of such partnership entities have been audited by other auditors andwhose reports have been furnished to us by the management. Our opinion in so far as itrelates to the affairs of such partnership entities is based solely on the report ofother auditors. Our opinion is not modified in respect of this matter.

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 ofthe Act we give in the "Annexure 1" a statement on the matters specified inparagraphs 3 and 4 of the Order.

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 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 the Statement ofOther Comprehensive Income the Cash Flow Statement and Statement of Changes in Equitydealt with by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Accounting Standards specified under Section 133 of the Act read with Companies(Indian Accounting Standards) Rules 2015 as amended;

(e) The matter described in Emphasis of Matter paragraph above in our opinion mayhave an adverse effect on the functioning of the Company;

(f) On the basis of the written representations received from the directors as on March31 2020 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2020 from being appointed as a director in terms of Section 164 (2) ofthe Act;

(g) With respect to the adequacy of the internal financial controls over financialreporting of the Company with reference to these standalone Ind AS financial statementsand the operating effectiveness of such controls refer to our separate Report in"Annexure 2" to this report;

(h) In our opinion the managerial remuneration for the year ended March 31 2020 hasbeen paid / provided by the Company to its directors in accordance with the provisions ofsection 197 read with Schedule V to the Act;

(i) 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements - Refer Note 37 (b) to thestandalone Ind AS financial statements;

ii. The Company did not have any long term contracts including derivative contracts forwhich there were any provision for 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 S.R. Batliboi & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004

 

per Adarsh Ranka
Partner
Place: Bengaluru Membership Number: 209567
Date: June 26 2020 UDIN: 20209567AAAADJ2078

ANNEXURE 1 TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE IND ASFINANCIAL STATEMENTS OF PURAVANKARA LIMTED

Report on the matters specified in paragraphs 3 and 4 of the Companies (Auditor'sReport) Order 2016 ("the Order")

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment and investmentproperty.

(b) All property plant and equipment and investment property have not been physicallyverified by the management during the year but there is a regular programme ofverificationwhich in our opinion is reasonable having regard to the size of the Company and thenature of its assets. No material discrepancies were noticed on such verification.

(c) According to the information and explanations given by the management and based onthe examination of the registered sale deed/transfer deed/registered joint developmentagreements provided to us we report that the title deeds of immovable propertiesincluded in property plant and equipment and investment property are held in the name ofthe Company. In respect of immovable properties taken on lease and disclosed asright-of-use assets in the standalone Ind AS financial statements the lease agreementsare in the name of the Company.

(ii) The management has conducted physical verification of inventory at reasonableintervals during the year and no material discrepancies were noticed on such physicalverification.

(iii) (a) The Company has granted loans to seventeen companies two limited liabilitypartnership firms and one partnership firm covered in the register maintained undersection 189 of the Companies Act 2013. In our opinion and according to the informationand explanations given to us the terms and conditions of the loans are not prejudicial tothe Company's interest having regard to management's representation that the loans aregiven to such parties considering the Company's economic interest and long-term traderelationship with such parties.

(b) In respect of the loans granted to parties covered in the register maintained underSection 189 of the Companies Act 2013 the loans and interest thereon are repayable asper the contractual terms. As per the contractual terms the loans and interest thereonhave not fallen due for repayment. Accordingly there has been no default on the part ofthe parties to whom the money has been lent.

(c) There are no amounts of loans granted to companies firms or other parties listedin the register maintained under section 189 of the Companies Act 2013 which are overduefor more than ninety days.

(iv) In our opinion and according to the information and explanations given to usprovisions of section 185 and 186 of the Companies Act 2013 in respect of loans todirectors including entities in which they are interested and in respect of loans andadvances given investments made and guarantees and securities given have been compliedwith by the Company.

(v) The Company has not accepted any deposits within the meaning of Sections 73 to 76of the Companies Act 2013 and the Companies (Acceptance of Deposits) Rules 2014 (asamended). Accordingly the provisions of clause 3(v) of the Order are not applicable.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules made by the Central Government for the maintenance of cost records undersection 148(1) of the Companies Act 2013 related to the construction activities and areof the opinion that prima facie the specified accounts and records have been made andmaintained. We have not however made a detailed examination of the same.

(vii) (a) The Company is generally regular in depositing with appropriate authoritiesundisputed statutory dues including provident fund employees' state insuranceincome-tax goods and service tax duty of custom cess and other statutory duesapplicable to it though there has been a slight delay in a few cases in deposit of taxdeducted at source goods and service tax and professional tax.

(b) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees' state insurance income-tax goods andservice tax duty of custom cess and other statutory dues were outstanding at the yearend for a period of more than six months from the date they became payable.

