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KNR Constructions Ltd.

BSE: 532942 | NSE: KNRCON |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE634I01029 | SECTOR: Construction & Contracting - Civil

BSE Live

Apr 09, 16:00
185.50 -2.45 (-1.30%)
Volume
AVERAGE VOLUME
5-Day
5,012
10-Day
6,733
30-Day
5,719
5,024
  • Prev. Close

    187.95

  • Open Price

    191.85

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Apr 09, 15:53
185.05 -3.65 (-1.93%)
Volume
AVERAGE VOLUME
5-Day
49,653
10-Day
130,307
30-Day
165,577
68,159
  • Prev. Close

    188.70

  • Open Price

    192.70

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    185.05 (2)

Annual Report

For Year :
2018 2017 2016 2015 2014 2013 2012 2011 2010

Auditor's Report

1. We have audited the attached Balance Sheet of KNR Constructions Limited as at March 31, 2011, the Profit and Loss Account for the year ended on that date and the Cash Flow Statement for the year ended on that date both annexed thereto, in which are incorporated the returns from Dubai branch (the Branches) audited by other auditors. These financial statements are the responsibility of the Company''s management. Our responsibility is to express an opinion on these financial statements based on our audit. 2. We conducted our audit in accordance with the auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining on a test check basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. As required by the Companies (Auditor''s Report) Order, 2003 (CARO) issued by the Government of India in terms of sub- section (4A) of section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. 4. Further to our comments in the Annexure referred to in paragraph 3 above, we report that: a) we have obtained all 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 it appears from our examination of those books and proper returns, adequate for the purposes of our audit have been received from the branches not visited by us. The Branch Auditors Reports have been forwarded to us and appropriately dealt with; c) the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of accounts and with the audited returns from the Branches; d) in our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956; e) in our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956, 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 March 31, 2011 ; (ii) in the case of the Profit and Loss Account, of the profit 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. 5. On the basis of written representations received from the directors, as on March 31, 2011 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on March 31, 2011 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956. Annexure to the Auditors'' Report (Referred to in Paragraph 3 of our Report of even date) i) In respect of its fixed assets a) The Company has maintained proper records showing full particulars, including quantitative details and situation of its fixed assets on the basis of available information. b) As explained to us, all the fixed assets have been physically verified by the management during the year in a phased periodical manner, which in our opinion is reasonable having regard to the size of the Company and nature of its assets. No material discrepancies were noticed on such physical verification. c) The fixed assets disposed off during the year in our opinion, do not constitute a substantial part of the fixed assets of the Company and such disposal has in our opinion, not affected the going concern status of the Company. ii) In respect of its inventories a) According to the information and explanations given to us, the Management has physically verified the inventory during the year. In our opinion, having regard to the nature of business and location of stocks, the frequency of verification is reasonable. 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 pinion and according to the information and explanations given to us, the Company has maintained proper records of its inventories. The discrepancies noticed on verification between the physical stocks and the book records were not material and have been properly dealt with in the books of account. iii) a) According to the information and explanations given to us, the Company has granted unsecured loans to Companies covered in the Register maintained under Section 301 of the Companies Act, 1956. There are companies under the same management as defined under Sub-section (1-B) of section 370 of the Companies Act, 1956. b) There are no specific agreements for these transactions and were made on account basis. In the absence of agreements for these loans, the terms and conditions, their impact on the interests of the Company cannot be ascertained. c) The Company has given advances / loans to its wholly owned subsidiaries (including foreign companies) during the year. In respect of the said advances / loans, the maximum amount outstanding at any time during the year is Rs.181.54 lakhs and the year end balance is Rs.181.54 lakhs. d) In the absence of agreements, the transactions were made on an on-account basis and hence the question of regularity of payment of principal and interest dose not arise. e) In the absence of specific agreements for these transactions, the question of over- dues does not arise for these transactions. f) The Company has taken unsecured loans during the year from other parties covered in the Register maintained under Section 301 of the Companies Act, 1956. There are no specific agreements for these transactions and were made on an on- account basis. In the absence of agreements, the transactions were made on an on-account basis and hence the regularity of payment of principal and interest dose not arise. iv) In our opinion and according to the information and explanations given to us, the company has internal control system commensurate with its size and the nature of its business for the purchase of inventory and fixed assets. v) In respect of contracts or arrangements entered in the register maintained in pursuance of section 301 of the Companies