Mar 31, 2023
R.P.P INFRA PROJECTS LIMITED
Basis for Opinion
Report on the Audit of the Standalone Financial Statements
I have audited the accompanying standalone financial statements of R.P.P INFRA PROJECTS LIMITED ("the Company"), which comprise the Balance sheet as at 31st March 2023, and the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year then ended, and a summary of significant accounting policies and other explanatory information, which includes two branches and Twelve jointly controlled operations
In my opinion and to the best of my information and according to the explanations given to me, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023, the profit and total comprehensive income, changes in equity and it''s cash flows for the year ended on that date.
I conducted my audit in accordance with the Standards on Auditing ("SA"s) specified under section 143(10) of the Companies Act, 2013. My responsibilities under those Standards are further described in the Auditor''s responsibilities for the Audit of the Financial Statements section of my report.
I am independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to my audit of the financial statements under the provisions of the Companies Act, 2013 and the Rules made there under, and I have fulfilled my other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. I believe that the audit evidence obtained by me is sufficient and appropriate to provide a basis for my opinion on the standalone financial statements.
Key audit matters are those matters that, in my professional judgment, were of most significance in my audit of the standalone financial statements of the current period. These matters were addressed in the context of my audit of the standalone financial statements as a whole, and in forming my opinion thereon, and I do not provide a separate opinion on these matters.
I have determined the matters described below to be the key audit matters to be communicated in my report.
S. No Key Audit Matter |
Auditor''s Response |
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1. Revenue recognition in accordance with Ind AS 115 |
My audit procedures on revenue recognized from fixed price |
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"Revenue from Contracts with Customers" |
development contracts include |
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The Company inter alia engages in Fixed-price development |
⢠Understanding of the systems, processes and controls |
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contracts, where, revenue is recognized using the percentage |
implemented by management for recording and calculating |
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of completion computed as per the input method based on |
revenue and work-in-progress/Contract Assets. |
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management''s estimate of contract costs. (Refer Notes No. 27 |
⢠On |
selected samples of contracts, I tested that the revenue |
to the Standalone Financial Statements) |
recognized is in accordance with the accounting standard by - |
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I identified revenue recognition of fixed price development contracts as a KAM considering - ⢠There is an inherent risk around the accuracy of revenues given, the customised and flexible nature of these contracts in terms of tenure of the projects. |
> > |
Evaluating the performance obligation; Testing management''s calculation of the estimation of contract cost and onerous obligation, if any. I : |
? Tbserved that the estimates of cost to complete |
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were reviewed and approved by appropriate levels of |
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⢠Application of revenue recognition accounting standard |
management; |
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is complex and involves a number of key judgments and estimates including estimating the future cost-to-completion of these contracts, which is used to determine the percentage of completion of the relevant performance obligation; |
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? Terformed a retrospective review of costs incurred with estimated costs to identify significant variations and verify whether those variations have been considered in estimating the remaining costs to complete the contract; and |
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⢠These contracts may involve onerous obligations on the |
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Company that require critical estimates to be made by |
? Tssessed the appropriateness of work in progress |
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management; and |
(contract assets) in balance sheet by evaluating the underlying documentation to identify possible delays |
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⢠At year-end a significant amount of work in progress |
in achieving milestones which may require change in |
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(Contract assets and liabilities) related to these contracts |
estimated costs to complete the remaining performance |
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is recognised in the balance sheet. |
obligations. |
S. No |
Key Audit Matter |
Auditor''s Response |
2 |
Measurement of contract assets in respect of overdue milestones and receivables in respect of overdue invoices The Company, in its contract with customers, promises to transfer distinct services to its customers, which may be rendered in the form of engineering, procurement, and construction (EPC) services through design-build contracts, and other forms of construction contracts. The recognition of revenue is based on contractual terms, which could be based on agreed unit price or lump-sum revenue arrangements. At each reporting date, revenue is accrued for costs incurred against work performed that may not have been invoiced. Identifying whether the Company''s performance has resulted in a service that would be billable and collectable where the works carried out have not been acknowledged by customers as of the reporting date, involves a significant amount ofjudgment. Assessing the recoverability of contract assets related to overdue milestones and amounts overdue against invoices raised which have remained unsettled for a significantly long period after the end of the contractual credit period also involves a significant amount of judgment. Refer to Note No. 2.14(i) and Note No.27of the standalone financial statements |
The procedures performed included the following: ⢠obtained an understanding of the Company''s processes in collating the evidence supporting execution of work for each disaggregated type of revenue; ⢠obtained an understanding of the Company''s processes in assessing the recoverability of amounts overdue and process over estimating the expected credit loss allowance; ⢠tested the design and operating effectiveness of the key controls over the completeness and accuracy of the key inputs and assumptions into the provisioning model; ⢠evaluated controls over authorisation and calculation of provisioning model; ⢠evaluated the delivery and collection history of customers against whose contracts un-invoiced revenue is recognised; ⢠verified for the sample selected, receipts post balance sheet date upto the approval of the financial statements by the Board of Directors of the Parent Company; ⢠performed an overall assessment of the expected credit loss provision to determine if they were reasonable considering the Company''s portfolio, risk profile, credit risk management practices and the macroeconomic environment; and ⢠tested the appropriateness of the disclosures in the financial statements to ensure compliance with Ind AS 115 |
3 |
Claims and exposures relating to taxation and litigation The Group is subject to a considerable number of tax and legal disputes, which have been disclosed / provided for in the financial statements based on the facts and circumstances of each case. Taxation and litigation exposures have been identified as a key audit matter due to the complexities involved in these matters, timescales involved for resolution and the potential financial impact of these on the financial statements. Further, significant management judgement is involved in assessing the exposure of each case and thus a risk that such cases may not be adequately provided for or disclosed. (Refer Note No. 40, Note no. 12.1) |
My audit procedures included the following: ⢠Gained an understanding of the process of identification of claims, litigations and contingent liabilities and identified key controls in the process. ⢠For selected controls I have performed tests of controls. ⢠Obtained the summary of Group''s legal and tax cases and critically assessed management''s position through discussions with the Legal Counsel, on both the probability of success in significant cases, and the magnitude of any potential loss. ⢠Examined external legal opinions (where considered necessary) and other evidence to corroborate management''s assessment of the risk profile in respect of legal claims. ⢠Assessed the relevant disclosures made within the financial statements to address whether they reflect the facts and circumstances of the respective tax and legal exposures and the requirements of relevant accounting standards. ⢠Assessed the competence and objectivity of the Group''s experts, to satisfy ourselves that these parties are suitable in their roles. |
I have determined that there are no other Key Audit Matters to communicate in my report.
The Company''s management and Board of Directors are responsible for the other information. The other information comprises the information included in the Company''s annual report, but does not include the standalone financial statements and my auditors'' report thereon.
My opinion on the standalone financial statements does not cover the other information and I do not express any form of assurance conclusion thereon.
In connection with my audit of the standalone financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or my knowledge obtained in the audit or otherwise appears to be materially misstated. Based on the work I have performed, I have nothing to report in this regard.
