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Puravankara Ltd.

BSE: 532891 Sector: Infrastructure
NSE: PURVA ISIN Code: INE323I01011
BSE 10:36 | 16 Aug 101.30 -0.35
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OPEN 99.70
PREVIOUS CLOSE 101.65
VOLUME 2428
52-Week high 166.35
52-Week low 77.90
P/E 14.47
Mkt Cap.(Rs cr) 2,402
Buy Price 101.00
Buy Qty 163.00
Sell Price 101.30
Sell Qty 12.00
OPEN 99.70
CLOSE 101.65
VOLUME 2428
52-Week high 166.35
52-Week low 77.90
P/E 14.47
Mkt Cap.(Rs cr) 2,402
Buy Price 101.00
Buy Qty 163.00
Sell Price 101.30
Sell Qty 12.00

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 statementsof Puravankara Limited (“the Company”) which comprise the Balance sheet as atMarch 31 2021 the Statement of Profit and Loss including the Statement of OtherComprehensive Income the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and notes to the standalone Ind AS financial statements including asummary of significant accounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us and based on the consideration of reports of other auditors onseparate financial statements and on the other financial information of the partnershipentities the aforesaid standalone Ind AS financial statements give the informationrequired by the Companies Act 2013 as amended (“the Act”) in the manner sorequired and give a true and fair view in conformity with the accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2021its loss including other comprehensive income its cash flows and the changes in equityfor the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone Ind AS financial statements inaccordance with the Standards on Auditing (SAs) as specified under section 143(10) of theAct. Our responsibilities under those Standards are further described in the'Auditor's Responsibilities for the Audit of the Standalone Ind AS FinancialStatements' section of our report. We are independent of the Company in accordancewith the 'Code of Ethics' issued by the Institute of Chartered Accountants of Indiatogether with the ethical requirements that are relevant to our audit of the financialstatements under the provisions of the Act and the Rules thereunder and we have fulfilledour other ethical responsibilities in accordance with these requirements and the Code ofEthics. We believe that the audit evidence obtained by us and other auditors in terms oftheir reports to in “Other Matters” paragraph below is sufficient andappropriate to provide a basis for our audit opinion on the standalone Ind AS financialstatements.

Emphasis of Matter

We draw attention to the following notes to the accompanying standaloneInd AS financial statements:

(i) Note 37(b)(iv) in connection with the wholly-owned subsidiary beingsubject to an ongoing litigation with its customer. Pending resolution of the litigationand based on legal opinion obtained by the management no provision has been made towardsthe resulting impact of customer's counter-claims on the subsidiary in theaccompanying standalone Ind AS financial statements.

(ii) Note 37(b)(v) in connection with certain ongoing property relatedlegal proceedings in the Company. Pending resolution of the legal proceedings and based onlegal opinions obtained by the management no provision has been made towards any claimsand the underlying recoverable deposits and advances are classified as good andrecoverable in the accompanying standalone Ind AS financial statements.

(iii) Note 2.4 in connection with the management's evaluation ofCovid-19 impact on the business operations and cash flows of the Company. In view of theuncertain economic conditions the management's evaluation of the impact on thesubsequent periods is highly dependent upon conditions as they evolve.

Our opinion is not modified in respect of the above matters.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone Ind AS financial statements forthe financial year ended March 31 2021. These matters were addressed in the context ofour audit of the standalone Ind AS financial statements as a whole and in forming ouropinion thereon and we do not provide a separate opinion on these matters. For eachmatter below our description of how our audit addressed the matter is provided in thatcontext.

We have determined the matters described below to be the key auditmatters to be communicated in our report. We have fulfilled the responsibilities describedin the Auditor's responsibilities for the audit of the standalone Ind AS financialstatements section of our report including in relation to these matters. Accordingly ouraudit included the performance of procedures designed to respond to our assessment of therisks of material misstatement of the standalone Ind AS financial statements. The resultsof our audit procedures including the procedures performed to address the matters belowprovide the basis for our audit opinion on the accompanying standalone Ind AS financialstatements.

