PBA INFRASTRUCTURE LIMITED
ANNUAL REPORT 2011-2012
AUDITORS` REPORT
To,
The Members of
PBA Infrastructure Limited
1. We have audited the annexed Balance Sheet of PBA INFRASTRUCTURE LIMITED
(the "Company") as at 31st March 2012 and also the annexed profit & Loss
account and Cash flow statement of the Company for the year ended on that
date, which we have signed under reference to this report. These financial
statements are the responsibility of the management of the company. Our
responsibility is to express opinion on these financial statements based on
our audit.
2. We have conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes, examining
on test 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 presentation of the financial statements. We
believe that our audit provides a reasonable basis for our opinion.
3. As required by the Companies (Auditors Report) order, 2003 as amended by
Companies (Auditor`s Report) (Amendment) order, 2004 issued by the Central
Government in terms of sub section (4A) of Section 227 of the Companies Act
1956, and on the basis of such checks as we may have considered appropriate
and according to the information and explanations given to us, we set out
in annexure a Statement on the matters specified in the paragraph 4 and 5
of the said order.
4. Further to our comments in the Annexure referred to in paragraph 3
above, we report that:-
1. We have obtained all the information and explanation which to the best
of our knowledge and behalf were necessary for the purpose of our audit.
2. In our opinion proper books of accounts as required by law have been
kept by the company so far as appear from our examination of these books.
3. The Balance Sheet and the Profit & Loss account and the Cash flow
Statement dealt with by the report are in agreement with the books of
accounts
4. In our opinion, these financial statements have been prepared in
compliance with the applicable accounting standards referred to in Sub
Clause [3c] of Section 211 of the Companies Act, 1956.
5. Based on the basis of the written representations made by all the
Directors of the company as on 31st March 2012 and taken on record by the
Board of Directors of the Company and in accordance with the information
and explanations as made available, the Directors of the company do not,
prima facie, have any disqualification as referred to in clause (g) sub-
section (1) to the Section 274 of the Companies Act, 1956.
6. Without qualifying attention is drawn to the following:
a. Note: C-5(c) regarding the financial statements of the Company having
been prepared on a going concern basis, the appropriateness of which is
interalia dependent on successful implementation of the scheme approved by
the Corporate Debt Restructuring Cell as also that in the opinion of the
management, no impairment provision is considered necessary.
7. In our opinion and to the best of our information and according to the
explanations given to us, the financial statements, together with the Notes
thereon and attached thereto give in the prescribed manner the information
required by the Companies Act, 1956 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 affair of the company
at 31st March 2012 and
b. In case of Profit & Loss account, of the profit for the year ended on
that date.
c. In case of Cash flow Statement, of the cash flows for the year ended on
that date.
For Ajay B Garg
Chartered Accountants
Place: Mumbai A Garg
Date : August 13, 2012 Mem-032538
Annexure referred to in paragraph 3 of the Auditors` Report to the members
of PBA Infrastructure Limited on the accounts for the year ended 31st March
2012.
1. In respect of Fixed Assets:
a. The Company has maintained proper records to show full particulars
including quantitative details and situation of the fixed assets on the
basis of information available.
b. As informed to us, during the year, majority of the fixed assets have
been physically verified by the management on the basis of phased programme
of verification of the assets over a reasonable time. Pursuant to the
program, a portion of the fixed assets has been physically verified by the
Management during the year, no material discrepancies were noticed between
the book records and the physical inventory for the same.
c. In our opinion and according to the information and explanations given
to us, the company has not disposed of substantial part of fixed assets
during the year and the going concern status of the Company is not
affected.
2. In respect of inventories:
a. As per information and explanation given to us, the management has
conducted physical verification of inventory at reasonable intervals during
the year.
b. Based on the information and explanation given to us and on the basis of
the management representation on which we have placed reliance, we are of
the opinion that the procedures of physical verification of inventory
followed by the management are reasonable and adequate in relation to the
size of the Company and its nature of business.
c. The company is maintaining proper records of inventory and as explained
to us, during the year, there were no material discrepancies noticed on
physical verification of inventory, as compared to the book records.
