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Era Infra Engineering Ltd.

BSE: 530323 | NSE: ERAINFRA | Series: NA | ISIN: INE039E01020 | SECTOR: Infrastructure - General

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Sep 12, 16:00
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Era Infra Engineering is not traded on BSE in the last 30 days

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Sep 12, 15:31
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    1.50

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Era Infra Engineering is not traded on NSE in the last 30 days

Annual Report

For Year :
2015 2014 2013 2012 2011 2010 2009 2008 2007

Auditor's Report

We have audited the accompanying financial statements of Era Infra Engineering Limited (the Company) which comprise the Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss and the Cash Flow Statement for the year than ended and a summary of significant accounting policies and other explanatory statements. Management''s responsibility of financial statements The Company''s Board of Directors is responsible for the matters 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 Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of internal financial control, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. Auditor''s responsibility 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 accounting and auditing standards and matter''s which are required to be included in the audit report under the provisions of the Act and the Rules made there under. 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 ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Financial Statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the standalone financial statements that give true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on whether the Company has in place an adequate internal financial controls system over financial reporting and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by Company''s Directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements. Opinion In our opinion and to the best of our information and according to the explanations given to us, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India: i. in the case of the Balance Sheet, of the state of affairs of the Company as at 31st March, 2015; ii. in the case of the Statement of Profit and Loss, of the Loss for the year ended on that date; and iii. in the case of the Cash Flow Statement, of the cash flows for the year ended on that date. Emphasis of Matters Attention is drawn to the following: (a) Note No 1(b)(vi) of Financial Statements regarding recognition of revenue based on bills submitted to Joint Ventures/ Associates though not accounted for by such Joint Ventures/ Associates. (b) Note No 4.1 (vi) of the Notes to Accounts regarding perfection in creation of security under Corporate Debt Restructuring (CDR) Mechanism as stated in the said note. (c) Note No 7 of Financial Statements regarding non ascertaining complete particulars (including interest payable) of dues to micro, small and medium enterprises under MSMED Act, 2006 and non provision of liability, if any. (d) Note No 9 of Financial Statements regarding noncompliance of standard condition of CDR scheme in regarding sale of fixed assets without prior approval of CDR EG. (e) Note No 34 of the Notes to Accounts regarding pending application seeking approval from Central Government for excess remuneration paid to managerial personnel. (f) Note No 35 of Financial Statements regarding classification of Company as Non Performing Asset (NPA) by some lenders as stated in the said note. (g) Note No 36 of the Notes to Accounts regarding Company''s exposure (including the exposure through its subsidiaries) in the nature of long-term investments of Rs, 108,744.47 lacs and loans & advances of Rs, 1,631.28 lacs in its subsidiaries viz. Era Infrastructure (India) Limited and Rampur Highway Project Limited and Company''s exposure (including the exposure through its subsidiaries) in the nature of long-term investments of Rs, 19,658.27 lacs and loans & advances of Rs, (2,313.43 lacs) in its Associates viz. Gwalior Bypass Project Limited and Hyderabad Ring Road Project Limited. On the basis of book value of these Companies, there is a diminution in the value of Rs, 30,877.42 lacs of these investments, which in the opinion of the management is temporary in nature. (h) No 37 of Financial Statements with regard to non-receipt of Confirmation of balances from Debtors, Creditors, and Advances paid/received, equipment finance lenders and Other Liabilities. These amounts are subject to adjustments, if any, after reconciliation and for identification of doubtful debts/ advances, which are not ascertainable at this stage. Our opinion is not qualified in respect of these matters. 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. 