Other Information

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

Our opinion on the standalone Ind AS financial statements does notcover the other information and we do not express any form of assurance conclusionthereon.

In connection with our audit of the standalone Ind AS financialstatements our responsibility is to read the other information identified above when itbecomes available and in doing so consider whether such other information is materiallyinconsistent with the standalone Ind AS financial statements or our knowledge obtained inthe audit or otherwise appears to be materially misstated. If based on the work we willperform we conclude that there is a material misstatement of this other information weare required to report that fact.

Responsibilities of Management and Those Charged with Governance forthe Standalone Ind AS Financial Statements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Act with respect to the preparation of these standaloneInd AS financial statements that give a true and fair view of the financial positionfinancial performance including other comprehensive income cash flows and changes inequity of the Company in accordance with the accounting principles generally accepted inIndia including the Indian Accounting Standards (Ind AS) specified under section 133 ofthe Act read with the Companies (Indian Accounting Standards) Rules 2015 as amended.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and the design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the standalone Ind AS financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

Those charged with governance are also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone Ind ASFinancial Statements

Our objectives are to obtain reasonable assurance about whether thestandalone Ind AS financial statements as a whole are free from material misstatementwhether due to fraud or error and to issue an auditor's report that includes ouropinion. Reasonable assurance is a high level of assurance but is not a guarantee that anaudit conducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone Ind AS financialstatements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of thestandalone Ind AS financial statements whether due to fraud or error design and performaudit procedures responsive to those risks and obtain audit evidence that is sufficientand appropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls with reference to financialstatements in place and the operating effectiveness of such controls.

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

• Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditionsmay cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thestandalone Ind AS financial statements including the disclosures and whether thestandalone Ind AS financial statements represent the underlying transactions and events ina manner that achieves fair presentation.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalone IndAS financial statements for the financial year ended March 31 2021 and are therefore thekey audit matters. We describe these matters in our auditor's report unless law orregulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits of such communication.

Other Matter

We did not audit the financial statements and the other financialinformation as regards Company's share in losses of 4 partnership entities (2 limitedliability partnership and 2 partnership firms) amounting to H1.28 crores for the yearended March 31 2021 and included in the accompanying standalone Ind AS financialstatements. The financial statements of such partnership entities have been audited byother auditors and whose reports have been furnished to us by the management. Our opinionin so far as it relates to the affairs of such partnership entities is based solely onthe report of other 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 of the Act based on our audit we give in the “Annexure 1”a statement on the matters specified in paragraphs 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 explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit;

(b) In our opinion proper books of account as required by law havebeen 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 including theStatement of Other Comprehensive Income the Cash Flow Statement and Statement of Changesin Equity dealt with by this Report are in agreement with the books of account;

(d) In our opinion the aforesaid standalone IndAS financial statementscomply with the Accounting Standards specified under Section 133 of the Act read withCompanies (Indian Accounting Standards) Rules 2015 as amended;

(e) The matters described in Emphasis of Matter paragraph above in ouropinion may have an adverse effect on the functioning of the Company;

(f) On the basis of the written representations received from thedirectors as on March 31 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2021 from being appointed as a director in termsof Section 164 (2) of the Act;

(g) With respect to the adequacy of the internal financial controlswith reference to standalone Ind AS financial statements and the operating effectivenessof such controls refer to our separate Report in “Annexure 2” to this report;

(h) In our opinion the managerial remuneration for the year endedMarch 31 2021 has been paid / provided by the Company to its directors in accordance withthe provisions of section 197 read with Schedule V to the Act;

(i) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 as amended in our opinion and to the best of our information and according tothe explanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position 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 includingderivative contracts for which there were any material foreseeable losses;

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

For S.R. Batliboi & Associates LLP Chartered Accountants ICAI Firm Registration Number: 101049W/E300004
Place: Bengaluru Date: June 25 2021 per Adarsh Ranka Partner Membership Number: 209567 UDIN: 21209567AAAAEA5132

ANNEXURE 1 TO THE INDEPENDENT AUDITOR'S REPORT

OF EVEN DATE ON THE STANDALONE IND AS FINANCIAL STATEMENTS OFPURAVANKARA LIMTED

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

(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of property plant and equipmentand investment property.