The Company''s Management and Board of Directors are 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, (changes in equity) and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Ind AS specified under section 133 of the Act.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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 statement that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Company''s financial reporting process.
My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor''s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with SAs, I exercise professional judgment and maintain professional scepticism throughout the audit. I also:
⢠I dentify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal financial control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3X0 of the Act, I am also responsible for expressing my opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the management and Board of Directors.
⢠Conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor''s report to the related disclosures in the standalone financial statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my audit report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the standalone financial statements, including the disclosures, and whether the standalone financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
⢠Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced. I consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements
I communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.
I also provide those charged with governance with a statement that I have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships
and other matters that may reasonably be thought to bear on my independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, I determine those matters that were of most significance in the audit of the standalone financial statements of the current period and are therefore the key audit matters.
I describe these matters in my auditors'' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, I determine that a matter should not be communicated in my report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
I did not audit the financial statements of Two branches and twelve jointly controlled operations included in the standalone financial results of the Company, whose results reflect total assets of Rs. 123.90 Crore as at 31st March, 2023 and total revenues of Rs. 395.95 Crore and Rs.(1.56) Crore, net profit/(Loss) after tax and total comprehensive income of Rs. Nil for the year ended March 31st 2023, respectively and net cash flows amounting to Rs.12.86 Crore for the year then ended. These branch financial statements have been audited by other Auditors whose reports and these JV''s financial statements have been audited by other Auditors whose reports have been furnished to me by the Management and my opinion on the standalone financial results, in so far as it relates to the amounts and disclosures included in respect of these entities, is based solely on the report of such auditors and the procedures performed by me are as stated in paragraph above. The RPP HSEA JV, RPP INFRASTRUCTURE JV, RPP OPG JV though incorporated, business is yet to commence.
My opinion is not modified in respect of this matter.
I invite attention to:
(a) Note No.40 which lists out the status of Income Tax Assessments of various years and also the year wise status of various notices received from Goods & Service Tax.
(b) Note No.40 where the Company has declared that the reconciliation of Input Tax Credit & GSTR 2A is under progress
(c) Note No.17 & 18 where the Company has declared that they have initiated a rectification process to resolve the difference between Paid up Share capital appearing in the books and MCA portal
My Opinion is not modified in respect of this matter.
1. As required by the Companies (Auditor''s Report) Order, 2016 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies
Act, 2013, I give in the Annexure -B a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. (A) As required by Section 143(3) of the Act, I report that:
(a) I have sought and obtained all the information and explanations which to the best of my knowledge and belief were necessary for the purposes of my audit.
(b) In my opinion, proper books of account as required by law have been kept by the Company so far as it appears from my examination of those books.
(c) The reports and accounts of the branch offices situated in Sri Lanka and Bangladesh have not been audited by me and I have not received any audit report for the same.
(d) The Standalone Balance Sheet, the Standalone Statement of Profit and Loss (Including other Comprehensive income), the standalone statement of changes in Equity and the Standalone Cash Flow Statement dealt with by this Report are in agreement with the books of accounts.
(e) I n my opinion, 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.
(f) On the basis of the written representations received from the directors as on 31st March, 2023 taken on record by the Board of Directors, none of the directors are disqualified as on 31st March, 2023 from being appointed as a director in terms of Section 164 (2) of the Act.
(g) 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 my separate Report in "Annexure B".
(h) I n my opinion and to the best of my information and according to the explanations given to me, the remuneration paid by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act.
(B) 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 my opinion and to the best of my information and according to the explanations given to me:
i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note No.40 to the financial statements.
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
iii. There has been a delay in transferring the amount of unclaimed dividend to the Investor Education and Protection Fund.
iv. (a) The Management has represented that, to
the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entity ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(b) The Management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;
(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement
For CA S.N. Duraiswamy
Membership No.: 026599 UDIN: 23026599BGQHXQ5909
Place: Erode Date: 29 May 2023
Mar 31, 2018
Report on the Standalone Ind AS financial statements
We have audited the accompanying standalone Ind AS financial statements of M/S. R.P.P. INFRA PROJECTS LIMITED ("the company"), which comprise the Balance Sheet as at 31 March, 2018, the Statement of Profit and Loss including the statement of Other Comprehensive income, the Cash Flow Statement, the statement of changes in equity and a summary of the significant accounting policies and other explanatory information for the year then ended which includes two branches ("standalone Ind AS financial statements").
Management''s Responsibility for the Standalone Ind AS 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 Ind AS financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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; 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 Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either Intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Auditors'' Responsibility
Our responsibility is to express an opinion on these standalone Ind AS 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 issued by the Institute of Chartered Accountants of India as 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 the 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 but not for the purpose of expressing an opinion on the effectiveness of the entity''s internal control. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the standalone Ind AS financial statements.
We are also responsible to conclude on the appropriateness of management''s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity''s ability to continue as a going concern. If we conclude that a material uncertainty exists we are required to draw attention in the auditor''s report to the related disclosures in the financial statements or if such disclosures are inadequate, to modify the opinion. Our conclusions are based on the audit evidence obtained up to the date of the auditor''s report. However, future events or conditions may cause an entity to cease to continue as a going concern. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, except the financial statements of Srilanka and Bangladesh branches not audited by us, the aforesaid standalone Ind AS 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, of the state of affairs of the Company as at 31 March 2018, of its profit including other comprehensive income, its cash flows and changes in equity for the year ended on that date.
Other Matter
We did not audit the financial statements of two branches included in the standalone quarterly financial results and year to date results, whose standalone financial statements reflect total assets of '' 22.57 crore as at 31 March 2018, total revenue of '' 8.27 crore as at 31 March 2018 and total profit after tax of '' 0.24 crore, whose unaudited financial statements and other unaudited information have been furnished to us. Our opinion on the statements, in so far as it relates to the amounts and disclosures included in respect of the two branches and our report in terms of subsection (3) and (11) of section 143 of the Act in so far as it relates to the aforesaid branches is based solely on such unaudited financial statements and other unaudited financial information. Our opinion is not modified in respect of this matter.
Attention is invited to Note No: 32 regarding disclosure on search operation conducted on the Company during March 2016. Our opinion is not modified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 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 paragraph 3 and 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 best of our knowledge and belief were necessary for the purposes of our audit.
(b) We have not audited the branch offices situated in Srilanka and Bangladesh. We have not received any audit report for the same.
(c) 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.
(d) 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 accounts.
(e) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(f) On the basis of the written representations received from the directors as on 31 March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2018 from being appointed as a director in terms of Section 164 (2) of the Act.
(g) 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''
(h) 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:
a. The company has disclosed the impact of pending litigations on its financial position in its standalone Ind AS financial statements. Refer to Note no. 10.1 - to the standalone Ind AS financial statements.
b. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.
c. There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Company.
d. Disclosures in the financial statements regarding holdings as well as dealings in Specified Bank Notes during the period 8th November 2016 to 30th December 2016 have not been made since they do not pertain to financial year ended 31-03-2018. However, amounts as appearing in Audited Ind AS financial statements as on 31-03-2017 have been disclosed.
The Annexure referred to in Independent Auditors'' Report to the members of the Company on the standalone Ind AS financial statements for the year ended 31 March 2018.
