you are here:

Perfect Infraengineers Ltd.

BSE: 0 | NSE: PERFECT | Series: SM | ISIN: INE925S01012 | SECTOR: Construction & Contracting - Civil

BSE Live

(%)
Volume
No Data Available
  • Prev. Close

  • Open Price

  • Bid Price (Qty.)

    ()

  • Offer Price (Qty.)

    ()

Perfect Infraengineers is not listed on BSE

NSE Live

Nov 11, 15:31
10.25 0.00 (0.00%)
Volume
AVERAGE VOLUME
5-Day
14,400
10-Day
14,400
30-Day
16,600
6,000
  • Prev. Close

    10.25

  • Open Price

    10.25

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

Annual Report

For Year :
2016

Auditor's Report

To,

THE MEMBERS OF PERFECT INFRAENGINEERS LTD

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of PERFECT INFRAENGINEERS LTD (the Company), which comprise the Balance Sheet as at 31 March 2016, 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.

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 (Indian GAAPs), including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014, as applicable.

This responsibility also includes maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding the assets of the Company and for preventing and detecting 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 adequate internal financial controls, 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 matters 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 disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the 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 financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the 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.

Basis of qualified opinion

The Company has provided gratuity liability on the basis of arithmetical basis instead of actuarial valuation basis, which constitutes a departure from the Accounting Standard- AS15 Employee Benefits. Since the actuarial valuation of gratuity is not available impact of the same on standalone financial results could not be ascertained.

Qualified Opinion

In our opinion and to the best of our information and according to the explanations given to us, except for the possible effects of the matter described in Basis of qualified opinion above, the aforesaid 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;

a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2016;

b) in the case of the Statement of Profit and Loss, of the Profit for the year ended on that date; and

c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) 0rder,2016 (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, a statement on the matters specified in the 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 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.

c) The Balance Sheet, the Statement of Profit and Loss and the Cash Flow Statement dealt with by this Report are in agreement with the books of account.

d) In our opinion, except for the possible effects of the matter described in Basis of qualified opinion above, the aforesaid standalone 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 the written representations received from the directors as on 31 March,

2016, and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2016, from being appointed as a director in terms of Section 164(2) of the Act, as applicable.

f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure B.

g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies ( Audit and Auditors ) Rules ,2014 ,in our opinion and to the 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 standalone financial statements - Refer Note No.30 to the financial statements ;

ii. The Company does not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

ANNEXURE A TO INDEPENDENT AUDITORS'' REPORT

Referred to in paragraph 1 under the heading Report on Other Legal and Regulatory

Requirements of our report of even date to the members of PERFECT INFRAENGINEERS LTD

on the standalone financial statements for the year ended March 31,2016.

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

(b) As explained to us, the Company has a phased program of physical verification of the fixed assets, which in our opinion is reasonable, having regard to the size of the Company and nature of its assets. During the year the Company, in accordance with the said program, has physically verified certain fixed assets. No material discrepancies were noticed on such physical verification.

(c) According to the information and explanations given to us and based on the records produced, the title deeds of the immovable properties are held in the name of the Company.

(ii) The inventories have been physically verified during the year by the management. In our opinion, the frequency of verification is reasonable. The discrepancies noticed on verification between the physical stocks and the book records were not material and same have been properly dealt with.

(iii) According to the information and explanations given to us, the Company has not granted any loans, secured or unsecured, to companies, firms, limited liability partnerships or other parties covered in the register maintained under Section 189 of the Act. Accordingly clause (iii) of Paragraph 3 of the Order is not applicable to the Company.

(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, in respect of investments made. According to the information and explanations given to us, the Company has not provided any guarantee/security nor has given any loans.

(v) According to the information and explanations given to us, the Company has not accepted any deposits from public therefore; the provisions of clause (v) of Paragraph 3 of the Order are not applicable to the Company.

(vi) According to the information and explanations given to us, the Central Government has not prescribed the maintenance of cost records under section 148 (1) of the Act, in respect of business activities carried on by the Company. Therefore, the provisions of clause (vi) of Paragraph 3 of the Order are not applicable to the Company..

(vii) (a) On the basis of examination of the relevant records and according to the information and explanations given to us, we are of the opinion that the Company is generally regular in depositing with the appropriate authorities undisputed statutory dues including Provident Fund, Employees'' State insurance, Income-tax, Sales Tax, Service Tax, Value Added Tax, Duty of Customs, Duty of Excise, Cess and other applicable statutory dues.

