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Purohit Construction Ltd.

BSE: 538993 Sector: Infrastructure
NSE: N.A. ISIN Code: INE147J01012
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NSE 05:30 | 01 Jan Purohit Construction Ltd
OPEN 5.82
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VOLUME 200
52-Week high 7.92
52-Week low 4.67
P/E
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 5.82
CLOSE 5.82
VOLUME 200
52-Week high 7.92
52-Week low 4.67
P/E
Mkt Cap.(Rs cr) 3
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Purohit Construction Ltd. (PUROHITCONST) - Auditors Report

Company auditors report

To

The Members

M/s Purohit Construction Limited

Report on the Financial Statements

Opinion

We have audited the accompanying financial statements of M/s Purohit ConstructionLimited Ahmedabad which comprise the Balance Sheet as at March 31 2019 theStatement of Profit and Loss and Cash Flow Statement for the year then ended on that dateand a summary of significant accounting policies along with other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 ("the Act") in the manner so required and give a true andfair view in conformity with the Accounting Principles generally accepted in India of thestate of affairs of the Company as at March 31 2019 the profit and loss and its cashflows for the year ended on that date.

Basis for opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing specified under section 143(10) of the Act (SAs). Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the independence requirements that are relevant to our audit ofthe financial statements under the provisions of the Act and the Rules made there underand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the ICAI's Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thefinancial statements.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexure to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the financial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Management's Responsibility for the 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 financial statements that givea true and fair view of the financial position financial performance and cash flows ofthe Company in accordance with the accounting principles generally accepted in Indiaincluding the Companies (Accounting Standards) Rules 2006 (as amended) ratified undersection 133 of the Act read with the Companies (Accounts) Rules 2014. This responsibilityalso includes maintenance of adequate accounting records in accordance with the provisionsof the Act for safeguarding 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 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 financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

The Board of Directors are responsible for overseeing the Company's financial reportingprocess.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

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

• Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness 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 basisof accounting 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 financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii)to evaluate the effect of anyidentified misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant defficiencies 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.

Report on Other Legal and Regulatory Requirements

1. 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 and the Cash Flow Statementdealt with by this Report are in agreement with the books of account

d) In our opinion the aforesaid the financial statements comply with the accountingprinciples generally accepted in India including the Companies (Accounting Standards)Rules 2006 (as amended) ratified under section 133 of the Act read with the Companies(Accounts) Rules 2014.

e) On the basis of the written representations received from the directors as on 31stMarch 2019 taken on record by the Board of Directors none of the directors aredisqualified as on 31st March 2019 from being appointed as a director in terms of Section164 (2) of the Act.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure A".

g) With respect to the other matters included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended in our opinionand to best of our information and according to the explanations given to us :

i. The Company does not have any pending litigations which may have a material bearingon its state of affairs.

ii. The Company has not undertaken any derivative trading during the year nor it hasany outstanding thereof

iii. There has been no occasion in case of the company during the year under audit totransfer any sums of Investor Education and Protection Fund.

2. 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 B a statement on the matters specified in paragraphs 3and 4 of the Order.

For Saurabh R Shah & Co
Chartered Accountants
(Firm Registration No. 127176W)
Saurabh R Shah
Place : Ahmedabad Partner
Date : 30th May 2019 (Membership No. 117471)

ANNEXURE A TO THE INDEPENDENT AUDITORS' REPORT

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

We have audited the internal financial controls over financial reporting of M/s PurohitConstruction Limited (‘the company) as of March 31 2019 in conjunction with ouraudit of the financial statements of the company for the year ended on that date.

Management's Responsibility for Internal Financial Control

The Company's management is responsible for establishing and maintaining internalfinancial control based on the internal control over financial reporting criteriaestablished by the company considering the essential components of internal control statedin Guidance Note on Audit of Internal Financial Controls over Financial Reporting issuedby the Institute of Chartered Accountants of India ("ICAI"). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial control that were operating effectively for insuring the orderly and efficientconduct of its business including adherence to the Company's policies the safeguardingof its assets the prevention and detection of fraud and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards of Auditing both issued by ICAI andprescribed under section 143(10) of the Companies Act 2013 to the extent applicable toan audit of Internal Financial Controls. These Standards and the Guidance Notes requiredthat 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 this financial statement were established and maintained andif such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls systems over financial reporting with reference to thisfinancial statement and their operating effectiveness. Our audit of internal financialcontrols over financial reporting included obtaining and understanding of internalfinancial controls over financial reporting with reference to this financial statementassessing the risk that material weakness exists and testing and evaluating the designand operating effectiveness of the internal control based on the assessed risk.

The procedures selected depend on the auditors' judgement including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis of our audit opinion on the internal financial control over financialreporting with reference to this financial statement.