According to information and explanations given to us, we report that:
1. a) The company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
b) The fixed assets have been physically verified by the management during the year which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.
c) The title deeds of all the immovable properties of the Company shown under the Fixed Assets schedule are held in the name of Company.
2. The inventories have been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable and no discrepancies were noticed at the time of verification.
3. The Company has granted no loans, secured or unsecured to companies, firms, LLP or other parties covered in the registered maintained under Section 189 of the Companies Act, 2013 other than to its subsidiaries viz., R.P.P. Infra Overseas Plc, Sanskar Dealcom Private Limited and Greatful Mercantile Private Limited as mentioned below:
(a) The terms and conditions of the grant of such loans are not prejudicial to the Company''s interest.
(b) The payment of interest and repayment of principal are as per the terms and conditions stipulated.
(c) There is no amount overdue on such loans on the year end as at 31-03-2018.
4. I n our opinion and according to explanations given to us, the company has complied with the provisions of the sections 185 and 186 of the Act in respect of grant of loans, advances etc.
5. The company has not accepted any deposits to which the provisions of Sec. 73 to 76 or any other relevant provisions of the Act and the rules framed there under and the directions issued by the RBI are applicable. Hence this clause is not applicable and not commented upon.
6. We have broadly reviewed the books of account maintained by the company pursuant to the Rules made by the Central Government for the maintenance of cost records u/s 148 of the Act, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
7. a) Undisputed statutory dues including PF, ESI, income-tax, sales-tax, service tax, duty of custom, duty of excise, VAT, cess have generally been regularly deposited with the appropriate authorities though there had been delay in few cases.
b) The service tax liability has become payable and not cleared since July'' 2017 amounts to Rs. 57.96 lakh. There is another liability for Reverse Charge Mechanism under Goods and Service Tax which is outstanding since July'' 2017 for Rs.62.62 lakh. Other than this, no other statutory liability has been undisputed and unpaid for more than six months preceding the end of the financial year on 31-03-2018. The Company pays GST to the extent it receives from the customers. Filing returns for the period is under process.
c) The particulars of Income tax, Service Tax which have not been deposited on account of any dispute are as follows:
Name of Statute |
Nature of the due |
Amount in Rs. |
Period to which the Forum where the amount relates dispute is pending |
|
Income Tax Act |
Income Tax |
14,668 |
2005-06 |
Assistant Commissioner of Income Tax,Circle-I,Erode |
Income Tax Act |
Income Tax |
24,14,650 |
2005-06 |
Assistant Commissioner of Income Tax,Circle-I,Erode |
Income Tax Act |
Income Tax |
8,268 |
2007-08 |
Assistant Commissioner of Income Tax,Circle-I,Erode |
Income Tax Act |
Income Tax |
2,546 |
2008-09 |
Assistant Commissioner of Income Tax,Circle-I,Erode |
Income Tax Act |
Income Tax |
67,33,908 |
2008-09 |
Assistant Commissioner of Income Tax,Circle-I,Erode |
Income Tax Act |
Income Tax |
1,83,06,420 |
2009-10 |
Income Tax Appellate Tribunal ,Chennai |
Income Tax Act |
Income Tax |
1,31,52,200 |
2009-10 |
Commissioner of Income Tax, Coimbatore |
Income Tax Act |
Income Tax |
1,78,88,460 |
2011-12 |
Commissioner of Income Tax, Coimbatore |
Income Tax Act |
Income Tax |
1,42,02,440 |
2012-13 |
Assistant Commissioner of Income Tax,Circle-I,Erode |
Income Tax Act |
Income Tax |
29,66,600 |
2013-14 |
Income Tax Department-CPC |
Service Tax Act |
Service Tax |
2.52 crore |
2004-09 |
Commissioner of Central excise dept |
Service Tax Act |
Service Tax |
0.63 crore |
2010 |
Commissioner of Central excise dept |
Service Tax Act |
Service Tax |
1.87 crore |
2010-11 |
Commissioner of Central excise dept |
Service Tax Act |
Service Tax |
3.44 crore |
2012 |
Commissioner of Central excise dept |
Service Tax Act |
Service Tax |
2.18 crore |
2012-13 |
Commissioner of Central excise dept |
The Company pays GST to the extent it receives from the customers. Filing returns for the period is under
As per the Income tax portal, a sum of Rs.0.32 crore is shown as due from the company towards TDS dues. However the company has cleared the entire due on 31-03-2018 and is awaiting the revision in the portal.
8. Based on our audit procedures, we are of the opinion that the company has not defaulted in repayment of dues to its bank, financial institution, and to the Government for the year ended 31-03-2018. There are no Debenture holders for the Company.
9. No monies were raised through initial public offer during the year. The monies raised through term loans were applied for the purpose for which they have been raised.
10. Based upon the audit procedures performed, we report that no fraud by the company and no fraud on the Company by its officers / employees has been noticed or reported during the course of our audit.
11. The Managerial Remuneration has been paid / provided in accordance with the requisite approvals mandated by Sec. 197 read with Schedule V to the Act.
12. The Company is not a Nidhi Co. and therefore clause 3(12) of the Order is not applicable to the Company and we do not comment upon this provision.
13. In our opinion, all the Related Party Transactions entered into by the Company during the year are in compliance with the provisions Sec. 188 & 177 of the Act and the details thereof have been disclosed in the Financial Statements as required by the Accounting standards and the Act.
14. The Company has not made any preferential allotment / private placement of shares during the year and therefore this clause is not applicable to the Company.
15. The Company has not entered into any non-cash transactions with directors / persons connected with him as stipulated u/s. 192 of the Act. Clause 3(15) of the Order is therefore not applicable to the Company.
16. In our opinion, the Company is not required to be registered u/s 45-IA of the Reserve Bank of India Act, 1934.
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 M/s. R.P.P. Infra Projects Limited as of 31 March 2018 in conjunction with our audit of the standalone Ind AS 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 ofInternal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. 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 on Audit of Internal Financial Controls Over Financial Reporting (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 judgement, 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, except relating to the branches in Srilanka and Bangladesh.
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 authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised 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, to the best of the information and explanations given to us, except relating to the branches in Srilanka and Bangladesh for which we have neither audited nor received an Independent Auditor''s report on the same, 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 31 March 2018 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 issued by the Institute of Chartered Accountants of India.
For SUNDARAM & NARAYANAN
Chartered Accountants
Firm Reg. No: 004204S
CA .P.KAILASAM
Place: Erode Partner
Date: 12-05-2018 Membership No: 222363
Mar 31, 2016
To
The Members of
M/s. RPP INFRA PROJECTS LIMITED Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of M/s. RPP Infra Projects Limited, which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of the 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 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, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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.
Auditors'' 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 the 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 the 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.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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, of the state of affairs of the Company as at 31st March, 2016, and its profit/loss and its 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) Order, 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 paragraph 3 and 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 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, 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 31st March, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016 from being appointed as a director in terms of Section 164 (2) of the Act.
(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 Bâ.
(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. or the Company does not have any pending litigations which would impact its financial position
ii. the Company did 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.
