Mar 31, 2018
Report on the Standalone Financial Statements
We have audited the accompanying Standalone Ind AS financial statements of Ruchi Infrastructure Limited ( The Company ) which comprise the Balance Sheet as at March 31, 2018, 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 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 1 34(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 Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, and other accounting principles generally accepted in India. This Responsibility also includes 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 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 Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditor s Responsibility
Our responsibility is to express an opinion on these standalone Ind AS financial statements based on our audit.
We have taken into account the provision of the Act, the accounting and auditing standard and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.
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 Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Ind AS financial statements. The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement of the Ind AS 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 Ind AS 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 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 Ind AS 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 Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to 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 accounting principles generally accepted in India, of the state of affairs of the company as at 31st March, 201 8, and its loss, total comprehensive income, the changes in equity 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, 201 6 ( 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 statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.
2. As required by section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the 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 and proper returns adequate for the purposes of our audit have been received from the branches not visited by us.
c) The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian accounting standards specified under section 133 of the act, read with rules framed thereunder.
e) On the basis of the written representations received from the directors as on 31st March 201 8 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 201 8 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 B .
g) With respect to the other matters to be included in the Auditor s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 (as amended), 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 IND AS financial statement refer note 33 to the financial statement;
b. The Company did not have any long term contract including derivative contract for which there were any material foreseeable losses.
c. There were no amount which, required to be transferred, to the Investor Education and Protection Fund by the company.
ANNEXURE A TO INDEPENDENT AUDITOR S REPORT
Referred to in paragraph (1) under the heading of Report on Other Legal and Regulatory Requirements of our report of even date to the members of Ruchi Infrastructure Limited on the standalone Ind AS financial statements for the year ended 31st March, 201 8.
i. In respect of its Fixed Assets :
a. The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets.
b. As explained to us, the fixed assets of the Company 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 between the book records and the physical inventory have been noticed. In our opinion, the frequency of verification is reasonable.
c. According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
ii. In respect of its Inventories:
The inventories has been physically verified by the Management during the year. In our opinion, the frequency of verification is reasonable and no material discrepancies were noticed.
iii. According to the information and explanations given to us, the Company has granted unsecured loans to three companies covered in the register maintained under section 189 of the Companies Act, 2013. The company has not granted any loans secured or unsecured to firms, LLPs or other parties covered in the register maintained under section 189 of the Companies Act, 201 3. In respect of the aforesaid loans granted :
a. The terms and conditions of the grant of such loans are not prejudicial to the company s interest;
b. There is no stipulation of schedule of repayment of principal and payment of interest. We are unable to make specific comment on the regularity of repayment of principal and payment of interest.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made and guarantee given. The company has not provided any security in terms of section 1 85 and 1 86 of the Act.
v. In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from the public within the meaning of Section 73 to 76 or any other relevant provisions of the Companies Act, 201 3 and the Rules, framed there under. As informed to us no Order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other Tribunal.
vi. We have broadly reviewed the cost records maintained by the Company pursuant to the rules made by the Central Government under sub-section (1) of Section 148 of the Companies Act, 201 3 and are of the opinion that prima facie the prescribed 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.
vii. In respect of Statutory dues :
a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion the Company is generally regular in depositing undisputed statutory dues including provident fund, employee s state insurance, income tax, sales tax, goods and service tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities. There were no undisputed statutory dues in arrears, as at 31st March, 201 8 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 dues of sales tax, value added tax, income tax, service tax, duties of customs, duties of excise which have not been deposited with appropriate authorities on account of any dispute except as follows :
Name of the Statute |
Nature of Dues |
(Amount in lacs) |
Related Period |
Forum where dispute is pending |
Sales Tax / VAT Acts |
Sales Tax /Vat |
4,28,515 |
2007-2008 |
M.P.Commercial tax appellate board |
Sales Tax / VAT Acts |
Sales Tax /Vat |
4,73,681 |
2011-2012 |
Jt. Commissioner of Commercial Taxes, Mangalore |
Sales Tax / VAT Acts |
Sales Tax /Vat |
3,54,273 |
2009-2010 |
Addl. Commissioner of Commercial taxes , Indore |
Sales Tax/VAT Acts |
Entry Tax |
70,53,833 |
2013-2014 |
The High Court, Kolkatta |
Central Excise & Service Tax Act |
Service Tax |
4,23,20,031 |
2009-2010 to 2014-2015 |
Appeal at CESTAT, New Delhi |
Central Excise & Service Tax Act |
Service Tax |
9,28,595 |
2012-2013 to 2014-2015 |
The Commissioner Indore |
Income Tax Act |
Income Tax |
32,97,742 |
2007-2008 to 2009-10 |
CIT ( Appeals) Mumbai |
viii. According to the records of the company examined by us and as per the information and explanations given to us, the Company has not defaulted in repayment of loans and borrowings to a financial institution, bank or government as on the balance sheet date. The Company has not issued any debenture.
ix. In our opinion and according to the information and explanations given to us, the company has not raised money by way of initial public offer or further public offer (including debt instruments) and In our opinion and according to the information and explanations given to us, the Company has not raised any term loan during the year.
x. During the course of our examination of the books of account and records of the Company, carried out in accordance with the generally accepted auditing practices in India and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the company by the officers or employees, noticed or reported during the year, nor have we been informed of such case by the management.
xi. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid / provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 1 97 read with Schedule V to the Act.
xii. In our opinion and according to information and explanation given to us, the company is not a Nidhi Company therefore, the provision of para 3 (xii) of the Order is not applicable to the company.
xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv. According to the information and explanations given to us and based on our examination of the records of the company, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year, therefore the provision of para 3 (xiv) of the Order is not applicable to the company.
xv. In our opinion and according to the information and explanations given to us, the company has not entered into any noncash transactions with directors or persons connected with him during the year, hence the provision of para 3 (xv) of the Order is not applicable to the company.
xvi. The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 therefore, the provision of para 3 (xvi) of the Order is not applicable to the company for the year under audit.
Annexure B To the Independent Auditor s Report of even date on the Standalone Financial Statements of Ruchi Infrastructure Limited
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 Ruchi Infrastructure Limited ( the Company ) as of March 31, 201 8 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 Note ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(1 0) of the Companies Act, 201 3, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company s internal financial controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A company s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company s internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company s assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 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 Ashok Khasgiwala & Co.
Chartered Accountants
(Firm Reg. No. 000743C)
CA Ashok Khasgiwala
Date : 30.05.2018 (Partner)
Place : Indore M.No. 070288
Mar 31, 2016
To,
The Members of
RUCHI INFRASTRUCTURE LIMITED
Report on the Standalone Financial Statements
We have audited the accompanying Standalone financial statements of Ruchi Infrastructure Limited ("The Company") which comprises the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended and a summary of significant accounting policies and other explanatory information.
Management''s Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (the Act) with respect to the preparation of these standalone financial statement 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 Standard 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 provision 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provision of the Act, the accounting and auditing standard and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of 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 accounting principles generally accepted in India, of the state of affairs of the company as at 31st March, 2016, and its 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 statement on the matters specified in the paragraph 3 and 4 of the Order, to the extent applicable.
