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Adani Ports & Special Economic Zone Ltd.

BSE: 532921 Sector: Others
NSE: ADANIPORTS ISIN Code: INE742F01042
BSE 15:55 | 27 Mar 2018 Adani Ports & Special Economic Zone Ltd
NSE 05:30 | 01 Jan 1970 Adani Ports & Special Economic Zone Ltd
OPEN 367.10
PREVIOUS CLOSE 364.90
VOLUME 128338
52-Week high 451.55
52-Week low 291.75
P/E 27.91
Mkt Cap.(Rs cr) 75,662
Buy Price 0.00
Buy Qty 0.00
Sell Price 365.35
Sell Qty 816.00
OPEN 367.10
CLOSE 364.90
VOLUME 128338
52-Week high 451.55
52-Week low 291.75
P/E 27.91
Mkt Cap.(Rs cr) 75,662
Buy Price 0.00
Buy Qty 0.00
Sell Price 365.35
Sell Qty 816.00

Adani Ports & Special Economic Zone Ltd. (ADANIPORTS) - Auditors Report

Company auditors report

To

The Members of

Adani Ports and Special Economic Zone Limited

Report on the Financial Statements

We have audited the accompanying standalone financial statements of Adani Ports andSpecial Economic Zone Limited (“the Company”) which comprise the Balance Sheetas at March 31 2015 the Statement of Profit and Loss and Cash Flow Statement for theyear then ended and a summary of significant accounting policies and other explanatoryinformation.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 (“the Act”) with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance withaccounting principles generally accepted in India including the Accounting Standardsspecified under section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014.

This responsibility includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding of the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and the design implementation and maintenance of adequate internal financialcontrol that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit. We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder. We conducted our audit inaccordance with the Standards on Auditing issued by the Institute of Chartered Accountantsof India as specified under Section 143(10) of the Act. Those Standards require that wecomply with ethical requirements and plan and perform the audit to obtain reasonableassurance about whether the financial statements are free from material misstatement. Anaudit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements.

The procedures selected depend on the auditor's judgment including the assessment ofthe risks of material misstatement of the financial statements whether due to fraud orerror. In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the financial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstancesbut not for the purpose of expressing an opinion on whether the Company has in place anadequate internal financial controls system over financial reporting and the effectivenessof such controls.

An audit also includes evaluating the appropriateness of accounting policies used andthe reasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall presentation of the financial statements. We believe that the auditevidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion on the standalone financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2015 of its profit and its cash flows for the year ended on that date.

Emphasis of Matter

(i) We draw attention to Note 40 of the financial statements regarding the basis ofrecognition of project service revenue for the year ended March 31 2015 as more fullydescribed in the said note.

(ii) We draw attention to Note 37(o) of the financial statements regarding therecognition of Minimum Alternate Tax ('MAT') Credit Entitlement in respect of certaininterest income based on the consideration that the Company would be able to claim taxbenefit on the same as per provision of section 80IAB of the Income Tax Act 1961 morefully described in the said note.

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 ofthe Act we give in the Annexure 1 a statement on the matters specified in paragraphs 3and 4 of the Order.

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 bestof 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 theCompany so far as it appears from our examination of those books;

(c) The Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account;

(d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014;

(e) On the basis of written representations received from the directors as on March 312015 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2015 from being appointed as a director in terms of section 164 (2) ofthe Act;

(f) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand 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 financialposition in its financial statements Refer Note 37 to the financial statements;

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts includingderivative contracts Refer Note 8 to the financial statements;

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

For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E
per Arpit K Patel
Place of signature : Ahmedabad Partner
Date : May 1 2015 Membership Number: 34032

Annexure referred to in paragraph 1 on other legal and regulatory requirement of ourreport of even date

Re: Adani Ports and Special Economic Zone Limited ('the Company')

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

(b) The Company has regular programme of physical verification of its fixed assetsthrough which all the fixed assets are verified in a phased manner over a period of threeyears. In our opinion physical verification is reasonable having regard to the size ofthe Company and the nature of its assets. No material discrepancies were noticed on suchverification.

(ii) (a) The inventory of stores and spares fuel and lubricants has been physicallyverified by the management during the year. In our opinion the frequency of such physicalverification is reasonable.

(b) The procedures of physical verification of inventory followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

(c) The Company is maintaining proper records of inventory and no materialdiscrepancies were noticed on physical verification.

(iii) (a) The Company has granted loans to fourteen companies covered in the registermaintained under section 189 of the Companies Act 2013. In respect of loans grantedrepayment of the principal amount is as stipulated and payment of interest has beenregular.

(b) There is no overdue amount of loans granted to companies firms or other partieslisted in the register maintained under section 189 of the Companies Act 2013.

