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Ruchi Infrastructure Ltd.

BSE: 509020 Sector: Industrials
NSE: RUCHINFRA ISIN Code: INE413B01023
BSE LIVE 15:40 | 18 Dec 4.35 0.16
(3.82%)
OPEN

4.25

HIGH

4.37

LOW

4.20

NSE 15:21 | 18 Dec 4.30 0.20
(4.88%)
OPEN

4.15

HIGH

4.30

LOW

3.90

OPEN 4.25
PREVIOUS CLOSE 4.19
VOLUME 1726
52-Week high 5.46
52-Week low 2.53
P/E
Mkt Cap.(Rs cr) 89
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 4.25
CLOSE 4.19
VOLUME 1726
52-Week high 5.46
52-Week low 2.53
P/E
Mkt Cap.(Rs cr) 89
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Ruchi Infrastructure Ltd. (RUCHINFRA) - Auditors Report

Company auditors report

To

The Members of

Ruchi Infrastructure Limited

Report on the Standalone Financial Statements

We have audited the accompanying Standalone financial statements of RuchiInfrastructure Limited ("The Company") which comprises the Balance Sheet as at31st March 2017 the Statement of Profit and Loss and the Cash Flow Statement for theyear then ended and a summary of significant accounting policies and other explanatoryinformation.

Management’s Responsibility for the Standalone Financial Statements

The Company’s Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 (the Act) with respect to the preparation of thesestandalone financial statement that give a true and fair view of the financial positionfinancial performance and cash flows of the company in accordance with the accountingprinciples generally accepted in India including the Accounting Standard specified underSection 133 of the Act read with rule 7 of the Companies (Accounts) Rules 2014. ThisResponsibility also includes maintenance of adequate accounting records in accordance withthe provision of the Act for safeguarding of the assets of the company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

Auditor’s Responsibility

Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.

We have taken into account the provision of the Act the accounting and auditingstandard and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by the Company’s Directors as well as evaluating theoverall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide 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 explanationsgiven to us the aforesaid Standalone financial statements give the information requiredby the Act in the manner so required and give a true and fair view in conformity withaccounting principles generally accepted in India of the state of affairs of the companyas at 31st March 2017 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 ("theOrder") issued by the Central Government of India in terms of sub section (11) ofsection 143 of the Act we give in the Annexure A statement on the matters specified inthe 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 bestof our knowledge and belief were necessary for the purpose of our audit.

b) In our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books and proper returns adequatefor 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 dealtwith by this report are in agreement with the books of account and with the returnsreceived from the branches not visited by us.

d) In our opinion the aforesaid standalone financial statements comply with theaccounting standards specified under section 133 of the act read with Rule 7 of theCompanies (Accounts) Rules 2014.

e) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of section164(2) of the Act.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B". g) With respect to the other matters to beincluded in the Auditor’s Report in accordance with Rule 11 of the Companies (Auditand Auditors) Rules 2014 read with Companies (Audit and Auditors) Amendment Rules 2017in our opinion and to be best of our information and according to the explanations givento us:

a. The company has disclosed the impact of pending litigations on its financialposition in its financial statement – refer note 29 to the financial statement;

b. The Company did not have any long term contract including derivative contract forwhich there were any material foreseeable losses.

c. There were no amount which required to be transferred to the Investor Educationand Protection Fund by the company.

d. The Company has provided requisite disclosures in the financial statements- refernote 37 as to holdings as well as dealings in Specified Bank Notes during the period from8th November 2016 to 30th December 2016. Based on audit procedures and relying on themanagement representation we report that the disclosures are in accordance with books ofaccount maintained by the Company.

For Ashok Khasgiwala & Co.
Chartered Accountants
(Firm Reg. No. 000743C)
CA Ashok Khasgiwala
Date : May 30 2017 (Partner)
Place : Mumbai M.No. 070288

ANNEXURE A TO INDEPENDENT AUDITOR’S REPORT

Referred to in paragraph (1) under the heading of "Report on Other Legal andRegulatory Requirements" of our report of even date to the members of RuchiInfrastructure Limited on the standalone financial statements for the year ended 31stMarch 2017.

i. In respect of its Fixed Assets : a. The Company is maintaining proper recordsshowing 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 themanagement during the year which in our opinion is reasonable having regard to the sizeof the Company and the nature of its assets. No material discrepancies between the bookrecords and the physical inventory have been noticed. In our opinion the frequency ofverification is reasonable. c. According to the information and explanations given to usand on the basis of our examination of the records of the Company the title deeds ofimmovable properties are held in the name of the Company. ii. In respect of itsInventories:

The inventories has been physically verified by the Management during the year. In ouropinion the frequency of verification is reasonable and no material discrepancies werenoticed. iii. According to the information and explanations given to us the Company hasgranted unsecured loans to two company covered in the register maintained under section189 of the Companies Act 2013. The company has not granted any loans secured or unsecuredto firms LLPs or other parties covered in the register maintained under section 189 ofthe Companies Act 2013. In respect of the aforesaid loans granted : a. The terms andconditions 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 andpayment of interest. iv. In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of section 185 and 186 of theAct with respect to the loans and investments made and guarantee given. The company hasnot provided any security in terms of section 185 and 186 of the Act.. v. In our opinionand according to the information and explanations given to us the Company has notaccepted deposits from the public within the meaning of Section 73 to 76 or any otherrelevant provisions of the Companies Act 2013 and the Rules framed there under. Asinformed to us no Order has been passed by the Company Law Board or National Company LawTribunal or Reserve Bank of India or any court or any other Tribunal. vi. We have broadlyreviewed the cost records maintained by the Company pursuant to the rules made by theCentral Government under sub-section (1) of Section 148 of the Companies Act 2013 and areof the opinion that prima facie the prescribed records have been made and maintained. Wehave however not made a detailed examination of the cost records with a view todetermine whether they are accurate or complete.

vii. In respect of Statutory dues : a) According to the information and explanationsgiven to us and the records of the Company examined by us in our opinion the Company isgenerally regular in depositing undisputed statutory dues including provident fundemployee’s state insurance income tax sales tax service tax duty of customs dutyof excise value added tax cess and any other statutory dues with the appropriateauthorities. There were no undisputed statutory dues in arrears as at 31st March 2017for a period of more than six months from the date they became payable. b) According tothe information and explanations given to us there are no dues of sales tax value addedtax income tax service tax duties of customs duties of excise which have not beendeposited with appropriate authorities on account of any dispute except as follows :

Name of the Statute Nature of Dues (Amount Related Forum where dispute is pending
in lakhs) Period
Sales Tax / VAT Acts Sales Tax /Vat 428515 2007-2008 M.P. Commercial tax appellate board
Sales Tax / VAT Acts Sales Tax /Vat 473681 2011-2012 Jt. Commissioner of Commercial
Taxes Mangalore
Sales Tax / VAT Acts Sales Tax /Vat 354273 2009-2010 Addl. Commissioner of Commercial
Taxes Indore
Sales Tax / VAT Acts Entry Tax 7053833 2013-2014 The High Court Kolkatta
Central Excise & Service Tax 28029281 2009-2010 Appeal at CESTAT
Service Tax Act to 2013-14 New Delhi
Central Excise & Service Tax 16492393 2014-15 The Commissioner Indore
Service Tax Act
Central Excise & Service Tax 16052075 2009-2012 The Commissioner Indore
Service Tax Act
Income Tax Act Income Tax 3297742 2007-2008 CIT (Appeals) Mumbai
to 2009-10

viii. According to the records of the company examined by us and as per the informationand explanations given to us the Company has not defaulted in repayment of loans andborrowings to a financial institution bank or government as on the balance sheet date.During the year the company has defaulted in repayment of borrowings to South Indian Bankamounting Rs688214351/- which has been made good by the company. The Company has notissued any debenture. ix. In our opinion and according to the information and explanationsgiven to us the company has not raised money by way of initial public offer or furtherpublic offer (including debt instruments) and

In our opinion and according to the information and explanations given to us the termloans obtained during the year have been applied for the purpose for which they wereobtained. x. During the course of our examination of the books of account and records ofthe Company carried out in accordance with the generally accepted auditing practices inIndia and according to the information and explanations given to us we have neither comeacross any instance of material fraud by the Company or on the company by the officers oremployees noticed or reported during the year nor have we been informed of such case bythe management. xi. According to the information and explanations given to us and based onour examination of the records of the Company the Company has paid / provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Act. xii. In our opinion andaccording to information and explanation given to us the company is not a Nidhi Companytherefore 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 ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards. xiv. According to the information and explanations given to us andbased on our examination of the records of the company the company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year therefore the provision of para 3 (xiv) of the Order is notapplicable to the company. xv. In our opinion and according to the information andexplanations given to us the company has not entered into any non-cash transactions withdirectors 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 beregistered under section 45-IA of the Reserve Bank of India Act 1934 therefore theprovision of para 3 (xvi) of the Order is not applicable to the company for the year underaudit.

For Ashok Khasgiwala & Co.
Chartered Accountants
(Firm Reg. No. 000743C)
CA Ashok Khasgiwala
Date : May 30 2017 (Partner)
Place : Mumbai M.No. 070288

Annexure B To the Independent Auditor’s Report of even date on the StandaloneFinancial Statements of Ruchi Infrastructure Limited

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financial reporting of RuchiInfrastructure Limited ("the Company") as of March 31 2017 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company’s policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company’s internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor’s judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany’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 financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For Ashok Khasgiwala & Co.
Chartered Accountants
(Firm Reg. No. 000743C)
CA Ashok Khasgiwala
Date : May 30 2017 (Partner)
Place : Mumbai M.No. 070288