2. As required by section 143 (3) of the Act, we report that:
a) We have sought and obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the 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 and proper returns adequate for the purposes of our audit have been received from the branches not visited by us.
c) The Balance Sheet, the Statement of Profit and Loss and Cash Flow Statement dealt with by this report are in agreement with the books of account and with the returns received from the branches not visited by us.
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 201 6 taken on records by the Board of Director, 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 B".
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to be 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 statement - refer note 29 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 no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the company.
ANNEXURE A TO INDEPENDENT AUDITOR''S REPORT
Referred to in paragraph (1) under the heading of "Report on Other Legal and Regulatory Requirements" of our report of even date to the members of Ruchi Infrastructure Limited on the standalone financial statements for the year ended 31st March, 2016.
i. In respect of its Fixed Assets :
a. The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets.
b. As explained to us, the fixed assets of the Company 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 between the book records and the physical inventory have been noticed. In our opinion, the frequency of verification is reasonable.
c. According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
ii. In respect of its Inventories:
The inventories has been physically verified by the Management during the year. In our opinion, the frequency of verification is reasonable and no material discrepancies were noticed.
iii. According to the information and explanations given to us, the Company has granted unsecured loans to one company covered in the register maintained under section 189 of the Companies Act, 2013. The company has not granted any loans secured or unsecured to firms, LLPs or other parties covered in the register maintained under section 189 of the Companies Act, 2013. In respect of the aforesaid loans granted :
a. The terms and conditions of the grant of such loans are not prejudicial to the company''s interest;
b. The party has repaid the principal amount as stipulated and have also been regular in the payment of interest to the company;
c. There is no amount overdue for more than 90 days and no balance is outstanding as at the year end.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made and guarantee given. The company has not provided any security in terms of section 185 and 186 of the Act.
v. In our opinion and according to the information and explanations given to us, the Company has not accepted deposits from the public within the meaning of Section 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the Rules, framed there under. As informed to us no Order has been passed by the Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other Tribunal.
vi. We have broadly reviewed the cost records maintained by the Company pursuant to the rules made by the Central Government under sub-section (1) of Section 148 of the Companies Act, 2013 and are of the opinion that prima facie the prescribed records have been maintained. We have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.
vii. In respect of Statutory dues :
a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion the Company is generally regular in depositing undisputed statutory dues including provident fund, employee''s state insurance, income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues with the appropriate authorities. There were no undisputed statutory dues in arrears, as at 31st March, 2016 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 dues of sales tax, value added tax, income tax, service tax, duties of customs, duties of excise which have not been deposited with appropriate authorities on account of any dispute except as follows :
Name of the Statute |
Nature of Dues |
(Amount in lakhs) |
Related Period |
Forum where dispute is pending |
Sales Tax / VAT Acts |
Sales Tax /Vat |
4,28,515 |
2007-2008 |
M.P.Commercial tax appellate board |
Sales Tax / VAT Acts |
Sales Tax /Vat |
4,73,681 |
2011-2012 |
Jt. Commissioner of Commercial Taxes, Mangalore |
Sales Tax / VAT Acts |
Sales Tax /Vat |
3,54,273 |
2009-2010 |
Addl. Commissioner of Commercial taxes, Indore |
Central Excise & Service Tax Act |
Service Tax |
2,80,29,281 |
2009-2010 to 2013-14 |
Appeal at CESTAT , New Delhi |
Central Excise & Service Tax Act |
Service Tax |
1,63,82,196 |
2014-15 |
The Commissioner Indore |
Central Excise & Service Tax Act |
Service Tax |
1,60,52,075 |
2009-2012 |
The Commissioner Indore |
Income Tax Act |
Income Tax |
32,97,742 |
2007-2008 to 2009-10 |
CIT ( Appeals) Mumbai |
Income Tax Act |
Income Tax |
41,09,017 |
2012-2013 |
CIT ( Appeals) Mumbai |
viii. According to the records of the company examined by us and as per the information and explanations given to us, the Company has not defaulted in repayment of loans and borrowings to a financial institution, bank or government as on the balance sheet date. The Company has not issued any debenture.
ix. In our opinion and according to the information and explanations given to us, the company has not raised money by way of initial public offer or further public offer (including debt instruments) and In our opinion and according to the information and explanations given to us, the term loans obtained during the year have been applied for the purpose for which they were obtained.
x. During the course of our examination of the books of account and records of the Company, carried out in accordance with the generally accepted auditing practices in India and according to the information and explanations given to us, we have neither come across any instance of material fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the management.
xi. According to the information and explanations give to us and based on our examination of the records of the Company, the Company has paid / provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
xii. In our opinion and according to information and explanation given to us, the company is not a Nidhi Company therefore, the provision of para 3 (xii) of the Order is not applicable to the company.
xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
xiv. According to the information and explanations given to us and based on our examination of the records of the company, the company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year, therefore the provision of para 3 (xiv) of the Order is not applicable to the company.
xv. In our opinion and according to the information and explanations given to us, the company has not entered into any noncash transactions with directors or persons connected with him during the year, hence the provision of para 3 (xv) of the Order is not applicable to the company.
xvi. The company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934 therefore, the provision of para 3 (xvi) of the Order is not applicable to the company for the year under audit.
Annexure B To the Independent Auditor''s Report of even date on the Standalone Financial Statements of Ruchi Infrastructure Limited
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 Ruchi Infrastructure Limited ("the Company") 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 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, 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 ASHOK KHASGIWALA & CO.,
Chartered Accountants
(Firm Reg. No. 0743C)
Place : Mumbai CA Ashok Khasgiwala
Date : 27.05.2016 Partner
Mar 31, 2015
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of
Ruchi Infrastructure Limited ("The Company") which comprises the
Balance Sheet as at 31st March, 2015, the Statement of Profit and Loss
and the Cash Flow Statement for the year then ended and a summary of
significant accounting policies and other explanatory information.
Management's Responsibility for the Standalone Financial Statements
The Company Board of Directors is responsible for the matters stated in
section 134(5) of the Companies Act, 2013 (the Act) with respect to the
preparation of these standalone financial statements that give a true
and fair view of the financial position, financial performance and cash
flows of the company in accordance with the accounting principles
generally accepted in India, 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 judgment and
estimates that are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls, that were
operating effectively for ensuring the accuracy and completeness of the
accounting records, relevant to the preparation and presentation of the
financial statements that give a true and fair view and are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these standalone
financial statements based on our audit.
We have taken into account the provision of the Act, the accounting and
auditing standard and matters which are required to be included in the
audit report under the provision of the Act and the Rules made
thereunder.
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 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
whether the Company has in place an adequete internal financial control
system over financial reporting and the operating effectiveness of such
controls. An audit also includes evaluating the appropriateness of
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 accounting principles
generally accepted in India, of the state of affairs of the company as
at 31st March, 2015, and its profit 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, 2015 ("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
statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
2. As required by section 143 (3) of the Act, we report that:
a) we have sought and obtained all the information and explanations,
which to the best of our knowledge and belief were necessary for the
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 and proper returns adequate for the purposes of our audit have
been received from the branches not visited by us.
c) The Balance Sheet, the Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account and with the returns received from the branches not visited by
us.
d) In our opinion, the aforesaid standalone financial statement 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 2015 taken on records 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.
f) 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 be 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 statement  refer note 29 to the
financial statement;
ii. The Company did not have any long term contract including
derivative contract for which there were any material foreseeable
losses.
iii. There has been no delay in transferring amounts, required to be
transferred , to the Investor Education and Protection Fund by the
company.