On the basis of examination of the relevant records and according to the information and explanations given to us, except for Sales Tax / Vat of Rs. 6,22,655/-, no undisputed amounts payable in respect of Provident Fund, Employees'' State insurance, Income-tax, Service Tax, Duty of Customs, Duty of Excise, Cess and other applicable statutory dues were outstanding, as at 31st March 2016 for a period of more than six months from the date they became payable.

(b) On the basis of the books of accounts and records of the Company as produced and examined by us, except for disputed Value Added Tax dues as detailed below, there are no dues of Income Tax, sales Tax, Service Tax, Duty of customs and Duty of excise which have not been deposited on account of any dispute.

Name of the Statute

Nature of Dues

Amount

Year to which the amount relates

Forum where dispute is pending

Karnataka VAT Act

VAT

5,31,378/-

2011-12

JT. Comm. Of Commercial taxes( Appeals) -4, Bangalore

Maharashtra VAT Act

VAT

7,12,688/-

2008-09

Dy. Commissioner of Sales Tax (Appeals),Thane

Maharashtra VAT Act

VAT

43,815/-

2011-12

Dy. Commissioner of Sales Tax (Appeals),Thane

Out of the above disputed value added tax dues, an amount of Rs. 2,04,478/- has been paid by the Company under protest and has also furnished a bank guarantee of Rs.3,71,900/- in one of the case.

(viii) On the basis of our examination of the records of the Company and according to the information and explanations given to us, the Company has defaulted in repayment of borrowings repayable on demand to bank. The Company has not availed any loans or borrowings from government or debenture holders. The lender wise details of the amount of default and the period of default are as under.

Sr.

No.

Name of The Lenders

Nature of Dues

Amount of Default as at 31st March, 2016

Period

of

Default

1

Axis Bank

Overdue Amount

of Loan repayable

on demand

Rs. 34,84,711/-

Mar-16

(ix) According to the information and explanations given to us and on the basis of examination of records, the money raised by the Company by way of initial public offer and term loans during the year were applied for the purposes for which those are raised. The Company has not raised any money by way of further public offer (including debt instruments) during the year.

(x) Based on our audit procedures performed for the purpose of reporting the true and fair view of the financial statements and on the basis of information and explanations given by the management, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.

(xi) According to the information and explanations given to us and on the basis of examination of records, the managerial remuneration paid/provided during the year is in accordance with provisions of section 197 read with schedule V of the Act.

(xii) According to the information and explanations given to us and in our opinion, the Company is not a Nidhi Company and accordingly the provisions of clause (xii) of Paragraph 3 of the Order are not applicable to the Company.

(xiii) According to the information and explanations given to us and based on our examination of records of the Company, the transactions entered with related parties are in compliance with provisions of section 177 and 188 of the Act, where applicable and the details of such transactions are disclosed in the Standalone Financial Statements as required by the applicable accounting standards.

(xiv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company during the year has made private placement of shares complying with the provisions of section 42 of the Act and has utilised the said money for the purposes for which the funds were raised. The Company during the year has neither made any preferential allotment of shares nor issued fully or partly convertible debentures.

(xv) In our opinion and according to the information and explanations given to us and based on our examination of records of the Company, the Company during the year has not entered into any non cash transactions with directors or persons connected with the directors and accordingly the provisions of clause (xv) of Paragraph 3 of the Order are not applicable to the Company.

(xvi) In our opinion and according to the information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.

Annexure - B to the independent auditor''s report of even date on the financial statements of Perfect Infraengineers Limited

Referred to in paragraph 2(f) under the heading Report on Other Legal and Regulatory Requirements of our report of even date to the members of PERFECT INFRAENGINEERS LTD on the standalone financial statements for the year ended March 31,2016.

Report on the internal financial controls under clause (i) of sub-section 3 of Section 143 of the companies act, 2013 (the Act)

We have audited the internal financial controls over financial reporting of Perfect Infraengineers Limited (the Company) as of 31st March, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Management''s Responsibility for Internal Financial Controls

The Company''s management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the Guidance Note) issued by the Institute of Chartered Accountants of India (''ICAI''). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors'' Responsibility

Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31st March, 2016, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by ICAI.

For Godbole Bhave & Co.

Chartered Accountants

FRN 114445W

Arvind Mahajan

Place: Mumbai Partner

Date: 19.05.2016 Membership No. : 100483