2. As required by section 227(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 purposes 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 those books. c) the Balance Sheet, the Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the 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 Companies (Accounts) Rules, 2014. e) On the basis of written representations received from the directors as on 31 March, 2015, taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2015, from being appointed as a director in terms of Section 164(2) of the Act. f) With respect to the other matters included in the Auditor''s Report and to our best of our information and according to the explanations given to us : i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements refer Note 23 of the financial statements except in cases of pending under section 138 of Negotiable Instruments Act wherein financial implication cannot be ascertained and pending winding up petition. ii. The company did not have any derivative contracts. In respect to provisions for material foreseeable loses relating to long term contracts, it is not possible to ascertain amount of foreseeable losses due to nature of business and other various reasons such as extension of period, quantity and also price escalation. iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company. (i) (a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets. (b) The fixed assets are physically verified by the management according to a phased programmer designed to cover all the items over a period of three years, which in our opinion is reasonable having regard to the size of the Company and nature of its assets. Pursuant to the programmer, a portion of the fixed assets has been physically verified by the management during the year and no material discrepancies between the book records and the physical inventory have been noticed. (ii) (a) As explained to us, the inventory has been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable in relation to the size of the company. (b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size of the company and the nature of its business. (c) In our opinion and according to the information and explanations given to us and on the basis of our examination of the records of inventory, the company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the books records were not material and have been properly dealt with in the books of accounts. (iii) (a) The Company has granted unsecured loan to its subsidiaries, covered in the register maintained under section 189 of the Companies Act, 2013 (''the Act'') (b) In respect of interest free loans granted to subsidiaries covered under section 189 of the Act, the terms of arrangement for payment of principal are payable on demand. Accordingly, paragraph 3(iii)(a) is not applicable to the Company. (c) In respect of the aforesaid advances, as per the information made available to us, there is no overdue amount exceeding Rupees One Lac as at year end. (iv) 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 with regard to purchases of inventory, fixed assets and with regard to execution of contracts, sale of goods and services. However as informed to us there is a continuous procedure to strengthen the same and the internal controls over accounting of consumption, wastage, material reconciliation need further strengthening. (v) In our opinion and according to the information and explanations given to us, the company has not accepted any deposits from public to which the directives issued by Reserve Bank of India and provisions of sections 73 to 76 of the Companies Act, 2013, including rules framed there under, apply. Further, no order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any other tribunal. (vi) We have broadly reviewed the books of accounts maintained by the Company pursuant to the Rules made by the Central Government regarding the maintenance of Cost Records under clause of sub section (1) of section 148 of the Companies Act, 2013 and are of the opinion that prima facie, the prescribed accounts and records have been maintained. We have however not made a detailed examination of the records with a view to determine whether they are accurate or complete. (vii) (a) According to the information and explanations given to us and according to the books and records produced before us, the company is not regular in depositing with appropriate authorities undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales-tax, wealth tax, service tax, duty of customs, duty of excise, value added tax, cuss and any other statutory dues with the appropriate authority, as applicable to it. The arrears of outstanding statutory dues appearing as at year end for a period of more than six months from the date they became payable are as under: Particulars Amount (Rs, Lacs) Liability Under various Acts Income Tax Act 1,054.44 Royalty under various State Royalty Acts 127.49 Employees'' Provident Fund Act 434.36 Employee State Insurance Act 2.24 Finance Act, 1994 (Service Tax) 665.39 VAT/WCT under various state Acts 90.68 (b) According to the information and explanations given to us and the records of the Company examined by us, dues of sales tax, income tax, customs duty, wealth tax, service tax, excise duty, value added tax and cess which have not been deposited on account of disputes and the forum where the dispute is pending, are as under: Name of the Dues/ Name Disputed Amount Period to which Forum Where of the Statute (Rs,in