ANNEXURE TO INDEPENDENT AUDITOR'S REPORT
Referred to in paragraph (1) under the heading of "Report on Other
Legal and Regulatory Requirements" of our report of even date to the
members of Ruchi Infrastructure Ltd. on the financial statements for
the year ended March 31, 2015.
i. In respect of its Fixed Assets :
a. The Company is maintaining proper records showing full particulars
including quantitative details and situation of its fixed assets.
b. As explained to us, the fixed assets of the Company 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 between the book
records and the physical inventory have been noticed. In our opinion,
the frequency of verification is reasonable.
ii. In respect of its Inventories:
a. The inventories have been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
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. On the basis of our examination of inventory records, in our
opinion, the Company is maintaining proper records of inventories. As
explained to us, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
iii. According to the information and explanations given to us, the
Company has not granted any loan secured or unsecured to companies,
firms or other parties covered in the register maintained under section
189 of the Companies Act, 2013. Hence the provisions of clauses iii
(a) and iii (b) of the said Order are not applicable to the company.
iv. In our opinion and according to the information and explanations
given to us, there is adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory and fixed assets and for the sale of goods
and services. Further, on the basis of our examination of the books and
records of the Company and according to the information and
explanations given to us, we have not observed any continuing failure
to correct major weakness in internal control system in respect of
these areas.
v. In our opinion and according to the information and explanations
given to us, the Company has not accepted deposits within the meaning
of section 73 to 76 or any other relevant provisions of the Companies
Act, 2013 and the rules, framed there under. Hence the provisions of
clauses (v) of the Order is not applicable to the company for the year
under audit.
vi. We have broadly reviewed the cost records maintained by the Company
pursuant to the rules made by the Central Government under sub-section
(1) of Section 148 of the Companies Act, 2013 and are of the opinion
that prima facie the prescribed records have been maintained. We have,
however, not made a detailed examination of the cost records with a
view to determine whether they are accurate or complete.
vii. In respect of Statutory dues :
a) According to the information and explanations given to us and the
records of the Company examined by us, in our opinion the Company is
generally regular in depositing undisputed statutory dues including
provident fund, employee's state insurance, income tax, sales tax,
service tax, wealth tax, duty of customs, duty of excise, value added
tax, cess and any other statutory dues with the appropriate
authorities. There were no undisputed statutory dues in arrears, as at
31st March, 2015 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 dues of sales tax, value added tax, income tax, service tax, duties
of customs, wealth tax, duties of excise have not been deposited with
appropriate authorities on account of any dispute except as follows :
Name of the Statute Nature of Dues Amount involved
Rs.
The Sales Tax Act Sales Tax /Vat 3,54,273
Central Excise &
Service Tax Act Service Tax 63,74,687
Central Excise & Service Tax 1,17,88,834
Service Tax Act
The Income Tax Act Income Tax 32,97,742
The Income Tax Act Income Tax 41,09,017
Name of the Statute Period ot which Forum where dispute is
pending
amount relates
The Sales Tax Act 2009-2010 Addl Commissioner of
Commercial taxes, Indore
Central Excise & Service
Tax Act 2009-2010 Additional Commissioner,
Indore
Central Excise & Service
Tax Act 2011-2012 Additional Commissioner,
Indore
& 2012-2013
The Income Tax Act 2007-2008 CIT Appeals Mumbai
to 2009-2010
The Income Tax Act 2012-2013 CIT Appeals Mumbai
c) There has been no delay in transferring amounts, as required to be
transferred, to the Investor Education and Protection Fund by the
Company in accordance with the relevant provisions of the Companies
Act, 1956 (1 of 1956) and rules made there under.
viii. The Company does not have accumulated losses as at 31st March
2015 and it has not incurred any cash losses during the financial year
covered by our audit and the immediately preceding financial year.
ix. According to the records of the Company examined by us and as per
the information and explanations given to us, the Company has not
defaulted in repayment of dues to a Financial Institutions or Banks as
at 31st March 2015 or debenture holders.
x. The Company has not given any guarantee for loans taken by Others
from any Bank or financial institution.
xi. In our opinion and according to the information and explanations
given to us, the term loans have been applied for the purposes for
which they were obtained.
xii. During the course of our examination of the books of account and
records of the Company, carried out in accordance with the generally
accepted auditing practices in India and according to the information
and explanations given to us, we have neither come across any instance
of material fraud on or by the Company, noticed or reported during the
year, nor have we been informed of such case by the management.
For ASHOK KHASGIWALA & CO.,
Chartered Accountants
(Firm Reg. No. 0743C)
CA Ashok Khasgiwala
Place : Mumbai Partner
Date :30th May, 2015 M.No. 70288
Mar 31, 2014
We have audited the accompanying financial statements of Ruchi
Infrastructure Limited ("The Company") which comprise the Balance Sheet
as at 31st March, 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''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and the 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'') read with the
General Circular 15/2013 dated 13th September, 2013 of the Ministry of
Corporate Affairs in respect of section 133 of the Companies Act, 2013.
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.
Auditor''s Responsibility
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 depends 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, 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 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.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the accompanying financial statements give
the information required by the Act in the manner so required and give
a true and fair view in conformity with accounting principles generally
accepted in India:
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
ii. in the case of the Statement of Profit and Loss, of the Profit of
the Company for the year ended on that date; and
iii. in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order 2003 (as
amended), issued by the Central Government of India in terms of Sub
Section (4A) of Section 227 of the Companies Act, 1956, 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 and proper returns adequate for the purposes of our audit have
been received from the branches not visited by us;
c) The Balance Sheet, the Statement of Profit and Loss and Cash Flow
Statement dealt with by this report are in agreement with the books of
account and with the returns received from the branches not visited by
us;
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting standards referred to in
Section 211 (3C) of the Companies Act, 1956 read with the General
Circular 15/2013 dated 13th September, 2013 of the Ministry of
Corporate Affairs in respect of section 133 of the Companies Act, 2013;
e) On the basis of written representations received from the directors,
as on 31st March, 2014 and taken on record by the Board of Directors
none of the directors is disqualified as on 31st March, 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 INDEPENDENT AUDITORS'' REPORT
Referred to in paragraph (1) under the heading of "Report on Other
Legal and Regulatory Requirements" of our report of even date :
i. In respect of its Fixed Assets :
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 and there is a regular program of verification which,
in our opinion, is reasonable having regard to the size of the Company
and the nature of its fixed assets. No material discrepancies were
noticed on such verification.
c. During the year, the Company has not disposed off a substantial
part of its fixed assets and we are of the opinion that the going
concern status of the company is not affected.
ii. In respect of its Inventories:
a. The Inventories have been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
b. In our opinion, 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, the Company is maintaining proper records of
inventory. As explained to us, there were no material discrepancies
noticed on physical verification of inventories as compared to the book
records.