1. a) The company has maintained proper records
The Annexure referred to in Independent Auditors'' Report to the members of the Company on the standalone financial statements for the year ended 31st March 2016, we report that:
showing full particulars including quantitative details and situation of fixed assets.
b) The fixed assets have been physically verified by the management during the year which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.
c) The title deeds of all the immovable properties of the Company shown under the Fixed Assets schedule are held in the name of Company.
2. The inventories have been physically verified by the management at reasonable intervals during the year. In our opinion, the frequency of such verification is reasonable and no discrepancies were noticed at the time of verification.
3. a) The company has not granted loans, secured or unsecured, to companies, firms, LLP''s or other parties covered in the register maintained U/s. 189 of the Act.
b) & c) Not applicable since, the company has not granted any loans to the parties covered in the register maintained U/s. 189 of the Act.
4. The company has not given any loans / investments / guarantees to which the provisions of Sec. 186 of the Act apply.
Name of Statute |
Nature of the dues |
Amount in Rs. |
Period to which the amount relates |
Forum where the dispute is pending |
Income Tax Act |
Income Tax |
24,29,318 |
2005-06 |
Assistant Commissioner of Income Tax,Circle-I,Erode |
Income Tax Act |
Income Tax |
7,05,443 |
2006-07 |
Assistant Commissioner of Income Tax,Circle-I,Erode |
Income Tax Act |
Income Tax |
8,268 |
2007-08 |
Assistant Commissioner of Income Tax,Circle-I,Erode |
Income Tax Act |
Income Tax |
91,22,896 |
2008-09 |
Assistant Commissioner of Income Tax,Circle-I,Erode |
Income Tax Act |
Income Tax |
1,83,06,420 |
2009-10 |
Income Tax Appellate Tribunal ,Chennai |
Income Tax Act |
Income Tax |
1,31,52,700 |
2010-11 |
Commissioner of Income Tax, Coimbatore |
5. The company has not accepted any deposits to which the provisions of Sec. 73 to 76 or any other relevant provisions of the Act and the rules framed there under and the directions issued by the RBI are applicable. Hence this clause is not applicable.
6. We have broadly reviewed the books of account maintained by the company pursuant to the Rules made by the Central Government for the maintenance of cost records u/s 148 of the Act, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
7. a) Undisputed statutory dues including PF, ESI, income-tax, sales-tax, service tax, duty of custom, duty of excise, VAT, cess have generally been regularly deposited with the appropriate authorities though there has been a slight delay in a few cases.
b) There are no dues of Sales Tax, Customs Duty, Excise Duty and VAT which have not been deposited on account of any dispute. The particulars of Income tax, Service Tax (or any other tax) which have not been deposited on account of any dispute is as follows:
8. The Company had no loans from a Financial Institution or Bank or government or dues to debenture holders & therefore this clause is not applicable to the Company.
Name of Statute |
Nature of the dues |
Amount in Rs. |
Period to which the amount relates |
Forum where the dispute is pending |
Income Tax Act |
Income Tax |
1,93,52,640 |
2011-12 |
Commissioner of Income Tax, Coimbatore |
Income Tax Act |
Income Tax |
1,42,02,440 |
2012-13 |
Assistant Commissioner of Income Tax,Circle-I,Erode |
Income Tax Act |
Income Tax |
29,66,600 |
2013-14 |
Income Tax Department-CPC |
Income Tax Act |
TDS |
83,16,133 |
2008-16 |
TDS -CPC |
Central Excise Act |
Service Tax |
2,52,28,175 |
2010-11 |
Commissioner of Central Excise,Salem |
Contingent Liabilities |
||||
84,25,15,307 |
Bank Guarantees |
|||
1,88,12,798 |
Inland Letterof Credits |
9. Based on our audit procedures, we are of the opinion that the company has not defaulted in repayment of dues to its bank, financial institution, and Government or Debenture holders.
10. Based upon the audit procedures performed, we report that no fraud by the company and no fraud on the Company by its officers / employees has been noticed or reported during the course of our audit.
11. The Managerial Remuneration has been paid / provided in accordance with the requisite approvals mandated by Sec. 197 read with Schedule V to the Act.
12. The Company is not a Nidhi Co. and therefore clause 3(12) of the Order is not applicable to the Company.
13. In our opinion, all the Related Party Transactions entered into by the Company during the year are in compliance with the provisions Sec. 188 & 177 of the Act and the details thereof have been disclosed in the Financial Statements as required by the Accounting standards and the Act.
14. The Company has not made any preferential allotment / private placement of shares during the year and therefore this clause is not applicable to the Company.
15. The Company has not entered into any non-cash transactions with directors / persons connected with him as stipulated u/s. 192 of the Act. Clause 3(15) of the Order is therefore not applicable to the Company.
16. In our opinion, the Company is not required to be registered u/s 45-IA of the Reserve Bank of India Act, 1934.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Act")
We have audited the internal financial controls over financial reporting of M/s. RPP Infra Projects Limited as of March 31, 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 issued by the Institute of Chartered Accountants of India. 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 on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Noteâ) 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, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. 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 March 31, 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 on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.
For KARTHIKEYAN & JAYARAM
Chartered Accountants
CA G.N. JAYARAM.,FCA.,DISA
Partner
Place: Erode Membership No: 200 - 27291
Date: 27.05.2016 Firm Reg. No: - 007570S
Mar 31, 2015
We have audited the accompanying standalone financial statements of RPP
INFRA PROJECTS LIMITED which comprise the Balance Sheet as at 31 March
2015, 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 Financial Statements
The Company's Board of Directors is responsible for the matters in
section 134(5) of the Companies Act, 2013 with respect to the
preparation of these 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, including the Accounting Standards specified under
Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes the maintenance of
adequate accounting records in accordance with the provision of the Act
for safeguarding of the assets of the Company and for preventing and
detecting the 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 internal financial control, 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 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 true and fair view in
order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
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 financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, 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, 2015;
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) Order, 2015 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 statement on the
matters specified in the para 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 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, 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 subject to non
adherence with Accounting Standard 15 dealing with employee benefits in
as much as the gratuity liability provided not being on the basis of
actuarial valuation;
On the basis of the written representations received from the directors
as on 31st March 2015 taken on record by the Board of Directors, none
of the directors is disqualified as on 31st March 2015 from being
appointed as a director in terms of Section 164(2) of the Act, and
e. 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 financial statements.
ii. The Company did not have any long-term contracts including
derivative contracts for which there are material foreseeable losses
iii. There were no amounts due to be transferred to the Investor
Education and Protection Fund by the company during the year
Annexure to the Auditors' Report dated 29.05.2015 The Annexure referred
to in our report to the members of RPP Infra Projects Limited for the
year Ended on 31st March 2015. We report that:
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of the fixed
assets.
(b) All the assets have been physically verified by the management
during the year and that there is a regular programme of verification
which in our opinion is reasonable having regard to the size of the
company and the nature of its assets. As reported no material
discrepancies have been noticed on such verification.
(ii) (a) The inventory has been physically verified during the year by
the Management. In our opinion, the frequency of the verification is
reasonable.
