TO THE MEMBERS OF SHELTER INFRA PROJECTS LIMITED
I. Report on the Indian Accounting Standards (IND AS) Financial Statements
We have audited the accompanying IND AS financial statements of Shelter InfraProjects Limited ("the Company") which comprise the Balance Sheet as at31stMarch 2018 the statement of profit and loss (including other comprehensive income)the statement of changes in Equity and the cash flow statement for the year then ended anda summary of significant accounting policies and other explanatory information.
II. Management's Responsibility for the Indian Accounting Standards (IND AS)Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese IND AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income the statement ofchanges in Equity and cash flows of the Company in accordance with the Accountingprinciples generally accepted in India including the Indian Accounting Standards (IND AS)specified under section 133 of the Act read with relevant rules issued there under. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgements and estimates that are reasonable and prudent; anddesign implementation and maintenance of internal financial controls that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of IND AS financial statements that give a true andfair view and are free from material misstatement whether due to fraud or error.
III. Auditor's Responsibility
Our responsibility is to express an opinion on these IND AS financial statements basedon our audit. We have taken into account the provisions of the Act and the Rules madethere under including the accounting and auditing standards and matters which are requiredto be included in the audit report under the provisions of the Act and the Rules madethere-under.
We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act and other applicable authoritative pronouncements issued by theInstitute of Chartered Accountants of India (ICAI). Those Standards and pronouncementsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the IND AS financial statements are free from materialmisstatement.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the IND AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theIND AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the IND AS financial statements that give a true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe accounting estimates made by Company's Directors as well as evaluating the overallpresentation of the IND AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the IND AS financial statements.
IV. Basis for Qualified Opinion
(i) Payment against director's remuneration since earlier year aggregating to Rs.42.53lakhs is pending approval of department of company affairs after application being made tothe effect by the company (refer Note no.-29(k); (ii) Non amortization for development ofright cost amounting to Rs.556.30 lakhs (refer to Note no.29(I); (iii) Non provision ofcomponent depreciation in the accounts (Refer Note No.29(j); (iv) Liability of lease rentnot paid/provided in the accounts (Refer Note No.29(h) (v) Qualified opinion:- In ouropinion and to the best of our information and according to the explanation given to usexcept for possible effect of matters referred to in 4 above the aforesaid financialstatements give the information required by the act in the matter so required and give atrue and fair view in conformity with the accouting principles generally accepted inindiaof the state of affairs of the company as on 31 st March 2018.its statement ofprofit and loss andits cash flows for the year ended on the date.
vi. 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-2 a statement on the matters specified in paragraphs 3and 4 of the Order to the extent applicable.
2. As required by Section 143(3) of the Act we report that: a) We have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purpose of our audit; b) In our opinion proper books ofaccount as required by law have been kept by the Company so far as appears from ourexamination of those books. c) The Balance Sheet Statement of Profit and Loss (includingother comprehensive its changes) statement of changes in Equity and the Cash FlowStatement dealt with by this Report are in agreement with the books of account. d) In ouropinion the aforesaid IND AS financial statements comply with the IND AS Standardsspecified under Section 133 of the Act read with relevant rules issued there under. e) Onthe basis of the written representations received from the directors as on 31st March2018 taken on record by the Board of Directors none of the directors is disqualified ason 31st March 2018 from being appointed as a director in terms of Section164(2) of the Act. f) Our separate report on adequacy of internal financial control systemand operating effectiveness of such controls is enclosed in Annexure-1.
3. 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 in our opinionand to the best our information and according to the explanations given to us: a) TheCompany has disclosed the impact of pending litigations on its financial position in itsfinancial statements Refer Note 29b to the financial statements. b) The Company didnot have any long-term contract including derivative contract which may lead to anymaterial foreseeable loss. c) There has been no delay in transferring amounts required tobe transferred to the Investor Education and Protection Fund by the Company.
|Place:- Kolkata |
|Date : May 29 2018 |
Matters included in the auditor's report pursuant to company's (Auditors Report) orderissued by Central Government.
(i) The company is maintaining records showing full particulars including quantitativedetails and situation of fixed asset.
The fixed assets have not been physically verified by the management during the yearand accordingly material discrepancies between the books of records and physical inventoryhave not been identified.
The title deeds of immovable property are held in the name of company.
(ii) Physical verification of inventory has been conducted at reasonable intervals bythe management.
(A) The procedure of physical verification for inventory followed by the management isreasonable and adequate in relation to the size of the company and the nature of itsbusiness.
(B) The company is maintaining proper records of inventory and discrepancies noticed onphysical verification were not material and have been properly dealt in the books ofaccounts.
(iii) The company has not granted any loan secured or unsecured to companies firms orother parties covered in the register maintained under Section-189 of the companies actduring the year.
(iv) The company has not raised any loan from Directors.
(v) The company has not accepted any deposits and as such the requirement of Clause-Vis not applicable to the company.
(vi) The central government has not prescribed any provision for maintenance of costrecords of the aforementioned company and accordingly no such cost record has beenmaintained. (viii)(a) The company is generally in depositing undisputed statutory duesincluding provident funds employees state insurance sales tax duties of customs dutyexcise duty value added tax cess and any other statutory dues to the extent applicableto it with the appropriate authorities and there is no arrear of outstanding statutorydues as at the last date of financial year for the period of more than six months from thedates they became payable.
(vii)(b) Details of the dues not paid on the account of disputes pending at differentforum bellow:
|Statute ||Nature of Dues ||Amount (Rs. In lacs) ||Financial Year ||Forum where dispute is pending to which the amount relates |
|Income Tax Act ||Income Tax and Interest ||1037.89 ||2011-12 ||ITAT Kolkata |
|Income Tax Act ||Income Tax and Interest ||64.37 ||2012-13 ||CIT Appeal Kolkata |
|Income Tax Act ||Income Tax and Interest ||275.15 ||2013-14 ||CIT Appeal Kolkata |
|GST ||Service tax & penalties ||346.36 ||2011-16 ||Commissioner of appeal GST & Central Excise |
The following long pending amount not yet been paid
|Sl.No. Particulars ||Amount (Rs. In lacs) |
|1. Income Tax on Dividend ||8.95 |
|2. Fringe Benefit Tax ||0.28 |
|3. Municipal Tax ||98.41 |
|Total ||107.64 |
Besides non availability of income tax positions in up-to-date context came in the wayto comment on above.
(viii) Based on the "one time settlement" and clearance from the bank on May2018 the company has not defaulted in repayment of dues to financial institution &banks. Company has no debenture holder or financial institutional borrowings during theyear.
(ix) The company has not raised money by way of initial public offer or further publicoffer or by way of term
(x) No fraud has been noticed or reported on by the company during the year.
(xi) Managerial remuneration paid by the company during the year is subject torequisite approval in terms of Section-197 of the Companies Act 2013.
(xii) The company is not a nidhi company.
(xiii) There has been no non compliance with relevant provisions of Companies Act inrespect of transaction with related parties.
(xiv) The company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year.
(xv) The company has not entered into any non cash transactions with directors orpersons connected with him.
(xvi) The company is not required to be registered under Section-45 IA of the ReserveBank of India Act 1934.
|Place ||Kolkata |
|Date ||29th May 2018 |