iii. a. According to the information and explanations given to us, and
in our opinion the Company has not granted any loan secured or
unsecured to company, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956. Hence the
provisions of clauses iii(b), iii (c) and iii(d) of the said Order are
not applicable to the Company.
b. According to the information and explanations given to us, and in
our opinion the Company has not taken any loan secured or unsecured
from company, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Hence the provisions of
clauses iii(f) and iii(g) of the said Order are not applicable to the
Company.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory and fixed assets and for the sale of goods
and services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system in respect of these areas.
v. a. According to the information and explanations given to us, we are
of the opinion that the particulars of contract or arrangements that
need to be entered into the register maintained under section 301 of
the Companies Act, 1956 have been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of the rupees five
lakhs in respect of each party during the year, have been made at
prices which appear 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
to which the provisions of section 58A, 58AA or any other relevant
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975 apply.
vii. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii. We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules 2011
prescribed by the Central Government under Section 209 (1)(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
ix. a) The Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employee''s state insurance, income
tax, sales tax, service tax, wealth tax, custom duty, excise duty, cess
and other material statutory dues applicable to it. There were no
arrears, as at 31st March, 2014 for a period of more than six months
from the date they became payable.
b) In our opinion and according the information and explanations given
to us and the records of the Company examined by us, the particulars of
dues of sales tax, entry tax, customs duty, excise duty, service tax
and income tax which have not been deposited with appropriate
authorities on account of any disputes as at 31st March, 2014 are as
under :
Name of the Nature of Amount Period to which Forum where
Statute Dues Involved (Rs.) amount relates dispute is
pending
The Sales
Tax Act Sales Tax/
VAT 33,51,405 2002-2003 to
2003-2004 Jt Comm
Commercial
Taxes,
Hyderabad
The Sales
Tax Act Sales Tax/
VAT 6,91,53,119 2002-2003 High Court
( A.P)
Hyderabad
The Sales
Tax Act Sales Tax/
VAT 44,82,290 2003-2004 Dy
Commiss-
ioner,
Kanpur
The Sales
Tax Act Sales Tax/
VAT 8,78,530 2003-2004 &
2008-2009 Joint
Commiss-
ioner
Appeal,
Kanpur
The Sales
Tax Act Sales Tax/
VAT 4,65,401 2008-2009 &
2009-2010 Sales Tax
Tribunal,
Kanpur
The Sales
Tax Act Sales Tax/
VAT 72,304 2003-2004 Commercial
Tax Officer,
Cuttack
The Sales
Tax Act Sales Tax/
VAT 1,11,572 2005-2006 Asst
Commiss-
ioner,
Cuttack
The Sales
Tax Act Sales Tax/
VAT 17,82,958 2007-2008 Commiss-
ioner,
Cuttack
The Sales
Tax Act Entry Tax 7,82,788 2007-08 &
2009-2010 Addl
Commiss-
ioner of
Commercial
taxes,
Indore
The Sales
Tax Act Sales Tax/
VAT 3,53,79,329 2001-2002 &
2002-2003 High Court
(T.N.)
Chennai
Customs Act Customs Duty 72,51,340 2002-2003 High Court
( A.P)
Hyderabad
Customs Act Customs Duty 65,07,702 2006-2007 CESTAT,
Bangalore
Customs Act Customs Duty 2,11,90,804 2001-2002 High Court
(Kerala)
Cochin
Central
Excise &
Service
Tax Act Excise Duty 13,58,100 2012-13 Commiss-
ioner
Appeal,
Vizag
Central
Excise &
Service
Tax Act Excise Duty 14,89,019 2004-2005 CESTAT,
Bangalore
Central
Excise &
Service
Tax Act Excise Duty 5,42,045 2004-2005 High Court
( A.P)
Hyderabad
Central
Excise &
Service
Tax Act Excise Duty 18,54,983 2008-2009 to
2012-2013 Additional
Commiss-
ioner, Vizag
Central
Excise & Service Tax 1,45,88,768 2009-2010,
2011-12 CESTAT
New Delhi
Service
Tax Act &2012-2013
Central
Excise &
Service
Tax Act Service Tax 35,74,753 2010-2011 Commiss-
ioner
Appeal,
Indore
The Income
Tax Act Income Tax 32,97,742 2007-2008 to CIT
(Appeals)
Mumbai
2009-2010
x. The company does not have accumulated losses as at 31st March,
2014. The company has not incurred cash losses during the year under
audit and in the immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
financial institution or bank as at Balance Sheet date. The company has
not issued any debenture.
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 (Auditor''s Report) Order, 2003 are not applicable to the
Company.
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 Report) Order,
2003 are not applicable to the Company.
xv. In our opinion and according to the information and explanations
given to us, and the representations made by the management, the
company has not given any guarantee for loan taken by others from any
bank or financial institution.
xvi. According to the information and explanations given to us and on
an overall examination of the balance sheet of the Company we report
that the term loans have been applied for the purpose it was raised.
xvii. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that no funds raised on short term basis have been utilised
for long term purposes.
xviii.According to the information and explanations given to us, the
Company has not made preferential allotment of shares to parties or
Companies covered in the register maintained under section 301 of the
Act during the year.
xix. The Company has not issued any debenture.
xx. The Company has not raised money by public issues during the year.
xxi. During the course of our examination of the books of account and
records of the Company, carried out in accordance with the generally
accepted auditing practices in India and according to the information
and explanations given to us, we have not come across any instance of
material fraud on or by the Company noticed or reported during the
year, nor have we been informed of such case by the management.
For ASHOK KHASGIWALA & CO.,
Chartered Accountants
(Firm Reg. No. 0743C)
CA Ashok Khasgiwala
Place : Camp Mumbai Partner
Date : May 30, 2014 M.No. 70288
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statement of Ruchi
Infrastructure Limited ("The 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''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and the 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 (Âthe 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.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with 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 depends on the auditor''s judgement, 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.
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 accounting principles generally accepted in
India:
i. in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2013;
ii. in the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
iii. 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 2003 (as
amended), issued by the Central Government of India in terms of sub
section (4A) of Section 227 of the Companies Act, 1956, 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 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 appears from our examination of those
books and proper returns adequate for the purposes of our audit have
been received from the branches not visited by us;
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 and with the returns received from the branches not visited by
us;
d) In our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting standards referred to in
Section 211 (3C) 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.
