We have audited the accompanying standalone financial statements of PVP
Ventures Limited (''the Company'') which comprise the Balance Sheet as at
31st March, 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information (the Financial
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 (the Act) with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows of the Company in accordance with the accounting principles
generally accepted in India, including the Accounting Stan- dards
specified under section 133 of the Act, read with Rule 7 of the
Companies (Ac- counts) Rules, 2014.
This responsibility also includes maintenance of adequate accounting
records in ac- cordance with the provisions of the Act for safeguarding
the assets of the Company and for preventing and detecting frauds and
other irregularities; the selection and application of appropriate
accounting policies; making judgments and estimates that are reasonable
and prudent; and the design, implementation and maintenance of in-
ternal financial controls, that were operating effectively for ensuring
the accuracy and completeness of the accounting records, relevant to
the preparation and pre- sentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Our responsibility is to express an opinion on these standalone
financial statements based on our audit. We have taken into account the
provisions of the Act, the ac- counting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with the ethical requirements and plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosure in the financial statements. These
procedures selected depend on the auditor''s judgment, including the
assessment of the risk of material misstatement of the financial
statements, whether due to fraud or error. In making those risk as-
sessments, the auditor considers internal financial control relevant to
the Company''s preparation of the financial statements that give a true
and fair view in order to de- sign audit procedures that are
appropriate in the circumstances. An audit also in- cludes evaluating
the appropriateness of the accounting policies used and the rea-
sonableness of the accounting estimates made by the Company''s Board of
Directors, as well as evaluating the overall presentation of the
We believe that the audit evidence obtained by us is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone financial statements
give the information re- quired by the Act in the manner so required
and give a true and fair view in conformi- ty with the accounting
principles generally accepted in India, of the state of affairs of the
Company as at 31st March, 2015, and its Profit, and its cash flows for
the year end- ed on that date.
Emphasis of Matters
We draw the attention of members notes to the financial statements in
Note 12 with regard to the Unquoted investment of equity shares in
Subsidiary Companies Rs.54365.90 lakhs with provision for diminution in
carrying value provided for Rs.30000.00 lakhs and Note 13 unsecured and
good advances to subsidiaries Rs.218180.51 lakhs with provision for
diminution in carrying value provided for Rs.5160.16 lakhs. The
management is of the view that considering market value of the assets,
present value of investments and expected cash flows and expected
development of projects the provision already made are adequate (also
refer note 21.13) which describes the uncertainty related to the
outcome of the future events. Our opinion in respect of these matters
is not modified.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2015 ( the
Order), issued by the Central Government of India, in terms of
sub-section (11) of Section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 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 and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit.
b. In our opinion, proper books of account as required by law have
been kept by the Company so far as appears from our examination of
c. The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow State- ment dealt with by this Report are in agreement with the
relevant books of account.
d. In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under section 133 of the Act, read with
Rule 7 of the Compa- nies (Accounts) Rules, 2014
e. On the basis of written representation received from the Directors
as on 31st March, 2015 taken on record by the Board of Directors, none
of the directors of the Company is disqualified as on 31st March, 2015,
from being appointed as a director in terms of section 164(2) of the
f. With respect to the other matters to be included in the Auditor''s
Report in accordance with Rule 11 of the Companies (Audit and
Auditor''s) Rules, 2014, in our opinion and to the best of our
information and according to the explanations given to us:
1. The Company has disclosed the impact of the pending litigations on
its financial position in its financial statements – refer note 24.6 to
the financial statements.
2. The Company did not have any long term contracts including
derivative con- tracts for which there were any material forseeable
3. There were no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company.
Annexure To Independent Auditors'' Report
[Referred to in paragraph 1 of Report on Other Legal and Regulatory
Requirements in our Independent Auditors'' Report of even date]
1. a. In our opinion and according to the information and explanations
given to us, the Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
b. As per the information and explanations provided to us, the Company
has physically verified the fixed assets during this year and there is
no material dis- crepancies noticed on such verification.
2. a. According to the information and explanations given to us, the
management has conducted physical verification of inventory at
b. According to the information and explanations given to us the
procedures of physical verification of inventory followed by the
management is reasonable and adequate in relation to the size of the
Company and nature of its business.
c. According to the information and explanation given to us the
Company is maintaining proper records of inventory and there is no
material discrepancies noticed on physical verification.
3. According to the information and explanations given to us, the
Company has granted, secured and unsecured loans to subsidiary
Companies, the parties cov- ered in the register maintained under
section 189 of the Act. Total outstand- ing as at the year end is
Rs.58327.18 lakhs (including conversion of FCDs into Advances). It is
informed that these advances are interest free and recoverable on
demand and hence the overdue amount, receipt of principal amount and
the interest are not applicable.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business, for
purchases of inventory and fixed assets and for sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal controls
5. In our opinion and according to the information and explanation
given to us, the Company has not accepted deposits from public during
this year. Therefore the provisions of section 73 to 76 and relevant
rules framed thereunder and any con- travention of these provisions for
the year under audit are not applicable.
6. As per the information and explanations given to us, we are of the
opinion that the Company has made and maintained the cost records
pursuant to the Rules made by the Central Government under sub-section
(1) of Section 148 of the Act.
7. a. According to the information and explanation given to us, the
Company is depositing undisputed statutory dues with appropriate
authorities, like Provident Fund, Employee''s State insurance,
Income-tax, Sales-tax, Wealth-tax, Service tax, Customs Duty, Excise
Duty, Value Added Tax, Cess, wherever applicable, except few delays in
depositing Income Tax TDS. There are no undisputed Statutory
outstanding dues as at 31st March, 2015 for a period of more than six
months from the date they become payable.
b. According to the information and explanation given to us, there are
no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Customs
Duty, Excise Duty, Value Added Tax, Cess which have not been deposited
on account of any dis- pute, except the following:
STATUE PERIOD AMOUNT [RUPEES] DISPUTE PENDING BEFORE
Income Tax AY 2007-08 78.21 lakhs CIT-A, Hyderabad
Income Tax AY 2008-09 1112.35 lakhs High Court, Chennai
Income Tax AY 2009-10 13.24 lakhs CIT-A, Chennai
c. According to the information and explanation given to us, there are
no amount required to the transferred to investor education and
protection fund in accordance with the provisions of the Act.
8. In our opinion and according to the information and explanation
given to us the accumulated losses as at the end of the financial is
not more than 50% of its net worth. The Company has not incurred cash
losses during the financial year cov- ered by our audit and the
immediately preceding financial year.
9. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to the
financial institutions or banks or debenture holders.
10. In our opinion and according to the information and explanation
given to us, the Company has given corporate guarantee and security for
loans taken from the Banks by its group companies and others, and the
terms and conditions whereof are not prejudicial to the interest of the
11. In our opinion and according to the information and explanation
given to us, there are no term loans borrowed by the Company.
12. According to the information and explanation given to us, no fraud
on or by the Company has been noticed or reported during the course of
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