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Ramky Infrastructure Ltd.

BSE: 533262 Sector: Infrastructure
NSE: RAMKY ISIN Code: INE874I01013
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OPEN 175.75
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VOLUME 9615
52-Week high 258.35
52-Week low 72.75
P/E 7.53
Mkt Cap.(Rs cr) 1,236
Buy Price 178.20
Buy Qty 1.00
Sell Price 178.90
Sell Qty 92.00
OPEN 175.75
CLOSE 176.90
VOLUME 9615
52-Week high 258.35
52-Week low 72.75
P/E 7.53
Mkt Cap.(Rs cr) 1,236
Buy Price 178.20
Buy Qty 1.00
Sell Price 178.90
Sell Qty 92.00

Ramky Infrastructure Ltd. (RAMKY) - Auditors Report

Company auditors report

To

The Members of Ramky Infrastructure Limited

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the accompanying standalone financial statements of RamkyInfrastructure Limited ("the Company") which includes 9 joint operationscomprising of the Standalone Balance Sheet as at 31st March 2021 the Standalone Statementof Profit and Loss (including Other Comprehensive Income) the Standalone Statement ofChanges in Equity and Standalone Cash Flow Statement for the year then ended and notes tothe standalone financial statements including a summary of significant accountingpolicies and other explanatory information.

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 Companies Act 2013 (the "Act") in the manner so required and give a trueand fair view in conformity with the accounting principles generally accepted in India ofthe state of affairs of the Company as at 31 March 2021 its profit including othercomprehensive income its changes in equity and its cash flows for the year ended on thatdate.

Basis of Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the audit of the standalone financialstatements section of our report. We are independent of the Company in accordance with theCode of Ethics issued by the Institute of Chartered Accountants of India (ICAI) togetherwith the ethical requirements that are relevant to our audit of the standalone financialstatements under the provisions of the Act and the Rules thereunder and we have fulfilledour other ethical responsibilities in accordance with these requirements and the ICAI'sCode of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion on the standalone financial statements.

Emphasis of Matter

Attention is invited to

a) Note 47 to the standalone financial statements in respect of existence of materialuncertainties over the relizability of certain contract assets and trade receivablesaggregating to Rs. 839.35 millions as at 31st March 2021 (Rs. 881.73 millions as on 31stMarch 2020) which are subject matters of arbitration proceedings / negotiations with thecustomers and contractors due to foreclosure of contracts and other disputes. Themanagement of the Company keeping in view the status of negotiations and the outcome ofarbitration proceedings on the basis of which steps to recover these amounts are currentlyin process is confident of recovering the aforesaid dues. In view of pending billing ofproject WIP / slow progress / termination of these projects and lack of other alternateaudit evidence to corroborate management's assessment of recoverability of these balanceswe are unable to comment on the extent to which these balances are recoverable.

Our opinion is not modified in respect of above matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current year.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Key Audit Matter Auditors' response
Foreseeable losses Evidence and historical information is considered to decide on the rationale and appropriateness of the estimates with respect to the costs to complete the project.
Management estimates the costs to complete the unexecuted portion of the contract and where it is probable that those costs exceed the revenue to be earned from such contracts a provision for such probable loss is created. The relevant covenants of the contract are verified to assess the unearned revenue from the project.
Revenue of the company is mainly from Construction Contracts. Revenue from these contracts are recognized over a period of time in accordance with the requirements of IND AS 115 Revenue from Contracts with Customers. Due to the nature of the contracts revenue recognition involves survey of work performed which involves significant judgments identification of contractual obligations and the Company's rights to receive payments for performance completed till date changes in scope and consequential revised contract price and recognition of the liability for loss making contracts/onerous obligations. Revenue recognition involves aforesaid significant judgement and estimation. We therefore determined this to be a key audit matter. Considering the historical information and evidence with respect to probability of incurring losses an appropriate provision is arrived.
Our audit procedures included but were not limited to:
• Reading the accounting policy for revenue recognition of the Company.
• Obtaining an understanding of the Company's processes and controls for revenue recognition process evaluating the key controls around such process.
• Performing tests of details on a sample basis and inspecting the underlying customer contracts and relevant supporting documents.
• Sample of revenue disaggregated by type and service offerings was tested with the performance obligation specified in the underlying contracts.
• Considering the terms of the contracts to determine the transaction price including any variable consideration to verify the transaction price used to compute revenue and to test the basis of estimation of the variable consideration.