ANNEXURE TO INDEPENDENT AUDITORS'' REPORT
(Referred to in paragraph (1) under the heading of "Report on Other
Legal and Regulatory Requirements" of our report of even date)
i. In respect of its Fixed Assets :
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 and there is a regular program of verification which,
in our opinion, is reasonable having regard to the size of the Company
and the nature of its fixed assets. No material discrepancies were
noticed on such verification.
c. During the year, the Company has not disposed off a substantial
part of fixed assets and we are of the opinion that the going concern
status of the company is not affected.
ii. In respect of its Inventories:
a. The Inventories have been physically verified by the management. In
our opinion the frequency of verification is reasonable.
b. In our opinion, 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, the Company is maintaining proper records of
inventory. As explained to us, there were no material discrepancies
noticed on physical verification of inventories as compared to the book
records.
iii. a. According to the information and explanations given to us, and
in our opinion the Company has not granted any loan secured or
unsecured to company, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956. Hence 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 in
our opinion the Company has not taken any loan secured or unsecured
from company, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956. Hence the provisions of
clauses iii(f) and iii(g) of the Order are not applicable to the
company.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory, fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system in respect of these areas.
v. a. According to the information and explanations given to us, we are
of the opinion that the particulars of contract or arrangements that
need to be entered into the register maintained under section 301of the
Companies Act, 1956 have been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value of the rupees five
lakhs in respect of each party during the year, have been made at
prices which appear 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 public to
which the provisions of section 58A, 58AA or any other relevant
provisions of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules, 1975 apply.
vii. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii. We have broadly reviewed the cost records maintained by the
Company pursuant to the Companies (Cost Accounting Records) Rules 2011
prescribed by the Central Government under Section 209 (1)(d) of the
Companies Act, 1956 and are of the opinion that prima facie the
prescribed cost records have been maintained. We have, however, not
made a detailed examination of the cost records with a view to
determine whether they are accurate or complete.
ix. a) The Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employee''s state insurance, income
tax, sales tax, service tax, wealth tax, custom duty, excise duty, cess
and other statutory dues applicable to it. There were no arrears, as at
31st March, 2013 for a period of more than six months from the date
they became payable.
b) In our opinion and according the information and explanation given
to us, the statutory dues which have not been deposited with
appropriate authorities on account of any disputes are as under :
Name of the Nature of Amount
Statute Dues Involved (Rs.)
The Sales Tax Act Sales Tax/ VAT 1,03,60,314
The Sales Tax Act Sales Tax/ VAT 33,51,405
The Sales Tax Act Sales Tax/ VAT 6,91,53,119
The Sales Tax Act Sales Tax/ VAT 44,82,290
The Sales Tax Act Sales Tax/ VAT 8,78,530
The Sales Tax Act Sales Tax/ VAT 4,65,401
The Sales Tax Act Sales Tax/ VAT 72,304
The Sales Tax Act Sales Tax/ VAT 78,675
The Sales Tax Act Sales Tax/ VAT 1,11,572
The Sales Tax Act Sales Tax/ VAT 17,82,958
The Sales Tax Act Sales Tax/ VAT 3,54,273
The Sales Tax Act Sales Tax/ VAT 3,55,32,882
Customs Act Customs Duty 72,51,340
Customs Act Customs Duty 65,07,702
Customs Act Customs Duty 2,11,90,804
Central Excise & Excise Duty 14,89,019
Service Tax Act
Central Excise & Excise Duty 5,42,045
Service Tax Act
Central Excise & Excise Duty 18,54,983
Service Tax Act
Central Excise & Service Tax 1,81,63,521
Service Tax Act
The Income Tax
Act Income Tax 55,61,878
The Income Tax
Act Income Tax 32,97,742
Name Period to which Forum where
amount relates dispute is pending
The Sales Tax Act 2001-2002 to
2005-2006 Sales Tax Appellate
Tribunal, Vizag
The Sales Tax Act 2002-2003 to
2003-2004 Jt Comm Commercial
Taxes, Hyderabad
The Sales Tax Act 2002-2003 High Court (A.P) Hyderabad
The Sales Tax Act 2003-2004 Dy Commissioner, Kanpur
The Sales Tax Act 2003-2004 &
2008-2009 Joint Commissioner Appeal, Kanpur
The Sales Tax Act 2008-2009 &
2009-2010 Sales Tax Tribunal, Kanpur
The Sales Tax Act 2003-2004 Commercial Tax Officer, Cuttack
The Sales Tax Act 2004-2005 Sales Tax Tribunal, Cuttack
The Sales Tax Act 2005-2006 Asst Commissioner, Cuttack
The Sales Tax Act 2007-2008 Asst Commissioner, Cuttack
The Sales Tax Act 2009-2010 Addl Commissioner of
Commercial taxes, Indore
The Sales Tax Act 2001-2002 &
2002-2003 High Court (T.N.) Chennai
The Sales Tax Act 2002-2003 High Court (A.P) Hyderabad
The Sales Tax Act 2006-2007 CESTAT, Bangalore
The Sales Tax Act 2001-2002 High Court (Kerala) Cochin
The Sales Tax Act 2004-2005 CESTAT, Bangalore
The Sales Tax Act 2004-2005 High Court (A.P) Hyderabad
The Sales Tax Act 2008-2009 to
2012-2013 Additional Commissioner, Vizag
The Sales Tax Act 2009-2010 to
2012-2013 Additional Commissioner, Indore
The Sales Tax Act 2006-2007 For Rectification with Dy Comm
The Sales Tax Act 2007-2008 to
2009-2010 CIT (Appeals) Mumbai
x. The company does not have accumulated losses as at March 31, 2013.
The company has not incurred cash losses during the year under audit
and in the immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to any
financial institution or bank. The company has not issued any
debenture.
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 (Auditor''s Report) Order, 2003 are not
applicable to the Company.
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 Report) Order,
2003 are not applicable to the Company.
xv. In our opinion and according to the information and explanations
given to us, and the representations made by the management, the
company has not given any guarantee for loan taken by others from any
bank or financial institution.
xvi. The company has not raised any term loan during the year under
audit.
xvii. According to the information and explanations given to us and on
an overall examination of the Balance Sheet of the Company, we are of
the opinion that no funds raised on short term basis have been utilised
for long term purposes.
xviii. According to the information and explanations given to us, the
Company has not made preferential allotment of shares to parties or
Companies covered in the register maintained under section 301 of the
Act during the year.
xix. The Company has not issued any debenture.
xx. The Company has not raised money by public issues during the year.
xxi. During the course of our examination of the books of account and
records of the Company, carried out in accordance with the generally
accepted auditing practices in India and according to the information
and explanations given to us, we have not come across any instance of
fraud on or by the Company noticed or reported during the year, nor
have we been informed of such case by the management.
For ASHOK KHASGIWALA & CO.,
Chartered Accountants.
(Firm Reg. No. 0743C)
CA Ashok Khasgiwala
Place: Camp Mumbai Partner
Date : May 30, 2013 M.No. 070288
Mar 31, 2012
1. We have audited the attached Balance Sheet of Ruchi Infrastructure
Limited as at March 31, 2012, the Statement of Profit and Loss 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 (as
amended), issued by the Central Government of India in terms of Sub
Section (4A) of Section 227 of the Companies Act, 1956, 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 in paragraph 3
above, 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 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 appears from our examination of those
books and proper returns adequate for the purposes of our audit have
been received from the branches not visited by us;
c) The Balance Sheet, the 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, the Statement of Profit and Loss
and Cash Flow Statement dealt with by this report are prepared in
compliance with the Accounting standards referred to in Section 211
(3C) of the Companies Act, 1956;
e) On the basis of written representations received from the directors,
as on March 31, 2012 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on March 31, 2012
from being appointed as a director in terms of clause (g) of sub
section (1) of section 274 of the Companies Act, 1956;
f) 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 accounting principles generally
accepted in India;
i. in the case of the Balance Sheet of the state of affairs of the
Company as at March 31, 2012;
ii. in the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
iii. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO AUDITORS' REPORT
Referred to in paragraph 3 of our report of even date.