(b) The procedures of physical verification of stock 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 opinion and according to the information and explanations
given to us, the company is maintaining proper records of inventory.
The discrepancies noticed on verification between the physical stocks
and the book records were not material.
(iii) Clauses (a) & (b) are not applicable as the Company has not
granted any loans to entities covered in the register maintained under
section 189 of the Companies Act, 2013.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the work done. During the course of our audit we have not
observed any continuing failure to correct major weaknesses in internal
controls.
(v) The company has not accepted any deposits from the public.
(vi) The company has, prima facie, maintained cost records specified by
the central government under sub-section (1) of section 148 of the
Companies Act.
(vii) (a) According to the information and explanation given to us and
on the basis of our examination of the records by the company, amounts
deducted / accrued in the books of account in respect of undisputed
statutory dues including provident fund, income tax sales tax, wealth
tax, service tax, duty of customs, value added tax, cess and other
material statutory dues have been regularly deposited during the year
by the company with the appropriate authorities. As explained to us,
the company did not have any dues on accounts of employees' state
insurance and duty of excise.
According to the information and explanations given to us, no
undisputed amounts payable in respect of provident fund, income tax,
sale tax, wealth tax, service tax, duty of customs, value added tax,
cess and other material statutory dues were in arrears as at 31st March
2015 for the period of more than six months from the date they became
payable.
(b) According to the information and explanations given to us, there
are no material dues of wealth tax, duty of customs and cess which have
not been deposited with the appropriate authorities on account of any
dispute. However, according to information and explanations given to
us, the following dues of income tax, sales tax, service tax and value
added tax have not been deposited by the company on account of
disputes.
Sl
No Tax Law Forum where the Dispute is pending
1 Income Tax Assistant Commissioner of Income Tax,
Circle - I, Erode
2 Income Tax Assistant Commissioner of Income Tax,
Circle - I, Erode
3 Income Tax Assistant Commissioner of Income Tax,
Circle - I, Erode
4 Income Tax Assistant Commissioner of Income Tax,
Circle - I, Erode
5 Income Tax Income Tax Appellate Tribunal, Chennai
6 Income Tax Commissioner of Income Tax, Coimbatore
7 Income Tax Commissioner of Income Tax, Coimbatore
8 Income Tax Assistant Commissioner of Income Tax,
Circle - I, Erode
9 Service Tax Commissioner of Central Excise, Salem
Contingent Liabilities
10 Bank Guarantees
11 Inland Letter of Credits
Financial Year Amount
2005- 06 24,29,318
2006- 07 7,05,443
2007- 08 8,268
2008- 09 1,01,22,896
2009- 10 3,04,25,600
2010- 11 2,50,10,460
2011- 12 4,16,27,450
2012-13 1,15,62,950
2008-09 2,52,28,175
44,17,24,730
4,87,62,607
(c) According to the information and explanations given to us there are
no amounts required to be transferred to the investor education and
protection fund in accordance with the relevant provisions of the
companies act and rules there under.
(viii) The company does not have any accumulated losses at the end of
the financial year and has not incurred cash losses in the financial
year and in the immediately preceding financial year.
(ix) In our opinion and according to the information and explanation
given to us, the Company has not defaulted in repayment of dues to a
financial institution or bank/ debentures.
(x) According to the information given to us, the company has not given
any guarantees or loans taken for loans taken from bank or financial
institutions, the terms and conditions whereof are prejudicial to the
interest of the company.
(xi) In our opinion, the term loans have been applied for the purpose
for which they were raised.
(xii) According to the information and explanations given to us no
fraud on or by the company has been noticed or reported during the
course of our audit.
For KARTHIKEYAN & JAYARAM
CHARTERED ACCOUNTANT
CA G.N. JAYARAM F.C.A
Partner
Place : Erode Membership No.200-027291
Date : 29.05.2015 Firm Regn No.0075705
Mar 31, 2014
We have audited the accompanying financial statements of R.P.P. Infra
Projects Limited (''the company'') which comprise the Balance Sheet as at
March 31, 2014, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management is responsible for the preparation of these 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 Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control 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.
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, 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,
In our opinion and to the best of our information and according to the
explanations given to us, the 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, 2014;
b) in the case of the Profit and Loss Account, of the profit/ loss for
the year ended on that date; and
c) in the case of the Cash Row Statement, of the cash flows for the
year ended on that date.
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of 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 the Company so far as appears from our examination of those
books
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, 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 AUDITOR''S REPORT
Re: R.P.P INFRA PROJECTS LTD
The Annexure referred to in our report to the members of R.P.P. Infra
Limited (''the company'') for the year 31s1 March 2014. We report that:
(i) (a) The Company has maintained proper records showing fuil
particulars including quantitative details and situation of the fixed
assets.
(b) All the assets have been physically verified by the management
during the year and that there is a regular programme of verification
which in our opinion is reasonable having regard to the size of the
company and the nature of its assets. As repotted no material
discrepancies have been noticed on such verification.
(c) Fixed Assets disposed of during the year were not substantial.
According to the information and explanations given to us, we are of
the opinion that disposal of the Fixed Assets has not affected the
going concern status of the Company.
(ii) (a) The inventory has been physically verified during the year by
the Management. In our opinion, the frequency of the verification is
reasonable.
(b) The procedures of physical verification of stock 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 opinion and according to the information and explanations
given to us, the company is maintaining proper records of inventory.
The discrepancies noticed on verification between the physical stocks
and the book records were not material.
iii. Clauses (a) to (d) are not applicable as the Company has not
granted any loans to entities covered in the register maintained under
section 301 of the Companies Act, 1956. Chapter (e) to (g) are not
applicable as the company has not taken any loans secured or unsecured
from companies, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the work done. During the course of our audit we have not
observed any continuing failure to correct major weaknesses in internal
controls.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the Act have been entered in the register
required to be maintained under that section; and
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements exceeding the value of rupees five lakhs in respect of any
party during the year have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public
so as to attract section 58A, 58AA and other relevant provisions of the
Act.
(vii) In our opinion the Company has regular internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government of India,
regarding the maintenance of cost records under clause (d) of
subsection (1) of Section 209 of the Act and are of the opinion that
prima facie, the prescribed accounts and records have been maintained.
We have, however not made a detailed examination of the records with a
view to determine whether they are accurate or complete.
(ix) (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employees'' state insurance, income
tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess
and other material statutory dues applicable to it.
(b) According to the information and explanations given to us, there
are no undisputed amounts payable in respect of income tax, wealth tax,
service tax, sales tax, excise duty and cess were in arrears as at 31st
March, 2014, for a period of more than six months from the date they
became payable except in respect of the particulars given here under:
S.No. Tax Laws Financial Period Amount
1 Income Tax (TDS) 2013-14 Rs.ll,08,608
(c) According to the information and explanation given to us, there are
no dues of sales tax, income tax, customs duty, wealth tax, excise duty
and cess which have not been deposited on account of any dispute,
except in respect of the particulars given here under:
S. Tax Laws Forum where Dispute is pending Period Amount
No
1 Service Tax Commissioner of Central Excise, F.Yr 2008-09 2,52,28,175
Salem
2 Income Tax Assistant Commissioner of F.Yr 2005-06 24,14,650
Income Tax, Circle-I,Erode
3 Income Tax Assistant Commissioner of F.Yr 2008-09 Rs. 51,87,870/-
Income Tax, Erode
(x) There are no accumulated losses of the company. The Company has not
incurred cash losses during the financial year covered by our audit and
in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanation
given to us, the Company has not defaulted in repayment of dues to a
financial institution or bank. There are no debenture holders.
