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SRS Real Infrastructure Ltd.

BSE: 533305 Sector: Others
NSE: N.A. ISIN Code: INE953I01023
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NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 9.73
PREVIOUS CLOSE 9.30
VOLUME 1750
52-Week high 35.25
52-Week low 8.08
P/E
Mkt Cap.(Rs cr) 366
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 9.73
CLOSE 9.30
VOLUME 1750
52-Week high 35.25
52-Week low 8.08
P/E
Mkt Cap.(Rs cr) 366
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

SRS Real Infrastructure Ltd. (SRSREALINFRA) - Auditors Report

Company auditors report

To

The Members

SRS Real Infrastructure Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of SRS RealInfrastructure Limited ("the Company") which comprise the balance sheet asat March 312016 the statement of profit and loss cash flow statement for the year thenended and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparationand presentation of these Standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities selection and application of appropriate accounting policies makingjudgments and estimates that are reasonable and prudent and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand 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 statementsbased on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards 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 undersub- section 10 of section 143 of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures 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 the accounting policies used and the reasonableness ofthe accounting 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

Basis for Qualified Opinion

Deposit Repayment Reserve Account (maintained as fixed deposits) at the close of theyear required to be maintained under Section 73(2)(c) of the Companies Act 2013("the Act") equal to 15% of the deposits maturing in the next financial yearwas found short by '45 Lacs.

We are unable to comment on the financial implications in respect of the same.

Qualified Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis for QualifiedOpinion paragraph above the aforesaid Standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 312016 and its loss and its cash flows for the yearended on that date.

Emphasis of Matter

During the year 2015-16 M/s SRS Healthcare & Research Centre Limited has availedloan of '60 Crores (against sanctioned limit of '115 Crores) from three banks on firstPari- Passu charge on all current assets present & future and entire assets financedout of banks’ finance present & future of M/S SRS Healthcare & ResearchCentre Limited. Further the company has provided collateral security of its propertynamely SRS IT Tower located at 14/5 Mathura Road Kh no 44/22/2 44/23 & 24/1 NearMewla Maharajpur Metro Station Faridabad Haryana-121003 on first pari- passu basis toabove three banks against the above loan part of which has been allotted to its customerson long term lease basis.

Our opinion is not qualified in respect of the above matter.

Other Matter

In terms of the Joint Responsibility Statement (as per Standards on Auditing-299)forming part of the Engagement Letter:

- Audit of Trading segment and part of Un-allocable segment whose financial statementsreflect of total assets of '3628151980/- as at March 312016 and total revenues of'7141748456/- for the year ended on that date has been carried out by M/s. SVP &Associates.

- Audit of Real Estate segment and part of Un-allocable segment whose financialstatements reflect of total assets of ' 2607446176/- as at March 312016 and totalrevenues of '458952446/- for the year ended on that date has been carried out by M/s.S.S. Kothari Mehta & Co.

Our opinion is not qualified in respect of the above matter.

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" a statement on thematters specified in paragraphs 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) Except for the possible effects of the matter described in the Basis for QualifiedOpinion paragraph above in our opinion proper books of account as required by law havebeen kept by the Company so far as it appears from our examination of those books.

(c) The Balance Sheet the Statement of Profit and Loss and the Cash Flow Statementdealt with by this report are in agreement with the books of account.

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

(e) On the basis of written representations received from the directors as on March312016 taken on record by the Board of Directors none of the directors is disqualifiedas on March 312016 from being appointed as a director in terms of sub-section 2 ofsection 164 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 be included in the Auditor’s Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

i. The company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note 33 to the financial statements.

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts. Companydoesn’t having any derivative contracts.

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

For S S Kothari Mehta & Co. For SVP & Associates
Chartered Accountants Chartered Accountants
Firm Reg. No. 000756N Firm Reg. No. 003838N

(Harish Gupta)

Partner Membership No. 098336

Place: Faridabad Date : June 8 2016

The Annexure as referred in paragraph (1) ‘Report on Other Legal and RegulatoryRequirements of our

Independent Auditor’s Report to the members of SRS Real infrastructure Limited onthe standalone financial statements for the year ended March 312016 we report that:

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

(b) The fixed assets have been physically verified by the management according to theprogramme of periodical verification in phased manner which in our opinion is reasonablehaving regard to the size of the Company and the nature of its fixed Assets. Thediscrepancies if any noticed on such physical verification have been properly dealt within the books of accounts.

(c) The title deeds of immovable properties are held in the name of the Company exceptin the following

Particular Total No. of Cases Gross Book Value

(Rs.)

Net Book Value

(Rs.)