i. In respect of its Fixed Assets :
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b. As per the information given to us, the fixed assets are physically
verified by the management according to a phased programme designed to
cover all the items over a period which, in our opinion, is reasonable
having regard to the size of the Company and the nature of its fixed
assets. No material discrepancies were noticed on such verification.
c. During the year, the Company has not disposed off a substantial
part of fixed assets and we are of the opinion that the going concern
status of the company is not affected.
ii. In respect of Inventories:
a. The Inventories have been physically verified by the management. In
our opinion the frequency of verification is reasonable.
b. In our opinion, 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. The Company is maintaining proper records of inventory. As
explained to us, there were no material discrepancies noticed on
physical verification of inventories as compared to the book records.
iii. a. According to the information and explanations given to us, the
Company has not granted any loan secured or unsecured to companies,
firms or other parties covered in the register maintained under section
301 of the Companies Act, 1956. Hence 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, the Company
has not taken any loan secured or unsecured from companies, firms or
other parties covered in the register maintained under section 301 of
the Companies Act, 1956. Hence the provisions of clauses iii(f) and
iii(g) of the Order are not applicable to the company.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory, fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system in respect of these areas.
v. a. According to the information and explanations given to us, we
are of the opinion that the particulars of contract or arrangements
that need to be entered into the register maintained under section
301of the Companies Act, 1956 have been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of the rupees five lakhs in
respect of each party during the year, have been made at prices which
appear reasonable having regard to prevailing market prices at the
relevant time.
vi. According to the information and explanations given to us, the
Company has not accepted any deposits from public to which the
provisions of section 58A, 58AA or any other relevant provisions of the
Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules,
1975 apply.
vii. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii. We have broadly reviewed the books of accounts and records in
respect of manufacturing of vegetable refined oils and wind power
generation maintained by the Company pursuant to the Companies (Cost
Accounting Records) Rules 2011 prescribed by the Central Government
under Section 209 (1)(d) of the Companies Act, 1956 and are of the
opinion that prima facie the prescribed cost records have been
maintained. We have, however, not made a detailed examination of the
cost records with a view to determine whether they are accurate or
complete.
ix. a) The Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employee's state insurance, income
tax, sales tax, service tax, wealth tax, custom duty, excise duty, cess
and other material statutory dues applicable to it. There were no
arrears, as at March 31, 2012 for a period of more than six months from
the date they became payable.
b) According to the records of the company and information and
explanation given to us, the disputed statutory dues including
provident fund, sales tax, income tax, custom duty, wealth tax, service
tax, excise duty and cess which have not been deposited with
appropriate authorities are as under:
Name of the Nature of Amount Period to
which Forum where
Statute dispute Involved
(Rs.) amount
relates dispute is
pending
Central
Excise & Excise Duty 14,89,019 2004-05 CESTAT, Bangalore
Service Tax
Central
Excise & Excise Duty 5,42,045 2004-05 High Court (A.P)
Service Tax
The Sales
Tax Act Sales Tax 36,48,855 2005-06 Deputy Commissioner
(Appeal) Vizag
The Sales
Tax Act Sales Tax 33,51,405 2002-03 & Sales Tax Appellate
Tribunal, Vizag
2003-04
The Sales
Tax Act Sales Tax 6,91,53,119 2002-03 High Court (A.P)
The Sales
Tax Act Sales Tax 3,55,32,882 2001-02 &
2002-03 High Court Chennai
The Sales
Tax Act Sales Tax 41,65,896 2009-10 Deputy Commissioner
(Appeal)
Gawhati
The Sales
Tax Act Sales Tax 17,82,958 2007-08 & Addl Commissioner of
2008-09 Commercial Tax,
Cuttack
The Sales
Tax Act Sales Tax 58,30,901 2003-04 Dy Commissioner of
Commercial
2008-09 &
2009-10 Tax,Kanpur
The Sales
Tax Act Entry Tax 3,54,273 2009-10 Additional Comm of
Commercial
Taxes, Indore
The Income
Tax Act Income Tax 55,61,878 2006-07 For Rectification
with
Dy Commissioner
The Income
Tax Act Income Tax 29,31,553 2008-09 CIT (Appeals) Mumbai
The Income
Tax Act Income Tax 2,84,621 2009-10 CIT (Appeals) Mumbai
The Income
Tax Act Income Tax 81,568 2007-08 CIT (Appeals) Mumbai
Customs Act Customs Duty 41,31,222 2002-03 High Court (A.P)
Customs Act Customs Duty 51,94,647 2006-07 CESTAT, Bangalore
Customs Act Customs Duty 1,20,228 2005-06 CESTAT, Bangalore
Customs Act Customs Duty 2,31,747 2005-06 CESTAT, Bangalore
Customs Act Customs Duty 17,06,061 2004-05 CESTAT, Bangalore
Customs Act Customs
Duty 1,14,04,956 2004-05 Dy Comm of Customs,
Kakinada
Customs Act Customs
Duty 2,11,90,804 2001-02 High Court, Kerala
x. The company has no accumulated losses as at March 31, 2012. The
company has not incurred cash losses during the year under audit and in
the immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution or bank or debenture/bond holders.
xii. 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 (Auditor's Report) Order, 2003 are not applicable to the
Company.
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 Report) Order,
2003 are not applicable to the Company.
xv. According to the information and explanations given to us, and the
representations made by the management, we are of the opinion that the
company has not given any guarantee for loan taken by others from any
bank or financial institution.
xvi. In our opinion and according to the information and explanations
given to us, the term loan raised during the year have been applied for
the purpose it is raised.
xvii. According to the information and explanations given to us and on
an overall examination of the Financial Statements of the Company, we
report that funds raised on short term basis have not been utilised for
long term purposes.
xviii. According to the information and explanations given to us, the
Company has not made preferential allotment of shares to parties or
Companies covered in the register maintained under section 301 of the
Act.
xix. According to the information and explanations given to us, during
the period covered by our audit report, the Company has not issued any
debentures.
xx. The Company has not raised money by public issues during the year.
xxi. During the course of our examination of the books of account and
records of the Company, carried out in accordance with the generally
accepted auditing practices in India and according to the information
and explanations given to us, we have not come across any instance of
fraud on or by the Company noticed or reported during the year, nor
have we been informed of such case by the management.
For ASHOK KHASGIWALA & CO.,
CHARTERED ACCOUNTANTS.
(Firm Reg. No. 0743C)
CA Ashok Khasgiwala
Place: Mumbai Partner
Date : August 14, 2012 M.No. : 70288
Mar 31, 2011
1. We have audited the attached Balance Sheet of Ruchi Infrastructure
Limited as at March 31, 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 (Auditors' Report) Order 2003 (as
amended), issued by the Central Government of India in terms of Sub
Section (4A) of Section 227 of the Companies Act, 1956, 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 in paragraph 3
above, 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 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 appears from our examination of those
books and proper returns adequate for the purposes of our audit have
been received from the branches not visited by us;
c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement
dealt with by this report are in agreement with the books of account;
d) In our opinion, the Balance Sheet, Profit & Loss Account and Cash
Flow Statement dealt with by this report are prepared in compliance
with the Accounting standards referred to in Section 211 (3C) of the
Companies Act, 1956;
e) On the basis of written representations received from the directors,
as on March 31, 2011 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on March 31, 2011
from being appointed as a director in terms of clause (g) of sub
Section (1) of Section 274 of the Companies Act, 1956;
f) (i) Interest Expenditure of Rs.10,08,11,303/- (Previous year
Rs.6,14,04,720/-) has been netted of against the interest income,
instead of including the same under financial expenses. The said
disclosure however has no impact on the profit for the year.