(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, debentures and other
securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund/society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditors'' Report) Order, 2003 are not
applicable to the Company.
(xiii)In our opinion and according to the information and explanations
given to us, the Company is not dealing or trading in shares,
securities, debentures & other investments. The trading in shares is
only in the nature of investments.
(xiv) In our opinion, the Company is not dealing in or trading 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) As per written undertaking taken on record from the Management,
the Company has not given any guarantee for loans taken by others from
bank or financial institutions.
(xvi) In our opinion, the term loans have been applied for the purpose
for which they were raised.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds raised on short-term basis have 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 to parties and
companies covered in the register maintained under section 301 of the
Act.
(xix) According to the information and explanations given to us, the
Company has not issued any debentures.
(xxi) According to the information and explanations given to us no
fraud on or by the company has been noticed or reported during the
course of our audit.
For KARTHIKEYAN & JAYARAM
CHARTERED ACCOUNTANTS
CA. G.N. JAYARAM, F.C.A.
Partner.
Membership No: 200-027291
Firm Regn No: 007570S
Place: Erode
Date: 29/05/2014
Mar 31, 2013
REPORT OF THE AUDITORS TO THE MEMBERS OF
M/S. R.P.P. INFRA PROJECTS LTD
We have audited the accompanying financial statements of R.P.P. Infra
Projects Limited (Âthe company'') which comprise the Balance Sheet as at
March 31, 2013, and the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management is responsible for the preparation of these 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 Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control 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.
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, 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.
In our opinion and to the best of our information and according to the
explanations given to us, the 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, 2013;
b) in the case of the Profit and Loss Account, of the profit/ loss 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.
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of 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 the Company so far as appears from our examination of those
books
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
The Annexure referred to in Our Report of even date to the members of
M/s. R.P.P. Infra Projects Ltd, on the accounts of the Company for the
year ended 31st March, 2013.
On the basis of such check as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of the fixed
assets.
(b) As explained to us, fixed assets have been physically verified by
the management at reasonable intervals; no material discrepancies were
noticed on such verification.
(c) In our opinion and according to the information and explanation
given to us the Fixed Assets disposed of during the year were not
substantial. According to the information and explanations given to us,
we are of the opinion that disposal of the Fixed Assets has not
affected the going concern status of the Company.
2. (a) As explained to us, inventories have been physically verified
during the year by the management at reasonable intervals.
(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 opinion and on the basis of our examination of the records,
the Company is generally maintaining proper records of its inventories.
No material discrepancy was noticed on physical verification of stocks
by the management as compared to book records.
3. (a) According to the information and explanations given to us and
on the basis of our examination of the books of account, the Company
has not granted any loans, secured or unsecured, to companies, firms or
other parties listed in the register maintained under Section 301 of
the Companies Act, 1956. Consequently, the provisions of clauses iii
(b), iii(c) and iii (d) of the order are not applicable to the Company.
(b) According to the information and explanations given to us and on
the basis of our examination of the books of account, the Company has
not taken loans from companies, firms or other parties listed in the
register maintained under Section 301 of the Companies Act, 1956. Thus
sub clauses (f) & (g) are not applicable to the company.
4. In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business, for purchases of inventories, fixed assets and payment of
expenses and for the work done. During the course of our audit, no
major instance of continuing failure to correct any weaknesses in the
internal controls has been noticed.
5. (a) Based on the audit procedures applied by us and according to
the information and explanations provided by the management, the
particulars of contracts or arrangements referred to in section 301 of
the Act have been entered in the register required to be maintained
under that section.
(b) As per information & explanations given to us and in our opinion,
the transaction entered into by the company with parties covered u/s
301 of the Act does not exceeds five lakh rupees in a financial year
therefore requirement of reasonableness of transactions does not
arises.
6. The Company has not accepted any deposits from the public so as to
attract section 58A and58AA of the Companies Act, 1956 and other
relevant provisions of the Act.
7. In our opinion the Company has regular internal audit system
commensurate with the size and nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government of India,
regarding the maintenance of cost records under clause (d) of
subsection (1) of Section 209 of the Act and are of the opinion that
prima facie, the prescribed accounts and records have been maintained.
We have, however not made a detailed examination of the records with a
view to determine whether they are accurate or complete.
9. (a) According to the records of the Company, undisputed statutory
dues including Provident Fund, Investor Education Protection Fund,
Employees'' State Insurance, Income Tax, Sales Tax, Wealth Tax, Service
Tax, Custom Duty,
Excise Duty, cess to the extent applicable and other l statutory dues
have generally been deposited with the appropriate authorities..
According to the information and explanations given to us there were no
outstanding statutory dues as on 31st of March, 2012 for a period of
more than six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no undisputed amounts payable in respect of income tax, wealth tax,
service tax, sales tax, excise duty and cess were in arrears as at 31st
March, 2013, for a period of more than six months from the date they
became payable.
(c) According to the information and explanation given to us, there are
no dues of sales tax, income tax, customs duty, wealth tax, excise duty
and cess which have not been deposited on account of any dispute,
except in respect of the particulars given here under:
S.No Tax Laws Forum where Dispute is pending Period Amount
1 Service Tax Commissioner of Central Excise, Salem F.Yr 2008-09
Rs.2,02,28,175/-
2 Income Tax Assistant Commissioner of Income Tax, Circle-I, Erode F.Yr
2005-06 Rs. 24,14,650/-
3 Income Tax Assistant Commissioner of Income Tax, Erode F.Yr 2008-09
Rs. 51,87,870/-
10. There are no accumulated losses of the company. The Company has not
incurred cash losses during the financial year covered by our audit and
in the immediately preceding financial year.
11. In our opinion and according to the information and explanation
given to us, the Company has not defaulted in repayment of dues to a
financial institution or bank. There are no debenture holders.
12. 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, debentures and other
securities.
13. In our opinion, the Company is not a chit fund or a nidhi / mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditors'' Report) Order, 2003 are not applicable to the
Company.
14. In our opinion and according to the information and explanations
given to us, the Company is not dealing or trading in shares,
securities, debentures & other investments. The trading in shares is
only in the nature of investments. Proper records & timely entries have
been maintained in this regard and the investments specified are held
in their own name. Accordingly, the provisions of clause 4(xiv) of the
Companies (Auditor''s Report) Order, 2003 are not applicable to the
Company.
15. As per written undertaking taken on record from the Management,
the Company has not given any guarantee for loans taken by others from
bank or financial institutions.
16. In our opinion, 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, we report
that no funds raised on short-term basis have been used for long-term
investment.
18. According to the information and explanations given to us, the
Company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the
Act.
19. According to the information and explanations given to us, the
Company has not issued any debentures.