Information Other than the Standalone Financial Statements and Auditor's Report Thereon

The Company's management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sAnnual Report but does not include the standalone financial statements consolidatedfinancial statements and our auditor's report thereon.

Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained in the audit or otherwise appears to be materially misstated. If based on thework we have performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact.

The Board's Report including its annexures is expected to be made available to us afterthe date of this auditor's report. We have nothing to report in this regard.

Management's Responsibility for the Standalone Financial Statements

The Company's management and Board of Directors are responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income changes in equity 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. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate accountingpolicies; making judgments and estimates that are reasonable and prudent; and designimplementation 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 standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

In preparing the standalone financial statements management and Board of Directors areresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes our opinion. Reasonable assuranceis a high level of assurance but is not a guarantee that an audit conducted in accordancewith SAs will always detect a material misstatement when it exists. Misstatements canarise from fraud or error and are considered material if individually or in theaggregate they could reasonably be expected to influence the economic decisions of userstaken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also;

Identify and assess the risks of material misstatement of the standalone financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances. Under section 143(3)(i) of theAct we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls system in place and the operating effectiveness ofsuch controls.

Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.

Evaluate the overall presentation structure and content of the standalone financialstatements including the disclosures and whether the standalone financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current year and are therefore the key audit matters. We describe these matters inour auditor's report unless law or regulation precludes public disclosure about the matteror when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Other Matters

We did not audit the financial statements of 7 joint operations whose annual financialstatements reflect total assets of Rs. 552.60 millions as at March 31 2021 revenues ofRs. 175.50 millions and net cash outflows of Rs. 4.37 millions for the year ended March31 2021 as considered in the standalone financial statements which have been audited bytheir respective independent auditors. The reports of such auditors on financialstatements and other financial information of these joint operations have been furnishedto us and our opinion on the standalone financial statements in so far as it relates tothe amounts and disclosures included in respect of these joint operations is based solelyon the report of such auditors and procedures performed by us as stated in paragraphabove.

The accompanying financial statements include the Company's share of total assets ofRs. 22.70 millions as at March 31 2021 revenues of Rs. 576.75 millions and net cashoutflows of Rs. 0.03 millions for the year ended March 31 2021 in respect 2 jointoperations based on their annual financial information which have not been audited bytheir auditors and have been furnished to us by the Company's management. Our opinion onthe standalone financial statements and our report in so far as it relates to theaforesaid joint operations is based solely on such unaudited management certifiedfinancial statements. According to the information and explanations given to us by themanagement such financial statements are not material to the Company.

Our opinion is not modified in respect of above matters.

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 subsection (11) of section 143 ofthe Act we give in the "Annexure A" a statement on the matters specified inparagraphs 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 purposes of our audit;

b) In our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

c) The Standalone Balance Sheet the Standalone Statement of Profit and Loss (includingOther Comprehensive Income) the Standalone Statement of Changes in Equity and theStandalone Cash Flow Statement dealt with by this report are in agreement with the booksof account;

d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act;

e) On the basis of the written representations received from the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 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 be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended in our opinionand to the best of our information and according to the explanations given to us theremuneration paid / provided by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act; and

h) 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending litigations on its financialposition in its standalone financial statements - Refer Note 41 to the standalonefinancial 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 includingderivative contracts; and

iii. There are no dues required to be transferred to the Investor Education andProtection Fund by the Company.

Annexure 'A' to the Independent Auditors' Report

The Annexure A referred to in Paragraph 1 under 'Report on Other Legal and RegulatoryRequirements' in our Independent Auditors' Report to the members of the Company for theyear ended 31st March 2021 we report

i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of property plant and equipment.