(ii) The opening balances are taken from the accounts, for the year
ended March 31, 2010 audited by M/s. M. M. Singla & Co., Mumbai and
same are relied upon by us.
g) 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 accounting principles generally
accepted in India;
i. in the case of the Balance Sheet of the state of affairs of the
Company as at March 31, 2011;
ii. in the case of the Profit and Loss Account, of the Profit for the
year ended on that date; and
iii. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
ANNEXURE TO AUDITORS' REPORT
Referred to in paragraph 3 of our report of even date. i. In respect
of its Fixed Assets :
a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
b. As per the information given to us, the fixed assets are physically
verified by the management according to a phased programme designed to
cover all the items over a period which, in our opinion, is reasonable
having regard to the size of the Company and the nature of its fixed
assets. No material discrepancies were noticed on such verification.
c. During the year, the Company has not disposed off a substantial
part of fixed assets and we are of the opinion that the going concern
status of the company is not affected.
ii. In respect of Inventories :
a. The Inventories have been physically verified by the management. In
our opinion the frequency of verification is reasonable.
b. In our opinion, 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. The Company is maintaining proper records of inventory. As
explained to us, there were no material discrepancies noticed on
physical verification of inventories as compared to the book records.
iii. a. According to the information and explanations given to us, the
Company has not granted any loans secured or unsecured to companies,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956. Hence 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, the
Company has not taken any loan secured or unsecured from companies,
firms or other parties covered in the register maintained under Section
301 of the Companies Act, 1956. Hence the provisions of clauses iii(f)
and iii(g) of the Order are not applicable to the Company.
iv. In our opinion and according to the information and explanations
given to us, there are adequate internal control systems commensurate
with the size of the Company and the nature of its business with regard
to purchases of inventory, fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system in respect of these areas.
v. a. According to the information and explanations given to us, we are
of the opinion that the particulars of contract or arrangements that
need to be entered into the register maintained under Section 301 of
the Companies Act, 1956 have been so entered.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements and exceeding the value of the rupees five lakhs in
respect of each party during the year, have been made at prices which
appear reasonable having regard to prevailing market prices at the
relevant time.
vi. According to the information and explanations given to us, the
Company has not accepted any deposits from public to which the
provisions of Section 58A, 58AA or any other relevant provisions of the
Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules,
1975 apply.
vii. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii. We have broadly reviewed the books of accounts and records in
respect of manufacturing of vegetable refined oils and wind power
generation maintained by the Company pursuant to the rules made by the
Central Government of India for maintenance of cost records under
Section 209 (1 )(d) of the Companies Act, 1956. We are of the opinion
that prima facie the prescribed accounts and records have been made and
maintained. However, we have not, made a detailed examination of such
accounts and records with a view to determine whether they are accurate
or complete.
ix. a) The Company is generally regular in depositing with appropriate
authorities undisputed statutory dues including provident fund,
investor education protection fund, employee's state insurance, income
tax, sales tax, service tax, wealth tax, custom duty, excise duty, cess
and other material statutory dues applicable to it. There were no
arrears, as at March 31, 2011 for a period of more than six months from
the date they became payable.
b) According to the records of the company and information and
explanation given to us, the disputed statutory dues including
provident fund, sales tax, income tax, custom duty, wealth tax, service
tax, excise duty and cess which have not been deposited with
appropriate authorities are as under:
Name of the Nature of Amount Period to
which Forum where
statute dues Involved
(Rs.) amount
relates dispute is pending
Central Excise & Excise Duty 14,89,019 2004-05 CESTAT Bangalore
Service Tax
Central Excise & Excise Duty 5,42,045 2004-05 High Court A.P.
Service Tax
The Sales Tax Act Sales Tax 4,21,97,395 2003-04,
2004-05 Dy. Commissioner
(Appeal)
& 2005-06 Vizag
The Sales Tax Act Sales Tax 33,51,405 2002-03 &
2003-04 Sales Tax Appellate
Tribunal Vizag
The Sales Tax Act Sales Tax 6,91,53,119 2002-03 High Court A.P.
The Sales Tax Act Sales Tax 3,55,32,882 2001-02 &
2002-03 High Court Chennai
The Sales Tax Act Sales Tax 41,65,896 2009-10 Dy. Commissioner
(Appeal)
The Sales Tax Act Sales Tax 1 7,82,958 2007-08 & Add. Commissioner
2008-09 of Commercial Tax
Cuttack
The Sales Tax Act Sales Tax 69,12,126 2003-04,
2008-09 Dy. Commissioner
of Tax Kanpur
& 2009-10
Income Tax
Act, 1961 Income Tax 55,61,878 2006-07 For Rectification
with Dy.
Commissioner
Customs Act Customs Duty 41,31,222 2002-03 High Court A.P.
Customs Act Customs Duty 51,94,647 2006-07 CESTAT Bangalore
Customs Act Customs Duty 1,20,228 2005-06 CESTAT Bangalore
Customs Act Customs Duty 2,31,747 2005-06 CESTAT Bangalore
Customs Act Customs Duty 17,06,061 2004-05 CESTAT Bangalore
Customs Act Customs
Duty 1,14,04,956 2004-05 Dy. Comm. of
Customs Kakinada
Customs Act Customs
Duty 2,11,90,804 2001-02 High Court Kerala
x. The company has no accumulated losses as at March 31, 2011. The
Company has not incurred cash losses during the year under audit and in
the immediately preceding financial year.
xi. In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to a
financial institution or bank or debenture/bond holders.
xii. 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.
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 Report) Order,
2003 are not applicable to the Company.
xv. According to the information and explanations given to us, and the
representations made by the management, we are of the opinion that the
terms and condition of the guarantee given to banks for and on behalf
of loan taken by subsidiaries are not prejudicial to the interest of
the Company. There is no Corporate Guarantee outstanding as at the year
end.
xvi. In our opinion and according to the information and explanations
given to us, the Company has not raised any term loan during the year.
xvii. According to the information and explanations given to us and on
an overall examination of the Financial Statements of the Company, we
report that funds raised on short term basis have not been utilised for
long term purposes.
xviii. According to the information and explanations given to us, the
Company has not made preferential allotment of shares to parties or
companies covered in the register maintained under Section 301 of the
Act.
xix. According to the information and explanations given to us, during
the period covered by our audit report, the Company has not issued any
debentures.
xx. The Company has not raised money by public issues during the year.
xxi. During the course of our examination of the books of account and
records of the Company, carried out in accordance with the generally
accepted auditing practices in India and according to the information
and explanations given to us, we have not come across any instance of
fraud on or by the Company noticed or reported during the year, nor
have we been informed of such case by the management.