20. The Company has not raised any money by public issue during the
year.
21. According to the information and explanations given to us no fraud
on or by the company has been noticed or reported during the course of
our audit.
For KARTHIKEYAN & JAYARAM
CHARTERED ACCOUNTANTS
CA. G.N. JAYARAM, F.C.A.
Partner
Date : 30/05/2013 Membership No: 200-027291
Place : Erode Firm Regn No: 007570S
Mar 31, 2012
1. We have audited the attached Balance Sheet of M/s.RPP INFRA PROJECTS
LIMITED as at 31.03.2012, the Profit and LossAccount and also the Cash
Flow Statement for the year ended on that date annexed thereto. These
financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements basedonour audit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require thatwe plan and
perform the auditto obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a 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 management, as well as evaluating the overall financial statement
presentation. We believe that our audit providesareasonable basis for
our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, read with Companies' (Auditors'
Report) (Amendment) Order 2004 dated 25.11.2004, we enclose in the
annexure a statement on the matters specified in paragraphs 4 and 5 of
the said Order.
4. Furtherto our comments in the Annexure referred to above, wereport
that:
I) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose ofour
audit.
ii) In our opinion proper books of account as required by law have been
kept by the company so far as appears from our examination of those
books. The Report of Auditors of the Branch of the Company in Srilanka
has been audited by other Auditors and our opinion is solely based on
the report of such other Auditors. This has been appropriately dealt
withbyus inthe Company'sAccounts.
iii) The Balance Sheet, Profit and Loss Account and Cash Flow statement
dealt with by this report are in agreement with the booksof account and
with the audited returns from the branches.
iv) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow statement dealt with by this report comply with the Accounting
Standards referredto insub-section (3C)of Section 211of the
CompaniesAct, 1956.
v) On the basis of written representation received from the Board of
Directors and taken on record by the Board of directors, we report that
none of the directors are disqualified at the year end as per the
provisions of clause (g) of sub- section (1) ofSection 274of the
CompaniesAct, 1956.
vi) 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 inconformity with the accounting principles
generally accepted inIndia::
a) inthe case ofBalance Sheet, ofthe stateof affairsofthe
CompanyasatMarch, 31, 2011.
b) inthe case ofthe Profit and Loss account, ofthe profitofthe Company
for the year endedonthat date; and
c) in the case ofthe Cash Flow statement,of the cash flows for the year
endedonthat date.
ANNEXURE TO THE AUDITOR'S REPORT (Referred to in paragraph 3 of our
Report dated 27/08/2012)
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of the fixed
assets.
(b) All the assets have been physically verified by the management
during the year and that there is a regular programme ofverification
whichin our opinion isreasonable having regard to the sizeof the
company and the nature of its assets.As reported no material
discrepancies have been noticed onsuch verification.
(c) Fixed Assets disposed of during the year were not
substantial.According to the information and explanations given to
us,weareofthe opinion that disposal ofthe FixedAssets has not affected
the going concern status ofthe Company.
(ii) (a) The inventory has been physically verified during the year by
the Management. In our opinion, the frequency of the verification is
reasonable.
(b) The procedures of physical verification of stock followed by the
management are reasonable and adequate in relation tothe sizeofthe
company and the nature ofits business.
(c ) In our opinion and according to the information and explanations
given to us, the company is maintaining proper records of inventory.
The discrepancies noticed on verification between the physical stocks
and the book records were not material.
iii. (a) The Company has not granted loans to the company covered in
the register maintained under section 301 of the CompaniesAct, 1956.
(b) is not applicable as no loans were not given to these Companies
except to M/s.RPP Energy Systems Private Limited and the maximum amount
outstandingatany point ofthe year was asumof Rs. 73,54,275.
(c ) and (d) are not applicable as there are no stipulated terms for
the repayment of principal and the loan is interest- free.
(e) to (g) are not applicable as the company has not taken any loans
secured or unsecured from companies, firms or other parties covered
inthe register maintained under section 301ofthe CompaniesAct, 1956.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the work done. During the course of our audit we have not
observed any continuing failureto correct major weaknessesininternal
controls.
(v) (a)According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in section 301 of theAct have been entered in the register
required to be maintained under that section; and the list containing
the maximum amounts outstanding atany pointoftimeisattached herewith.
(b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts
orarrangements exceeding the value ofrupees five lakhs inrespect of any
party during the year have been madeat prices which are reasonable
having regard toprevailing market pricesat the relevant time (vi) The
Company has not accepted any deposits from the public within the
meaning of Sections 58A and 58AAof the Act and the rules framed there
under. Therefore, the provisions of Section 58A, 58AAand any other
relevant provisions of the Companies Act, 1956 and the rules framed
there under with regard to deposits accepted from the public are not
applicabletothe Company.
(vii) In our opinion the Company has regular internal audit system
commensurate with the size and nature of its business.
(viii) We have broadly reviewed the books of account maintained by the
Company pursuant to the rules made by the Central Government of India,
regarding the maintenance of cost records under clause (d) of
subsection (1) of Section 209 of the Act and are of the opinion that
prima facie, the prescribed accounts and records have been maintained.
We have, however not made a detailed examination of the records with a
view to determine whether they are accurate or complete.
(ix) (a)Accordingtothe recordsof the Company, Provident Fund, Investor
Education and Protection Fund, Employees' State Insurance, Income Tax,
Sales Tax, Wealth Tax, Service Tax, Customs Duty, Excise Duty, Cess and
other material statutory dues applicable to it have been generally
regularly deposited during the year with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of above were in arrears,as
atMarch 31, 2012 for aperiodofmore than six months from the dateonwhich
they became payable.
(b) According to the information and explanations given to us, there
are no undisputed amounts payable in respect of income tax, wealth tax,
service tax, sales tax, excise duty and cess werein arrears asat31st
March, 2011, foraperiod of more than six months from the date they
became payable except a sum of Rs.341245/- and Rs.65582/- towards Sales
tax and Income tax respectively.
(c) According to the information and explanation given to us, there are
no dues of sales tax, income tax, customs duty, wealth tax, excise duty
and cess which have not been deposited on account of any dispute,
except in respect of the particulars given here under:
S.No Tax LawsForum where Dispute is pendingPeriodAmount1Service Tax
Commissioner of Central Excise, Salem F.Yr 2008-09 Rs.2,52,28,175/- 2
Income Tax Assistant Commissioner of Income Tax, Circle-I, ErodeF.Yr
2005- 06Rs. 24,14,650/- 3 Income Tax Assistant Commissioner of Income
Tax, ErodeF.Yr 2008-09Rs. 51,87,870/-
(x) There are no accumulated losses of the company. The Company has not
incurred cash losses during the financial year coveredbyour audit
andinthe immediately preceding financial year.
(xi) In our opinion and according to the information and explanation
given to us, the Company has not defaulted in repaymentofduestoa
financial institutionor bank. There are no debenture holders.
(xii) In our opinion, and according to the information and explanations
given to us, the Company has not granted any loans and advancesonthe
basisof securitybyway ofpledgeof shares, debentures and other
securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund/society. Therefore, the provisions of clause
4(xiii)ofthe Companies (Auditors' Report) Order, 2003 are not
applicable tothe Company.