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 withreference to this financial statement and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A Company'sinternal financial control over financial reporting with reference to this financialstatement includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions 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 the management and directors of the company;

(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 Control over Financial Reporting

Because of the inherent limitations of internal financial control over financialreporting with reference to this financial statement including the possibility ofcollusion or improper management override of controls material misstatements due to fraudor error may occur and not be detected. Also projections of any evaluation of theinternal financial control over financial reporting with reference to this financialstatement to future periods are subject to the risk that the internal financial controlover financial reporting with reference to this financial statement may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting with reference to this financial statement and suchinternal financial controls over financial reporting with reference to this financialstatement were operating effectively as at March 31 2019 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For Saurabh R Shah & Co
Chartered Accountants
(Firm Registration No. 127176W)
Saurabh R Shah
Place : Ahmedabad Partner
Date : 30th May 2019 (Membership No. 117471)

ANNEXURE ‘B' TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Purohit Construction Limited of evendate)

i. In respect of the Company's fixed assets:

(a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) All fixed assets have not been physically verified by the management during theyear but there is a regular programme of verification which in our opinion is reasonablehaving regard to the size of the Company and the nature of its assets. According to theinformation and explanations given to us no material discrepancies were noticed on suchverification.

(c) According to the information and explanations given to us the records examined byus and based on the examination of the conveyance deeds provided to us we report thatthe title deeds of the properties held by the company are held in it's name.

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

iii. According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms limited liabilitypartnerships or other parties covered in the register maintained under Section 189 of theCompanies Act 2013 except those in the nature of contractual obligations. Accordinglythe provisions of clause 3(iii) (a) (b) and (c) of the Order are not applicable to theCompany and hence not commented upon.

iv. In our opinion and according to the information and explanations given to us thereare no loans guarantees and securities granted in respect of which provisions of Section185 and 186 of the Companies Act 2013 are applicable and not commented upon. Based on ouraudit procedures performed for the purpose of reporting the true and fair view of thefinancial statements and according to information and explanations given by themanagement the company has complied with provisions of Section 186 of the Companies Act2013 in respect of investments made during the year.

v. According to the information and explanations given to us the Company has notaccepted deposits during the year and does not have any unclaimed deposits as at March 312019 and therefore the provisions of the clause 3 (v) of the Order are not applicable tothe Company.

vi. According to the information and explanations given to us the maintenance of costrecords has not been specified by the Central Government under section 148(1) of theCompanies Act 2013 for the business activities carried out by the Company. Thus reportingunder clause 3(vi) of the order is not applicable to the Company.

vii. The Company is generally regular in depositing with the appropriate authoritiesundisputed statutory dues including provident fund employees' state insurance incometax sales tax wealth tax service tax Goods and Services Tax custom duty excise dutyVAT cess and other material statutory dues applicable to it to the appropriateauthorities. According to the information and explanations given to us no undisputedamounts payable in respect of provident fund employees state insurance income tax salestax wealth tax service tax Goods and Services Tax custom duty excise duty VAT cessand other material statutory dues were outstanding at the year end for a period more thansix months from the date they become payable.

According to the information and explanations given to us no amount payable in respectof income tax wealth tax sales tax custom duty excise duty value added tax goodsand service tax and cess were unpaid on account of any dispute except the following underincome tax and service tax :

Nature of the statute Nature of dues Forum where Dispute is Pending Period to which the amount relates Date of Filling of Appeal Rs. (In Lakhs)
Income Tax Act 1961 Section 271 (1)(c) of IT Act 1961 CIT Appeal – 9 Ahmedabad FY 2009-10 06.04.2015 50.68
Central Excise Act 1944 CCR2004 r.w. Finance Act 1994 AC of CGST Div –VII Ahmedabad July'12 to March'17 15.05.2018 4.50

viii. Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to information and explanations givenby the management the Company has not taken any loans or borrowings from financialinstitutions banks and government or has not issued any debentures. Hence reporting underclause 3 (viii) of the Order is not applicable to the Company.

ix. Based on our audit procedures performed for the purpose of reporting the true andfair view of the financial statements and according to information and explanations givenby the management the Company has not raised moneys by way of initial public offer orfurther public offer (including debt instruments) or term loans and hence reporting underclause 3 (ix) of the Order is not applicable to the Company.

x. To the best of our knowledge and according to the information and explanations givento us no fraud by the Company or no material fraud on the Company by its officers oremployees has been noticed or reported during the year.

xi. In our opinion and according to the information and explanations given to us theCompany has paid/provided managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act.

xii. In our opinion the Company is not a Nidhi Company and hence reporting underclause 3 (xii) of the Order is not applicable to the Company.

xiii. In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the notes to the financial statements as required bythe applicable accounting standards.

xiv. According to the information and explanations given to us and overall examinationof the balance sheet the Company has not made any preferential allotment or privateplacement of shares or fully or partly paid convertible debentures and hence reportingunder clause 3 (xiv) of the Order is not applicable to the Company.

xv. In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsDirectors or persons connected to its directors and hence provisions of section 192 of theCompanies Act 2013 are 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 Saurabh R Shah & Co
Chartered Accountants
(Firm Registration No. 127176W)
Saurabh R Shah
Place : Ahmedabad Partner
Date : 30th May 2019 (Membership No. 117471)

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