Act, 1956 to the best of our knowledge and belief and according to the information and explanations given to us: a) the Particulars of contracts or arrangements referred to in section 301 that needs to be entered into the register maintained under the said section have been so entered. b) in our opinion , the transactions ( excluding loans reported under paragraph(iii) above) exceeding the value of Rs.5 lakhs in respect of any party during the year have been made at prices which are prima facie reasonable having regard to the prevailing market prices at the relevant time where such market prices are available. vi) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public. Accordingly, the provisions of clause 4(vi) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the Company. vii) In our opinion, the internal audit functions carried out during the year by a firm of Chartered Accountants appointed by the management have been commensurate with the size of the Company and the nature of its business. viii) In our opinion and according to the information and explanations given to us, the Central Government has not prescribed the maintenance of cost records for any of the products or activities of the company. ix) In respect of statutory dues: a) According to the Information and explanations given to us, the Company has been generally regular in depositing undisputed statutory dues including Provident Fund, Employees State Insurance, Income Tax, Wealth Tax, Sales Tax, Service Tax, Custom Duty, Excise Duty, Cess and any other material statutory dues applicable to it with the appropriate authorities during the year. b) According to the Information and explanations given to us, there were no undisputed amounts payable in respect of wealth tax, customs duty, excise duty and cess which were in arrears as at March 31, 2011 for a period of more than six months from the date they became payable, expect Income Tax dues amounting to Rs. 44.56 lakhs relating to the financial year 2002-03. c) The disputed statutory dues that have not been deposited on account of matters pending before appropriate authorities are as under: Name of statute Nature of dues Rupees in lakhs Income Tax Act, 1961 Income Tax 13.52 Income Tax 2096.70 Income Tax 223.37 Andhra Pradesh Sales Tax 21.39 Sales Tax Act, 1957 Andhra Pradesh VAT 323.92 Value Added Tax Act, 2005 VAT 503.67 Karnataka VAT 100.00 Value Added Tax Act, 2005 VAT 30.52 VAT 81.52 VAT 12.16 Name of statute Period to which Forum where the amount relates dispute is pending Income Tax Act, 1961 F.Y 2005-06 Deputy Commissioner of Income Tax , Circle 2(1), Hyderabad F.Y 2006-07 Commissioner of Income Tax (Appeals) III, Hyderabad F.Y 2007-08 Commissioner of Income Tax (Appeals) III, Hyderabad Andhra Pradesh F.Y 2000-01 Sales Tax Tribunal, Sales Tax Act, 1957 General Hyderabad Andhra Pradesh F.Y 2008-09 Appellate Deputy Value Added Commissioner (CT), Tax Act, 2005 Punjagutta Division, Hyderabad F.Y 2009-10 Appellate Deputy Commissioner (CT), Punjagutta Division, Hyderabad Karnataka F.Y 2005-06 Joint Commissioner of Value Added Commercial Taxes, Tax Act, 2005 (Appeals), Bangalore. F.Y 2006-07 Joint Commissioner of Commercial Taxes, (Appeals), Bangalore. F.Y 2008-09 Joint Commissioner of Commercial Taxes, (Appeals), Bangalore. F.Y 2009-10 Joint Commissioner of Commercial Taxes, (Appeals), Bangalore. Note: Company has given bank guarantees for Rs 241.63 lakhs to the Karnataka State Government against disputed demands. x) The Company does not have accumulated losses and has not incurred cash losses during the financial year covered by our audit and the immediately preceding financial year. xi) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to financial institutions and banks. xii) In our opinion and according to the information and explanations given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares and debentures and other securities. Accordingly, the provisions of clause 4(xii) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the Company xiii) In our opinion, the Company is not a Chit Fund or a Nidhi or Mutual Benefit Fund/Society. Accordingly, the provisions of clause 4(xiii) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the Company. xiv) In our opinion and according to the information and explanations given to us, the Company does not deal or trade in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the Company. xv) In our opinion and according to the information and explanations given to us, the terms and conditions of the guarantees given by the Company for loans taken by others from banks and financial institutions are not prima facie prejudicial to the interests of the Company. xvi) To the best of our knowledge and belief and according to the information and explanations given to us, in our opinion, term loans availed by the Company were prima facie applied by the Company during the year for the purposes for which the same were obtained. xvii) According to the information and explanations given to us and on an overall examination of the balance sheet of the Company, funds raised on short-term basis have, prima facie, not been used for long-term investment. xviii) According to the information and explanations given to us, the Company has not made preferential allotment of shares or warrants during the year to a company covered in the register maintained under section 301 of the Companies Act, 1956. xix) According to the information and explanations given to us, no debentures have been issued by the Company. Accordingly the provisions of clause 4(xix) of the Companies (Auditor''s Report) Order, 2003 are not applicable to the Company. xx) During the year covered by our audit report, the company has not raised any money by public issues. xxi) To the best of our knowledge and belief and according to the information and explanations given to us, no fraud on or by the Company was noticed or reported during the year. For Sukumar Babu & Co Chartered Accountants (ICAI Registration No.004188S) Sd/- C. Sukumar Babu Partner M.No: 200/24293 Place: Hyderabad Date : 08-08-2011