(b) All property plant and equipment and investment property have notbeen physically verified by the management during the year but there is a regularprogramme of verification which in our opinion is reasonable having regard to the sizeof the Company and the nature of its assets. No material discrepancies were noticed onsuch verification.

(c) According to the information and explanations given by themanagement and based on the examination of the registered sale deed/transferdeed/registered joint development agreements provided to us we report that the titledeeds of immovable properties included in property plant and equipment and investmentproperty are held in the name of the Company. In respect of immovable properties taken onlease and disclosed as right-of-use assets in the standalone Ind AS financial statementsthe lease agreements are in the name of the Company.

(ii) The management has conducted physical verification of inventory atreasonable intervals during the year and no material discrepancies were noticed on suchphysical verification.

(iii) (a) The Company has granted loans to eighteen companies twolimited liability partnership firms and two partnership firm covered in the registermaintained under section 189 of the Companies Act 2013. In our opinion and according tothe information and explanations given to us the terms and conditions of the loans arenot prejudicial to the Company's interest having regard to management'srepresentation that the loans are given to such parties considering the Company'seconomic interest and long-term trade relationship with such parties.

(b) In respect of the loans granted to parties covered in the registermaintained under Section 189 of the Companies Act 2013 the loans and interest thereonare repayable as per the contractual terms. As per the contractual terms the loans andinterest thereon have not fallen due for repayment. Accordingly there has been no defaulton the part of the parties to whom the money has been lent.

(c) There are no amounts of loans granted to companies firms or otherparties listed in the register maintained under section 189 of the Companies Act 2013which are overdue for more than ninety days.

(iv) In our opinion and according to the information and explanationsgiven to us provisions of section 185 and 186 of the Companies Act 2013 in respect ofloans to directors including entities in which they are interested and in respect of loansand advances given investments made and guarantees and securities given have beencomplied with by the Company.

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

(vi) We have broadly reviewed the books of account maintained by theCompany pursuant to the rules made by the Central Government for the maintenance of costrecords under section 148(1) of the Companies Act 2013 related to the constructionactivities and are of the opinion that prima facie the specified accounts and recordshave been made and maintained. We have not however made a detailed examination of thesame.

(vii) (a) The Company is generally regular in depositing withappropriate authorities undisputed statutory dues including provident fund employeesstate insurance income-tax goods and service tax duty of custom cess and otherstatutory dues applicable to it.

(b) According to the information and explanations given to us noundisputed amounts payable in respect of provident fund employees state insuranceincome-tax goods and service tax duty of custom cess and other statutory dues wereoutstanding at the year end for a period of more than six months from the date theybecame payable.

(c) According to the records of the Company the dues outstanding ofincome-tax goods and service tax duty of custom and cess which have not been depositedon account of any dispute are as follows:

Name of the Statue Nature of dues Amount demanded H Crore Amount paid under protest H Crore Period to which amount relates Forum where the dispute is pending
The Karnataka Value Added Tax Act. Value Added Tax 1.04 0.31 2012-2016 Joint Commissioner of Commercial Taxes Department Appeals
The Karnataka Value Added Tax Act. Value Added Tax 2.33 - 2016-2017 Joint 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 2.54 - 2004-2006 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 explanationsgiven by the management the Company has not defaulted in repayment of loans or borrowingto a financial institution bank or dues to debenture holders. The Company did not haveany loans or borrowing from government.

(ix) In our opinion and according to the information and explanationsgiven by the management the Company has utilized the monies raised by way of term loans(representing loans with a repayment period beyond 36 months) for the purposes for whichthey were raised. The Company has not raised any monies by way of initial public offer/further public offer.

