Afcon Book.indd - Afcons Infrastructure Ltd.

CONSOLIDATED FINANCIAL STATEMENT OF AFCONS INFRASTRUCTURE LIMITED AND ITS SUBSIDIARIES,ASSOCIATED AND JOINT VENTURES (AFCONS GROUP)AUDITORS’ REPORT TO THE BOARD OF DIRECTORS OF AFCONS INFRASTRUCTURE LIMITED1. We have audited the attached Consolidated Balance Sheet of AFCONS INFRASTRUCTURE LIMITED (“the Company”), its subsidiariesand jointly controlled entities (the Company, its subsidiaries and jointly controlled entities constitute “the Group”) as at 31st March, 2010,the Consolidated Profit and Loss Account and the Consolidated Cash Flow Statement of the Group for the year ended on that date, bothannexed thereto. The Consolidated Financial Statements include investments in associates accounted on the equity method in accordancewith Accounting Standard 23 (Accounting for Investments in Associates in Consolidated Financial Statements) and the jointly controlledentities accounted in accordance with Accounting Standard 27 (Financial Reporting of Interests in Joint Ventures) as notified under theCompanies (Accounting Standards) Rules, 2006. These financial statements are the responsibility of the Company’s Management and havebeen prepared on the basis of the separate financial statements and other financial information regarding components. Our responsibility isto express an opinion on these Consolidated 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 andperform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. An audit includesexamining, on a test basis, evidence supporting the amounts and the disclosures in the financial statements. An audit also includes assessingthe accounting principles used and the significant estimates made by the Management, as well as evaluating the overall financial statementpresentation. We believe that our audit provides a reasonable basis for our opinion.3. We did not jointly audit the financial statements of certain subsidiaries and joint ventures, whose financial statements reflect total assets ofRs. 49,839.48 Lacs., as at 31st March, 2010, total revenues of Rs. 81,229.47 Lacs. and net cash flows amounting to Rs. 8,219.47 Lacs. for theyear ended on that date as considered in the Consolidated Financial Statements. These financial statements have been audited by either ofus in our individual capacity or by other auditors, whose reports have been furnished to us and our opinion in so far as it relates to the amountsincluded in respect of subsidiaries, associates and joint ventures is based solely on the reports of the respective auditors.4. We report that the Consolidated Financial Statements have been prepared by the Company in accordance with the requirements ofAccounting Standard 21 (Consolidated Financial Statements), Accounting Standard 23 (Accounting for Investment in Associates inConsolidated Financial Statements) and Accounting Standard 27 (Financial Reporting of Interests in Joint Ventures) as notified under theCompanies (Accounting Standards) Rules, 2006.5. Our audit report of previous year was modified for:(i) non-provision for probable non-recovery of dues from a Partnership firm;(ii) non-provision for unbilled revenue;(iii) the manner of accounting for outstanding arbitration awards and interest accrued thereon; and(iv) non-provision for certain debts and advances.The matters in respect of items (i) to (iii) above have been resolved during the year as, based on the information and explanations providedto us that the arbitration awards are concluded unanimously in favor of the Company and that the counter parties have not produced newevidence in the Court of Law when going for appeal against the Arbitration awards and that there have been receipts of significant amountof claims during the current year as well as in the previous years, we are of the opinion that in the recognition of revenue in such cases nosignificant uncertainties exist regarding its measurement and collectibility.The matter in respect of item (iv) above has been resolved during the year as the Company has made adequate provision for doubtful debtsand advances.6. Based on our audit and on consideration of the separate audit reports on individual financial statements of the aforesaid subsidiaries, jointventures and associates, and to the best of our information and according to the explanations given to us, in our opinion, the ConsolidatedFinancial Statements give a true and fair view in conformity with the accounting principles generally accepted in India:(i) in the case of the Consolidated Balance Sheet, of the state of affairs of the Group as at 31st March, 2010;(ii) in the case of the Consolidated Profit and Loss Account, of the profit of the Group for the year ended on that date; and(iii) in the case of the Consolidated Cash Flow Statement, of the cash flows of the Group for the year ended on that date.For Deloitte Haskins & SellsChartered Accountants(Registration No.117366W)R. Laxminarayan J.C. BhattPartnerChartered AccountantMembership No. 33023(Registration No. Not Applicable)Membership No. 10977Place : Mumabi,Date : 17 th June, 201099