3. In respect of loans, secured or unsecured, granted or taken by the
Company to/from companies, firms or parties covered in the register
maintained under section 301 of the Companies Act, 1956:
a. The company has taken loans from 5 parties covered in the Register
maintained under section 301 of the Companies Act, 1956 aggregating to
Rs.1034.01 lakhs.
b. The Company has not granted loans to parties covered in the register
maintained under section 301.
c. In our opinion, the rate of interest and other terms and conditions on
which the loans has been obtained and or given from the parties listed in
register maintained under Sec. 301 of the Companies Act, 1956 are prima
facia not prejudicial to the interest of the Company.
d. The parties have repaid the Principal amounts as stipulated and have
been regular in Payment of interest.
e. There are no overdue amounts more than one lakhs.
4. In our opinion and as per the information and explanation given to us
there are adequate internal control procedure commensurate with the size of
the company and nature of its business with regards to purchases of new
materials, stores, plant and machinery equipment and other assets and for
sale of goods. During the course of our audit, we have not observed any
continuing failure to correct major weakness in internal control.
5. In respect of transactions covered under Section 301 of the Companies
Act, 1956:
a. In our opinion and according to the information and explanations given
to us, transactions that need to be entered into the Register in pursuance
of section 301 of the Companies Act, 1956 have been so entered.
b. So far we have been able to ascertain, the company has entered into
transactions for purchase of goods and materials and sale of goods,
materials and services in pursuance of contract or agreements entered in
the Register maintained under Sec. 301 of the Companies Act, 1956 as
aggregating during the year to Rs. 500,000/- or more in respect of each
party. These transactions have been made at prices which are reasonable
having regard to prevailing market prices available with the company for
such goods and services or the prices at the relevant time.
6. In respect of Fixed Deposits:
a. In our opinion and as per information and explanation given to us the
Company has complied with the provisions of Section 58A and 58AA of the
Companies Act, 1956 and the Companies (Acceptance of Deposits) Rule 1875,
with regards to the deposits accepted from the public.
7. In respect of internal audit systems:
a. In our opinion, the Company has an internal audit system commensurate
with the size and its nature of business.
8. To the best of our knowledge and according to information given to us,
the Central Government has not prescribed maintenance of cost records under
sec. 209(i)(d) of the Companies Act, 1956 in respect of any of the products
of the Company.
9. In respect of statutory dues:
a. According to the records of the company, the Company is generally
regular in depositing undisputed statutory dues including the Provident
Fund dues, ESIS dues, Income tax, MVAT, Sales tax and other statutory dues
applicable to it with the statutory authorities except following dues:
Name of Statute Nature of Dues Rs. (in Lakhs)
Income Tax Act Income tax Assessment dues 18.48
up to A.Y.2008-09
Income Tax Act Income tax assessment dues 34.59
of AY 2009-10
Income Tax Act & FBT FBT of AY 2009-10 6.57
(under rectification)
Maharashtra Sales Tax Works Contract Tax for 2.89
FY. 2004-05
b. The disputed statutory dues that have been not deposited on account of
matters pending before the appropriate Appellate Authorities are as under:
Name of Statute Assessment Year Rs. (in Lakhs) Appellate Authority
Income Tax Act A.Y.2004-05 16.73 CIT (Appeals)
Mumbai
Income Tax Act A.Y.2006-07 276.61 CIT (Appeals)
Mumbai
Income Tax Act A.Y.2007-08 96.34 CIT (Appeals)
Mumbai
Income Tax Act A.Y. 2008-09 545.33 CIT (Appeals)
Mumbai
10. The company has no accumulated losses at the end of the financial year
and it has not incurred any cash losses in the current and immediately
preceding financial year.