(x) Based upon the audit procedures performed for the purpose ofreporting the true and fair view of the financial statements and according to theinformation and explanations given by the management we report that no material fraud bythe Company or no material fraud on the Company by the officers and employees of theCompany has been noticed or reported during the year.

(xi) According to the information and explanations given by themanagement the managerial remuneration has been paid / provided in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act 2013.

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

(xiii) According to the information and explanations given by themanagement transactions with the related parties are in compliance with section 177 and188 of Companies Act 2013 where applicable and the details have been disclosed in thenotes to the financial statements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us and onan overall examination of the balance sheet the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year under review and hence not commented upon.

(xv) According to the information and explanations given by themanagement the Company has not entered into any noncash transactions with directors orpersons connected with him as referred to in Section 192 of the Act.

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

For S.R. Batliboi & Associates LLP Chartered Accountants ICAI Firm Registration Number: 101049W/E300004
Place: Bengaluru Date: June 25 2021 per Adarsh Ranka Partner Membership Number: 209567 UDIN: 21209567AAAAEA5132

ANNEXURE 2 TO THE INDEPENDENT AUDITOR'S REPORT

OF EVEN DATE ON THE STANDALONE IND AS FINANCIAL STATEMENTS OFPURAVANKARA LIMTED

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 (“the Act")

We have audited the internal financial controls with reference tostandalone financial statements of Puravankara Limited (“the Company”) as ofMarch 31 2021 in conjunction with our audit of the standalone financial statements of theCompany for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's Management is responsible for establishing andmaintaining internal financial controls 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(“ICAI”). These responsibilities include the design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the orderly and efficient conduct of its business including adherence to theCompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company'sinternal financial controls with reference to these standalone financial statements basedon our audit. We conducted our audit in accordance with the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting (the “Guidance Note”) andthe Standards on Auditing as specified under section 143(10) of the Act to the extentapplicable to an audit of internal financial controls both issued by ICAI. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls with reference to these standalone financial statements was establishedand maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls with reference to these standalone Ind ASfinancial statements and their operating effectiveness. Our audit of internal financialcontrols with reference to standalone financial statements included obtaining anunderstanding of internal financial controls with reference to these standalone Ind ASfinancial statements assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed 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 andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls with reference to these standalone financial statements.

Meaning of Internal Financial Controls With Reference to theseStandalone Financial Statements

A company's internal financial controls with reference tostandalone 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 controls with reference tostandalone Ind AS financial statements includes those policies and procedures 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 asnecessary to permit preparation of standalone Ind AS financial statements in accordancewith generally accepted accounting principles and that receipts and expenditures of thecompany are being made only in accordance with authorisations of management and directorsof the company; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company's assetsthat could have a material effect on the standalone Ind AS financial statements.

Inherent Limitations of Internal Financial Controls With Reference tothese Standalone Financial Statements

Because of the inherent limitations of internal financial controls withreference to standalone Ind AS financial statements including the possibility ofcollusion or improper management override of controls material misstatements due to erroror fraud may occur and not be detected. Also projections of any evaluation of theinternal financial controls with reference to standalone Ind AS financial statements tofuture periods are subject to the risk that the internal financial control over financialreporting with reference to these standalone Ind AS financial statements may becomeinadequate because of changes in conditions or that the degree of compliance with thepolicies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects adequateinternal financial controls with reference to standalone Ind AS financial statements andsuch internal financial controls with reference to standalone Ind AS financial statementswere operating effectively as at March 31 2021 based on the internal control overfinancial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note issued by ICAI.

For S.R. Batliboi & Associates LLP Chartered Accountants ICAI Firm Registration Number: 101049W/E300004
Place: Bengaluru Date: June 25 2021 per Adarsh Ranka Partner Membership Number: 209567 UDIN: 21209567AAAAEA5132

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