Land 1 416535 416535

ii. We have been explained by the management that the inventory have been physicallyverified at reasonable intervals during the year. As far as we can ascertain and accordingto information and explanations given to us the discrepancies whenever material noticedon such physical verification of inventory as compared to book records were properly dealtwithin the books of accounts.

iii. The Company has not granted any loans secured or unsecured to companies firmsLimited Liability partnerships or other parties covered in the Register maintained undersection 189 of the Act. Accordingly the provisions of clause 3 (iii) (a) to (c) of theOrder are not applicable to the Company.

iv. According to the information and explanations given to us the company havecomplied with the provisions of section 185 and 186 of the Act with respect to the loansinvestments made.

v. In our opinion and according to the information and explanations given to us theCompany has complied with the directives issued by the Reserve Bank of India and theprovisions of Section 73 to 76 or any other relevant provisions of the Act and the rulesframed there under with regard to deposits accepted from the public except DepositRepayment Reserve Account (maintained as Fixed deposits) at the close of the yearrequired to be maintained under Section 73(2)(c) of the Companies Act 2013 ("theAct") equal to 15% of the deposits maturing in the next financial year was foundshort by '45 Lacs. We have been informed that no order has been passed by Company LawBoard or National Company Law Tribunal or Reserve Bank of India or any Court or any otherTribunal in this regard.

vi. We have broadly reviewed the books of account maintained by the company pursuant tothe rules made by Central Government for the maintenance of cost records under section148(1) of the Act in respect to the Company’s products to which said rules are madeapplicable and are of the opinion that prima facie the prescribed records have been madeand maintained. We have however not made a detailed examination of the said records with aview to determine whether they are accurate or complete.

vii. (a) The Company has been generally regular in depositing with appropriateauthorities undisputed statutory dues including Provident Fund Employees’ StateInsurance Sales Tax Value Added Tax Cess etc. though there has been slight delays in afew cases. In case of TDS and service tax company is not regularly in depositingundisputed statutory dues with appropriate authorities and there have been significantdelays in a large number of cases. As explained to us the company did not have any dues onaccount of duty of custom and duty of excise.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees’ state insurance income tax salestax service tax value added tax cess and any other material statutory dues were inarrears as at March 312016 for a period of more than six months from the date they becomepayable.

(b) According to the information and explanation given to us there were no dues inrespect of income tax sales tax service tax or value added tax which have not beendeposited on account of any dispute.

viii. In our opinion on the basis of audit procedures and according to the informationand explanations given to us the company has not defaulted in repayment of loan orborrowings to any banks and financial institutions as at balance sheet date except in thebelow mentioned cases :-

In the Case of Principal Payment:-

Name of the Bank Amount of Default as at the balance sheet date (Amount in ' Period of Default Remarks if any
Canara Bank 105000000/- 1 Day

Unpaid up to the date of signing of balance sheet

Indian Overseas Bank 112500000/- 1 Day
Central Bank of India 9000000/- 1 Day Out of which '5688487/- has been paid up to the date of signing of balance sheet
Central Bank of India 9000000/- 5 Days Subsequently Paid on January 2016.

In the Case of Interest Payment:-

Name of the Bank Amount of Default as at the balance sheet date Period of Default Remarks if any
(Amount in ')
Canara Bank 38853792/- 1 to 50 Days Out of which '34235621/- paid up to March 312016 and '4450000/- has been paid up to the date of signing of balance sheet.
Indian Overseas bank 4796770/- 31 Days This Amount has been paid up to the date of signing of balance sheet.

As per information and explanation given to us the company had not taken any loan fromthe government. Further

the company had not issued any debenture.

ix. According to the information and explanations given to us the company has notraised moneys by way of initial public offer or further public offer (including debtinstruments) during the year. The term loans have been applied for the purpose for whichthey were raised.

x. According to the information and explanations given to us no instance of fraud bythe Company or on the Company by its officers or employees has been noticed or reportedduring the year.

xi. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/ provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.

xii. In our opinion and according to the information and explanations given to us theCompany is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is notapplicable.

xiii. According to the information and explanations given to us and based on ourexamination of the record of the company transactions with the related parties are incompliance with section 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 and based on ourexamination of the record of the company the company has not made any preferentialallotment or private placement of shares or fully or partly convertible debenture duringthe year.

xv. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly paragraph 3(xv) ofthe Order is not applicable.

xvi. The Company is not required to be registered under Section 45-IA of the ReserveBank of India Act 1934.

For S S Kothari Mehta & Co. For SVP & Associates
Chartered Accountants Chartered Accountants
Firm Reg. No. 000756N Firm Reg. No. 003838N

"Annexure B" to the Independent Auditor’s Report of even date on theStandalone Financial Statements of SRS Real infrastructure Limited.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act") as referred to in paragraph 2(f) of‘Report on Other Legal and Regulatory Requirements’ section

We have audited the internal financial controls over financial reporting of SRS RealInfrastructure Limited ("the Company") as of March 312016 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 (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including 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 accordance with the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. 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 judgement 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 controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised 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.

Qualified Opinion

According to the information and explanations given to us and based on our audit thefollowing material weaknesses have been identified as at March 312016:

a) Company needs to strengthened the process with respect to vendor selection andanalysis of quotation in relation to purchases of inventory

A 'Material Weakness ' is a deficiency or a combination of deficiencies in internalfinancial control over financial reporting such that there is a reasonable possibilitythat a material misstatement of the company's annual or interim financial statement willnot be prevented or detected on a timely basis.

In our opinion except for the possible effects of the material weaknesses describedabove on the achievement of the objectives of the control criteria the Company hasmaintained in all material aspects adequate internal financial controls over financialreporting and such internal controls over financial were operating effectively as at March31 2016 based on the internal control over financial reporting criteria established bythe Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India.

We have considered the material weaknesses identified and reported above in determiningthe nature timing and extent of audit tests applied in our audit of the March 312016standalone financial statements of the Company and these material weaknesses does notaffect our opinion on the standalone financial statements of the Company.

For S S Kothari Mehta & Co. For SVP & Associates
Chartered Accountants Chartered Accountants
Firm Reg. No. 000756N Firm Reg. No. 003838N