(xiv)In our opinion and accordingtothe information and explanations
giventous, the Companyis not dealing or trading in shares, securities,
debentures&other investments.
(xv)As per written undertaking taken on record from the Management, the
Company has not given any guarantee for loans takenbyothers from
bankorfinancial institutions.
(xvi)Inour opinion, the term loans have been applied for the purpose
for which they were raised.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company,wereport
thatnofunds raised on short-term basis have been used for long-term
investment.
(xviii) According to the information and explanations given to us, the
Company has not made preferential allotment of sharesto parties and
companies covered inthe register maintained under section 301oftheAct.
(xix)Accordingtothe information and explanations given tous, the
Company has not issued any debentures.
(xx)The company has not raised any money by wayofpublic issue during
the year.
(xxi) According to the information and explanations given to us no
fraud on or by the company has been noticed or reported during the
courseof our audit.
For KARTHIKEYAN & JAYARAM
CHARTERED ACCOUNTANTS
CA. G.N. JAYARAM, F.C.A.
Partner
Place: Erode, Membership No: 200-027291
Date : Aug 27, 2012 Firm Regn.No: 007570S
Mar 31, 2011
1. We have audited the attached Balance Sheet of M/s. RPP INFRA
PROJECTS LIMITED as at 31.03.2011, the Profit and Loss Account and also
the Cash Flow Statement for the year ended on that date annexed
thereto. 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 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 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 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 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Companies Act, 1956, read with Companies' (Auditors'
Report) (Amendment) Order 2004 dated 25.11.2004, 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 above, we
report that:
i) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
ii) In our opinion proper books of account as required by law have been
kept by the company so far as appears from our examination of those
books. The Srilankan Branch AuditorÃs report has been forwarded to us
and has been appropriately dealt with by us.
iii) The Balance Sheet, Profit and Loss Account and Cash Flow statement
dealt with by this report are in agreement with the books of account
and with the audited returns from the branches.
iv) 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.
v) On the basis of written representation received from the Board of
Directors and taken on record by the Board of directors, we report that
none of the directors are disqualified at the year end as per the
provisions of clause (g) of sub-section (1) of Section 274 of the
Companies Act, 1956.
vi) 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:
a) in the case of Balance Sheet, of the state of affairs of the Company
as at March, 31, 2011.
b) in the case of the Profit and Loss account, of the profit of the
Company 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.
Re : R.P.P INFRA PROJECTS LTD
(Referred to in paragraph 3 of our Report dated 25.07.2011)
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of the fixed
assets.
(b) All the assets have been physically verified by the management
during the year and that there is a regular programme of verification
which in our opinion is reasonable having regard to the size of the
company and the nature of its assets. As reported no material
discrepancies have been noticed on such verification.
(c) During the year the has disposed off only a negligible portion of
its plant & Machinery and has made substantial additions. We are of the
opinion that the sale of the said part of Plant & Machinery has not
affected the going concern status of the Company.
(ii) (a) The inventory has been physically verified during the year by
the Management. In our opinion, the frequency of the verification is
reasonable.
(b) The procedures of physical verification of stock followed by the
management are reasonable and adequate in relation to the size of the
company and the nature of its business.
(c ) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
iii. (a) The Company has granted loan to one company covered in the
register maintained under section 301 of the Companies Act, 1956. The
amount involved during the year was Rs.46 lakhs and the year-end
balance of loan was also Rs.46 Lakhs.
(b) No interest is charged on the loan, and as the Company is paying
interest on its borrowings from the bank it is prima facie prejudicial
to the interest of the Company.
(c) and (d) are not applicable as there are no stipulated terms for the
repayment of principal and the loan is interest-free.
(e) to (g) are not applicable as the company has not taken any loans
secured or unsecured from companies, firms or other parties covered in
the register maintained under section 301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit we have not
observed any continuing failure to correct major weaknesses in
internal controls.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the particulars of contracts or arrangements
referred to in section 301 of the Act have been entered in the register
required to be maintained under that section; and
(b) In our opinion and according to the information and explanations
given to us, the trans- actions made in pursuance of such contracts or
arrangements exceeding the value of rupees five lakhs in respect of any
party during the year have been made at prices which are reasonable
having regard to prevailing market prices at the relevant time.
(vi) In our opinion and according to the information and explanations
given to us, provisions of section 58A & 58 AA or any other relevant
provisions of the companies Act, 1956 are not attracted as the Company
has not accepted any deposits from the public.
(vii) In our opinion the Company has regular internal audit system
commensurate with the size and nature of its business.
(viii) In our opinion and according to information and explanations
given to us, the provisions of section 209(1)(d) of the Companies Act,
1956 are not attracted in the nature of the activities undertaken by
the company.
(ix) (a)The Company is regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employees' state insurance, income
tax, sales tax, wealth tax, service tax, custom duty, excise duty, cess
and other material statutory dues applicable to it.
(b) According to the information and explanations given to us, there
are no undisputed amounts payable in respect of income tax, wealth tax,
service tax, sales tax, excise duty and cess were in arrears as at 31st
March, 2011, for a period of more than six months from the date they
became payable.
(c) According to the information and explanation given to us, there are
no dues of sales tax, income tax, customs duty, wealth tax, excise duty
and cess which have not been deposited on account of any dispute,
except in respect of the particulars given here under:
S.No Tax Laws Forum where Dispute Period Amount
is pending (In Rs.)
1. Service Tax Commissioner of F.Yr 2,52,28,175
Central Excise Salem 2008-09
2. Income Tax F.Yr 24,14,650
2006-07
3. Income Tax F.Yr 51,87,870
2009-10
(x) There are no accumulated losses of the company. The Company has not
incurred cash losses during the financial year covered by our audit and
in the immediately preceding financial year.
(xi) In our opinion and according to the information and explanation
given to us, the Company has not defaulted in repayment of dues to a
financial institution or bank. There are no debenture holders.
(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, debentures and other
securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi /
mutual benefit fund/society. Therefore, the provisions of clause
4(xiii) of the Companies (Auditorsà 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 is not dealing or trading in shares,
securities, debentures & other investments. The trading in shares is
only in the nature of investments.
(xv) As per written undertaking taken on record from the Management,
the Company has not given any guarantee for loans taken by others from
bank or financial institutions.
(xvi) In our opinion, the term loans have been applied for the purpose
for which they were raised.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company, we report
that no funds aised on short-term basis have 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 to parties and
companies covered in the register maintained under section 301 of the
Act.
(xix) According to the information and explanations given to us, the
Company has not issued any debentures.
(xx) We have verified the end use of money raised by public issue as
disclosed by the management in the notes to the Financial Statements.
(xxi) According to the information and explanations given to us no
fraud on or by the company has been noticed or reported during the
course of our audit.
For KARTHIKEYAN & JAYARAM
CHARTERED ACCOUNTANTS
(sd/-)
CA. G.N. JAYARAM, F.C.A.
Partner.
Membership No: 200-027291
Firm Regn No: 07570S
Place : Erode
Date : 25.07.2011
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