(c) According to the records of the Company the dues outstanding of income-tax goodsand service tax duty of custom and cess which have not been deposited on account of anydispute are as follows:

Name of the Statue Nature of dues Amount demanded HCrore Amount paid under protest HCrore Period to which amount relates Forum where the dispute is pending
The Karnataka Value Added Tax Act. Value Added Tax 0.48 0.15 2013-2015 Joint Commissioner of Commercial Taxes Department Appeals
Karnataka Value Added Tax Act. Value Added Tax 0.18 0.05 2012-2013 Joint Commissioner of Commercial Taxes Department Appeals
The Kerala Value Added Tax Act Value Added Tax 10.69 2012-2013 Commissioner of Commercial Taxes Department Appeals
Chapter V of the Finance Act 1994 Service Tax 8.61 2007-2008 Customs Excise & Service Tax Appellate Tribunal Bangalore
Chapter V of the Finance Act 1994 Service Tax 29.57 0.46 2007-2017 Customs Excise & Service Tax Appellate Tribunal Bangalore
Income-Tax Act 1961 Income tax 10.26 2004-2006 2009-2011 Commissioner of Income Tax (Appeals)
Income-Tax Act 1961 Income tax 27.04 2011-2014 Assistant Commissioner of Income Tax
Income-Tax Act 1961 Income tax 15.16 - 2015-2016 Commissioner of Income Tax (Appeals)

(viii) In our opinion and according to the information and explanations given by themanagement the Company has not defaulted in repayment of loans or borrowing to afinancial institution bank or dues to debenture holders. The Company did not have anyloans or borrowing from government.

(ix) In our opinion and according to the information and explanations given by themanagement the Company has utilized the monies raised by way of term loans (representingloans with a repayment period beyond 36 months) for the purposes for which they wereraised. The Company has not raised any monies by way of initial public offer/ furtherpublic offer.

(x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to the information and explanationsgiven by the management we report that no fraud by the Company or no fraud on the Companyby the officers and employees of the Company has been noticed or reported during the year.

(xi) According to the information and explanations given by the management themanagerial remuneration has been paid / provided in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the CompaniesAct 2013.

(xii) In our opinion the Company is not a nidhi company. Therefore the provisions ofclause 3(xii) of the order are not applicable to the Company and hence not commented upon.

(xiii) According to the information and explanations given by the managementtransactions with the related parties are in compliance with section 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the notes tothe financial statements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us and on an overallexamination of the balance sheet the Company has not made any preferential allotment orprivate placement of shares or fully or partly convertible debentures during the yearunder review and hence not commented upon.

(xv) According to the information and explanations given by the management the Companyhas not entered into any non-cash transactions with directors or persons connected withhim as referred to in Section 192 of the Act.

(xvi)According to the information and explanations given to us the provisions ofsection 45-IA of the Reserve Bank of India Act 1934 are not applicable to the Company.

For S.R. Batliboi & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004

 

per Adarsh Ranka
Partner
Place: Bengaluru Membership Number: 209567
Date: June 26 2020 UDIN: 20209567AAAADJ2078

ANNEXURE 2 TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE IND ASFINANCIAL STATEMENTS OF PURAVANKARA LIMTED

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 PuravankaraLimited ("the Company") as of March 31 2020 in conjunction with our audit ofthe standalone financial statements of the Company for 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 ofInternal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the 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.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting with reference to these standalone financial statementsbased on our audit. We conducted our audit in accordance with the Guidance Note on Auditof Internal Financial Controls Over Financial Reporting (the "Guidance Note")and the Standards on Auditing as specified under section 143(10) of the Companies Act2013 to the extent applicable to an audit of internal financial controls and both issuedby the Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting with reference to these standalone financial statements was 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 over financial reporting with reference to thesestandalone Ind AS financial statements and their operating effectiveness. Our audit ofinternal financial controls over financial reporting included obtaining an understandingof internal financial controls over financial reporting with reference to these standaloneInd AS financial statements assessing the risk that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal control based onthe assessed risk. The procedures selected depend on the auditor's judgement includingthe assessment of the risks of material misstatement of the financial statements whetherdue 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 internal financial controls over financialreporting with reference to these standalone financial statements.

Meaning of Internal Financial Controls Over Financial Reporting With Reference to theseFinancial Statements

A company's internal financial control over financial reporting with reference to thesestandalone Ind AS financial statements is a process designed to provide reasonableassurance regarding the reliability of financial reporting and the preparation offinancial statements for external purposes in accordance with generally acceptedaccounting principles. A company's internal financial control over financial reportingwith reference to these standalone Ind AS financial statements includes those policies andprocedures that (1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany; (2) provide reasonable assurance that transactions are recorded as necessary topermit preparation of standalone Ind AS financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and (3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the standalone Ind AS financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting WithReference to these Standalone Financial Statements

Because of the inherent limitations of internal financial controls over financialreporting with reference to these standalone Ind AS financial statements including thepossibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the internal financial controls over financial reporting with referenceto these standalone Ind AS financial statements to future periods are subject to the riskthat the internal financial control over financial reporting with reference to thesestandalone Ind AS financial statements may become inadequate because of changes inconditions or that the degree of compliance with the policies or procedures maydeteriorate.

Opinion

In our opinion the Company has in all material respects adequate internal financialcontrols over financial reporting with reference to these standalone Ind AS financialstatements and such internal financial controls over financial reporting with reference tothese standalone Ind AS financial statements were operating effectively as at March 312020 based on the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

For S.R. Batliboi & Associates LLP
Chartered Accountants
ICAI Firm Registration Number: 101049W/E300004

 

per Adarsh Ranka
Partner
Place: Bengaluru Membership Number: 209567
Date: June 26 2020 UDIN: 20209567AAAADJ2078

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