For ASHOK KHASCIWALA & CO.,
CHARTERED ACCOUNTANTS.
(Firm Reg. No. 0743C)
CA Ashok Khasgiwala
Place: Mumbai Partner
Date : August 27, 2011 Membership No. 70288
Mar 31, 2010
We have audited the attached Balance Sheet of Ruchi Infrastructure Ltd.
as at 31st March, 2010 and also the Profit & Loss Account for the year
ended on that date, annexed thereto and Cash Flow Statement for the
year on that date. These financial statements are the responsibility of
the company management. Our responsibility is to express an opinion on
these financial statements based on our audit.
1. We conduct 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 misstatements. 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.
2. As required by the Companies (AuditorÃs Report) Order, 2003 issued
by the Central Government of India in terms of Section 227 (4A) of the
Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the Order.
3. 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.
4. In our opinion proper books of accounts as required by law have
been kept by the company so far as appears from our examination of such
books.
5. The Balance Sheet ,Profit & Loss Account and Cash Flow Statement
referred to in this report are in agreement with the books of account.
6. In our opinion, the Profit & Loss Account, Balance Sheet and Cash
Flow Statement comply with the mandatory accounting standards referred
to in subsection (3C) of section 211 of the Companies Act, 1956.
7. On the basis of written representations received from the Directors
of the Company and taken on record by the Board of Directors, we report
that no Directors are disqualified as at March 31st, 2010 from being
appointed as Director in terms of clause(g) of Sub-Section(I) of
section 274 of the Act 1956.
8. In our opinion and to the best of our information and according to
the explanations given to us, the said Balance Sheet, Profit & Loss
Account and Cash Flow Statement read with notes thereon give the
information required by the Companies Act, 1956 in the manner so
required and give a true and fair view:
i) In so far as it relates to the Balance Sheet of the State of affairs
of the Company as at 31st March, 2010
ii) In so far as it relates to the Profit & Loss Accounts of the Profit
for the year ended on that date and
iii) In so far as it relates to the Cash Flow Statement of the Cash
Flows for the year ended on that date.
ANNEXURE TO THE AUDITORS REPORT
1. a) The Company has maintained proper records showing full
particulars, including quantitative details and situation
of its fixed assets. The fixed assets of the company have been
physically verified by the management at reasonable intervals and no
material discrepancies between books records and physical inventory
were noticed.
b) There was no substantial disposal of fixed assets during the year.
2. a) In respect of inventory, physical verification has been
conducted by the management at reasonable intervals. The
procedure of physical verification of stocks followed by the management
are reasonable and adequate in relation to the size of the Company and
the nature of the business.
b) The discrepancies noticed on physical verification of stocks as
compared to book records were not material and have been properly dealt
with in the books of accounts.
3. a) The Company has not taken loan any loan from companies listed in
the Register maintained under section 301 of
the Companies Act, 1956.
b) The terms and conditions of loans granted by the Company to
companies, firms or other parties listed in the Register maintained
under Section 301 of the companies Act, 1956 are prima facie not
prejudicial to the interests of the Company.
4. There is an adequate internal control procedure commensurate with
the size of the company and nature of its business for purchase of raw
materials, stores, fixed assets and for sale of goods.
5. a) In our opinion and according to the information and explanations
given to us, the transactions that needed to be
entered in the register maintained under section 301 of the Companies
Act, 1956, have been so entered.
b) In our opinion and according to the information and explanations
given to us, having regard to the explanation that many of the items
are of a special nature and their prices cannot be compared with
alternative quotations, the transactions made in pursuance of contracts
or arrangements entered in the register maintained under section 301 of
the Companies Act. 1956 and exceeding the value of Rupees five lacs in
respect of any party during the year have been reasonable having regard
to the prevailing market prices at the relevant time.
6. According to the information and explanations given to us the
Company has not accepted any deposit from public to which provision of
section 58A and 58 AA of the Companies Act, 1956 and the rules made
thereunder apply.
7. In our opinion the Company has an internal audit system
commensurate with its size and the nature of its business.
8. We have broadly reviewed the books of account maintained by the
Company in respect of products where, pursuant to the Rules made by the
Central Government, the maintenance of cost records has been prescribed
under section 209(1)(d) of the Companies Act, 1956 and are of the
opinion that, prima facie, the prescribed accounts and records have
been made and maintained. We have not, however, made a detailed
examination of the records with a view to determining whether they are
accurate or complete.
9. a) According to the records of the Company,it is generally regular
in depositing undisputed statutory dues including
Provident Fund, Employees State Insurance, Income Tax, Sales Tax,
Customs Duty, Excise Duty and other statutory dues applicable to it
with the appropriate authorities. There are no undisputed statutory
dues outstanding as on 31st March, 2010 for a period of more than six
months from the date they became payable.
b) The following disputed amount as of 31st March, 2010 aggregating to
Rs.10,50,81,787/- on account of matters pending before the appropriate
authourities.
Name of the Nature of Forum where Years to which Amount disputed
statute dues dispute is
pending dispute relate Rs.
Customs Duty Customs
Duty High Court 2001-2002 2,11,90,804
Customs Duty Customs
Duty Appellete
Authoity 2002-2003 3,51,975
Sales Tax Sales Tax High Court 2002-2003 6,91,53,119
Sales Tax Sales Tax Appellate
Commissioner 2002-2003
2003-2004 70,06,285
2005-2006
Sales Tax Sales Tax Assessing Officer 2003-2004
2004-2005 53,48,540
Excise Duty Excise Duty Appellate
Commissioner 2004-2005 14,89,019
Excise Duty Excise Duty High Court 2004-2005 5,42,045
10. The Company does not have accumulated losses at the end of the
financial year and it has not incurred any cash losses in the current
and immediately preceding financial year.
11. According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
defaulted in repayment of dues to banks or financial institutions.
12. In our opinion and according to the explanations given to us, the
company has not granted loans and advances on the basis of security by
way of pledge of shares 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 (AuditorÃs Report) Order, 2003 are not applicable to the
Company.
14. The Company does not deal or trade in shares, securities,
debentures and other investments. Accordingly the provision of clause
4(xiv) of the Companies (AuditorÃs Report) Order, 2003 are not
applicable to the Company.
15. In our opinion, the terms and conditions on which the Company has
given guarantees for loans taken by a subsidiary from a bank are, prima
facie, not prejudicial to the interests of the Company.
16. In our opinion, the term loans raised during the year 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 and Cash Flows of the
Company, we report that the Company has not utilized funds raised on
short term basis for long term investment.
18. The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under section
301 of the Companies Act, paragraph 4(xviii) of the Order is not
applicable.
19. The Company did not issue any debentures during the year.
20. We have verified the end use of money raised by way of issue of
Foreign Currency Convertible Bonds as disclosed in the Notes to the
Accounts
21. According to the information and explanations given by the
Management, we report that, no fraud on or by the Company has been
noticed or reported during the course of our audit for the year ended
31st March,2010.
For M.M.Singla & Co.
Chartered Accountants
(MURLI M.SINGLA)
Proprietor
Membership No 40366
Place : Mumbai
Date : August 30, 2010
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