11. There have been defaults in repayment of dues to the banks during the
year, which have been subsequently rescheduled by way of Corporate debt
restructuring package (CDR). The Company has however defaulted in following
repayment of dues to Banks or Institutions(other than CDR):
a. Long term borrowing:
Sr. Name of Bank Default Default Total Continuing
No. Principal Interest Default Default
(Rs.) (Rs.) (Rs.)
1. Royal Bank 1,264,937 111,226 1,376,163 Jan.12 to
Scotland Mar.12
2. Mahindra & 2,295,058 149,765 2,444,823 Jan.12 to
Mahindra Mar.12
Financial
Services Ltd.
3. Larsen & Toubro 676,398 123,284 799,682 Feb.12 to
Finance Ltd. Mar.12
4. Larsen & Toubro 680,628 119,054 799,682 Feb.12 to
Finance Ltd. Mar.12
5. Tata Capital Ltd. 177,802 33,598 211,400 Mar.12
6. Tata Capital Ltd. 60,763 15,187 75,950 Mar.12
7. Citi bank N A 1,341,373 23,318 1,364,691 Jan.12 to
Mar.12
8. ICICI Bank Ltd. 230,917 37,647 268,564 Feb.12 to
Mar.12
9. ICICI Bank Ltd. 186,804 31,974 218,778 Feb.12 to
Mar.12
10. ICICI Bank Ltd. 263,742 54,354 318,096 Feb.12 to
Mar.12
11. ICICI Bank Ltd. 261,555 56,541 318,096 Feb.12 to
Mar.12
12. Sriram Finance 1,012,423 560,777 1,573,200 Feb.12 to
Pvt. Ltd. Mar.12
13. Srei Equipment 5,805,135 3,638,865 9,444,000 Jan.12 to
Finance Ltd. Mar.12
14. Srei Equipment 4,270,088 2,082,712 6,352,800 Jan.12 to
Finance Ltd. Mar.12
b. Short term Borrowing:
Sr. Name of Bank Period Amount of Default (Rs.)
No.
1. IDBI Bank Ltd. 01.04.11 TO 31.03.12 23,334,000
12. According to information and explanations given to us, and based on the
documents and records produced before us, the Company has not granted loans
and advances on the basis of security by way of pledge of shares,
debentures and other securities. Therefore the provisions of clause 4(xii)
of the Order are not applicable to the Company.
13. In our opinion and according to the information and explanations given
to us, the nature of activities of the Company does not attract any special
statute applicable to chit fund and nidhi/mutual benefit fund/societies.
Therefore the provisions of clause 4(xiii) of the Order are not applicable
to the Company.
14. In our opinion the company is not dealing in or trading in shares,
securities, debentures and other investments. Therefore the provisions of
clause 4(xiv) Order are not applicable to the Company.
15. Based on our audit procedures and according to information and
explanations given to us the company has not given guarantees for loans
taken by others from a Bank or financial institution.
16. According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, and on the basis
of the management representation on which we have placed reliance, the term
loans have been applied for the purpose for which they were raised.
17. According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, and on the basis
of the management representation on which we have placed reliance, we are
of the opinion that no funds raised on short term basis have been used for
long term assets.
18. During the year, the Company has not made any preferential allotment of
shares to parties and companies covered in the register maintained under
section 301 of the Companies Act, 1956.
19. The Company has not raised any monies by way of issue of debentures.
20. During the year the company has not raised any money by public issue
and accordingly the provisions of clause 4 (xx) of the Companies (Auditor`s
Report) order, 2003 are not applicable to the Company.
21. In our opinion and according to the information and explanations given
to us, no fraud on or by the Company has been noticed or reported during
the year that causes the financial statements to be materially misstated.
For Ajay B Garg
Chartered Accountants
Place: Mumbai A Garg
Date : August 13, 2012 Mem-032538 |