Lacs) amount relates Dispute is Pending Sales Tax / Value Added Tax West Bengal VAT Demand 90.94 2004-05 & 2007-08 Commercial Tax Officer, Kolkata Delhi VAT 428.06 2009-10 DVAT Tribunal UP VAT 2.31 2005-06 Tribunal Punjab Value Added Tax Demand 1.85 2011-12 Commissioner Name of the Dues/ Name Disputed Amount Period to which of the Statute (Rs, in Lacs) amount relates Customs/ Excise Duty Customs Act 26.21 2007-08 Customs Act 562.48 2012-13 Excise Act 11.39 2012-13 & 2013-14 Excise Act 13.88 2012-13 & 2013-14 central Excise Act 2.93 2011-12 & 2012-13 Excise Act 0.34 2013-14 Excise Act 3.70 2013-14 Excise Act 3.58 2012-13 Excise Act 1.45 2013-14 Excise Act 7.31 2012-13 Service Tax Finance Act,1994 3,244.64 2007-08 Finance Act,1994 310.34 2008-09 Finance Act,1994 450.37 2008-09 Finance Act,1994 116.53 2009-10 & 2010-11 Finance Act,1994 34.16 2010-11 & 2011-12 Finance Act,1994 2,090.52 2010-11 & 2011-12 TRIBUNAL AUTHORITY Finance Act,1994 73.11 2006-07 Income Tax Income Tax Act, 1961 120.73 2008-09 Income Tax Act, 1961 78.55 2009-10 Income Tax Act, 1961 46.68 2010-11 Income Tax Act, 1961 (TDS) 139.60 2011-12 Royalty Madhya Pradesh Royalty Demand 57.38 2008-09 Madhya Pradesh Royalty Demand 100.00 2006-07 Madhya Pradesh Royalty Demand 20.40 2006-07 Andhra Pardesh Royalty Demand 28.04 2004-05 Labour Cess The Building & other Construction 85.61 2006-07 Workers (Regulation of Employment & Condition of Service) Act, 1996 Name of the Forum Where Dispute is pending Dues/ Name of the Statute Customs/ Excise Duty Customs Act Commissioner of Customs (port),Kolkate Customs Act Commissioner of Customs,Mumbsi Excise Act The Additional Commissioner of central Excise,Meerut-1 Excise Act The Attritional Commissioner of Central Excise,Meerut-1 Excise Act The Attitiona1 Commissioner of central Excise,Meerut-1 Excise Act Asst. Commissioner of central Excise, Dehradun Excise Act Asst. Commissioner of central Excise, Dehradun Excise Act Jt. Commissioner of central Excise, Dehradun Excise Act Jt. Commissioner of central Excise, Dehradun Excise Act Jt. Commissioner of central Excise, Dehradun Service Tax Finance Act,1994 The additional commissioner of (Adjudication), central Excise,Delhi-1 CR Building IP Estate, New Delhi Finance Act,1994 The additional commissioner of (Adjudication), central Excise,Delhi-1 CR Building IP Estate, New Delhi Finance Act,1994 The additional commissioner of (Adjudication), central Excise,Delhi-1 CR Building IP Estate, New Delhi Finance Act,1994 The additional commissioner of (Adjudication), central Excise,Delhi-1 CR Building IP Estate, New Delhi Finance Act,1994 The additional commissioner of (Adjudication), central Excise,Delhi-1 CR Building IP Estate, New Delhi Finance Act,1994 TRIBUNAL AUTHORITY Finance Act,1994 TRIBUNAL AUTHORITY,R.K.PURAM Income Tax Income Tax Act, 1961 Commoner of income Tax (appeals) Income Tax Act, 1961 Commoner of income Tax (appeals) Income Tax Act, 1961 Commoner of income Tax (appeals) Income Tax Act, 1961 Commoner of income Tax (appeals) (TDS) Royalty Madhya Pradesh Revenue Board, Gwalior Royalty Demand Madhya Pradesh Revenue Board, Gwalior Royalty Demand Madhya Pradesh Revenue Board, Gwalior Royalty Demand Andhra Pardesh Commissioner, Ujjain Royalty Demand Labour Cess The Building & other Hon''able Supreme court Construction Workers (Regulation of Employment & Condition of Service) Act, 1996 (c) According to the information and explanations provided to us, the company has transferred to investor education and protection fund in accordance with the relevant provisions of the Companies Act, 1956 (1 of 1956) and rules made there under within the stipulated time. (viii) The company does not have any accumulated losses as at the end of the year. The Company has incurred cash losses during the current year, and immediately preceding financial year. (ix) In our opinion and according to information and explanations given to us, the Company has defaulted in repayment of dues to financial institutions, bank and debenture-holder during the year. The details of defaults are given hereunder: Particulars Amount (Rs, Lacs) Period of Default (Days) Interest on Bank Term Loan 4,531.41 01-60 Days 2,341.94 61-120 Days 268.42 121-180 Days 210.92 181-240 Days 210.73 241-300 Days 207.08 301-365 Days Principal / Term Loans from Banks 1,258.49 01-60 Days 6,750.00 301-365 Days (x) According to the information and explanations given to us, the company has given guarantees for loans taken by others from banks and financial institutions. In our opinion and according to the information and explanations given to us, the terms and conditions of such guarantees to banks or financial institutions are not prejudicial to the interest of the company. (xi) According to the information and explanations given to us, the term loans were applied overall for the purpose for which the loans were obtained. (xii) Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per information and explanation given by the management, we report that no fraud on or by the Company has been noticed or reported during the course of our audit. For G. C. SHARDA & CO. Chartered Accountants FRN:500041N CA. Pankaj Jain Partner M. No. : 505948 Place : Noida Date : 30th May, 2015