(iv) Part of the Company's purchases of fixed assets and sale of services are stated tobe of unique and specialized nature and hence in such cases the comparison of priceswith the market rates or with purchases from/sales to other parties cannot be made. Readwith the above in our opinion and according to the information and explanations given tous there is an adequate internal control system commensurate with the size of the Companyand the nature of its business for the purchase of inventory and fixed assets and for thesale of services. The activities of the Company do not involve sale of goods. During thecourse of our audit we have not observed any major weakness or continuing failure tocorrect major weakness in internal control system of the company in respect of theseareas.

(v) The Company has not accepted any deposits from the public.

(vi) To the best of our knowledge and as explained the Central Government has notspecified the maintenance of cost records under clause 148(1) of the Companies Act 2013for the services of the Company.

(vii) (a) The Company is regular in depositing with appropriate authorities undisputedstatutory dues including provident fund employees' state insurance income-tax salestax wealth tax service tax customs duty excise duty value added taxes cess and othermaterial statutory dues applicable to it.

(b) According to the information and explanations given to us no undisputed amountspayable in respect of provident fund investor education and protection fund employees'state insurance income tax wealth tax service tax sales tax customs duty excise dutyand other undisputed statutory dues were outstanding at the year end for a period ofmore than six months from the date they became payable.

(c) According to the information and explanation given to us the dues outstanding ofservice tax customs duty excise duty and income tax on account of any dispute are asfollows:

Name of the statute Nature of Tax Amount (Rs in Crores) Period to which the amount relates Forum where dispute is pending
Customs Act 1962 Custom Duty 2.00 June 2008 Commissioner of Customs and Central Excise Ahmedabad
Custom Duty 0.14 July 2003 Assistant Commissioner of Customs
Mundra
Custom Duty 0.25 August 2007 Deputy Commissioner of Customs
Mundra
Cost recovery 6.16 FY 2013-14 & Commissioner of Customs
charges 2014-15 Mundra
Finance Service Tax 6.72 December 2004 to High Court of Gujarat
Act 1994 March 2006
Service Tax 0.56 October 2003 to Commissioner (Appeals) Rajkot
August 2005
Service Tax 42.51 April 2006 to Customs Excise and Service Tax
March 2008 Appellate Tribunal Ahmedabad
Service Tax 66.96 October 2007 to Customs Excise and Service Tax
September 2008 Appellate Tribunal Ahmedabad
Service Tax 77.54 October 2008 to Customs Excise and Service Tax
September 2009 Appellate Tribunal Ahmedabad
Service Tax 0.61 September 2009 to Commissioner of Service Tax
March 2010 Ahmedabad
Service Tax 116.84 October 2009 to Customs Excise and Service Tax
September 2011 Appellate Tribunal Ahmedabad
Service Tax 0.87 April 2011 to Customs Excise and Service Tax
September 2011 Appellate Tribunal Ahmedabad
Service Tax 30.64 April 2011 to Commissioner of Service Tax
March 2012 Ahmedabad
Service Tax 23.36 April 2012 to Commissioner / Addl. Commissioner
September 2012 of Service Tax Ahmedabad
Service Tax 28.35 October 2012 to Commissioner / Joint Commissioner
March 2013 of Service Tax Ahmedabad
Finance Service Tax 6.72 April 2004 to High Court of Gujarat
Act 1994 August 2009
Service Tax 0.15 April 2009 to Commissioner of Service Tax
March 2010 Ahmedabad
Service Tax 0.02 2010-11 Commissioner of Service Tax
Ahmedabad
Income Tax Income Tax 10.15 AY 2009-10 Income Tax Appellate Tribunal
Act 1961 Income Tax 1.67 AY 2010-11
Income Tax 47.59 AY 2011-12

(d) According to the information and explanations given to us the amount required tobe transferred to investor education and protection fund in accordance with the relevantprovisions of the Companies Act 1956 (1 of 1956) and rules made thereunder has beentransferred to such fund within time.

(viii) The Company has no accumulated losses at the end of the financial year and ithas not incurred cash losses in the current and immediately preceding financial year.

(ix) Based on our audit procedures and as per the information and explanations given bythe management we are of the opinion that the Company has not defaulted in repayment ofdues to a financial institution banks or debenture holders.

(x) According to the information and explanations given to us the Company has givenguarantees for loans taken by others from banks the terms and conditions whereof in ouropinion are not prima-facie prejudicial to the interest of the Company.

(xi) Based on information and explanations given to us by the management term loanswere applied for the purpose for which the loans were obtained though idle/ surplus fundswhich were not required for immediate utilization have been invested in Fixed Deposits andInter Corporate Deposits.

(xii) Based upon the audit procedures performed for the purpose of reporting the trueand fair view of the financial statements and as per the information and explanationsgiven by the management we report that no fraud on or by the Company has been noticed orreported during the year.

For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E
per Arpit K Patel
Place of Signature : Ahmedabad Partner
Date : May 1 2015 Membership Number: 34032