(b) The property plant and equipment were physically verified during the year by themanagement in accordance with a regular program of verification which in our opinion isreasonable having regard to the size of the Company and the nature of its assets.According to the information and explanations given to us the discrepancies noticed onsuch verification were not material.

(c) According to the information and explanations given to us the title deeds ofimmovable properties included in property plant and equipment are held in the name of theCompany.

ii) According to the information and explanations given to us the inventories werephysically verified during the year by the management at reasonable intervals and thediscrepancies noticed on such verification of the inventory as compared to book recordswere not material.

iii) According to the information and explanation given to us the Company has grantedinterest free unsecured loans to two subsidiary companies covered in the registermaintained under section 189 of the Act in respect of such loans;

(a) In our opinion the terms and conditions of the loans granted by the Company arenot prejudicial to the interest of the Company except in the case of interest freeunsecured loans granted to two subsidiary companies aggregating to Rs. 1807.82 millionas at 31st March 2021 having regard to the cost of funds to the Company which areprejudicial to the interest of the Company.

(b) The receipt of principal amount and interest wherever stipulated is regular otherthan an amount disclosed in (c) below. Further in case of interest free loan granted totwo subsidiary companies where the schedule of repayment of the principal and payment ofinterest has not been stipulated we are unable to comment as to whether repayments areregular.

(c) In case of loans carrying interest there is an overdue interest amounting to Rs.332.60 millions for more than 90 days. As per the information and explanations given tous the Company has made reasonable steps to recover overdue interest portion. Further incase of interest free unsecured loans granted to two subsidiary companies as the scheduleof repayment has not been stipulated we are unable to comment whether any amount isoverdue and whether any steps for recovery of the principal is required.

According to the information and explanations given to us apart from the above theCompany has not granted loans secured or unsecured to firms limited liabilitypartnerships or other parties covered in the register maintained under section 189 of theAct.

iv) In our opinion and according to the information and explanations given to us theCompany has not given any loans or provided any guarantees or security to the partiescovered under Section 185 of the Act. Accordingly compliance under Section 185 of the Actis not applicable to the Company. According to the information and explanations given tous the provisions of Section 186 of the Act in respect of the loans given guaranteesgiven or securities provided are not applicable to the Company since it is covered as acompany engaged in business of providing infrastructural facilities. The Company hascomplied with the provisions of Section 186 of the Act with respect to the investmentsmade.

v) According to the information and explanations given to us the Company has notaccepted any deposits during the year within the meaning of section 73 to 76 of the Actand the Rules framed there under to the extent notified.

vi) We have broadly reviewed the cost records maintained by the Company pursuant to theRules made by the Central Government under section 148 (1) of the Act and are of theopinion that prima facie the prescribed accounts and records have been made andmaintained. We have however not made detailed examination of the records with a view todetermining whether they are accurate or complete.

vii) According to the information and explanations given to us in respect of statutorydues:

(a) According to information and explanations given to us and records of the Companyexamined by us amounts deducted/ accrued in the books of accounts in respect ofundisputed statutory dues including provident fund employees state insurance income taxsales tax service tax value added tax goods and services tax cess and other materialstatutory dues as applicable have been actually/regularly deposited with the appropriateauthorities and there have been delays in number of cases during the year. As perinformation and explanations given to us the Company did not have any dues on the accountof excise duty and customs duty. Details of undisputed dues in respect of works contracttax value added tax central sales tax and goods and services tax that were in arrearsfor a period of more than six months from the date they become payable are provided inAppendix - I.

(b) According to the information and explanations given to us and records of theCompany examined by us particulars of dues outstanding in respect of income-tax servicetax goods and services tax and value added tax which have not been deposited on accountof any dispute are given in Appendix - II to this report.

viii) In our opinion and according to the information and explanations given to us theCompany has not defaulted in the repayment of loans or borrowings to the financialinstitutions or banks. There are no loans or borrowings payable to Government anddebenture holders.

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) and term loans. Accordingly the provisions of clause 3 (ix) of the Order arenot applicable to the Company and hence not commented upon.

x) Based upon the audit procedures performed and the information and explanations givento us we report that no fraud by the Company or no material fraud on the Company by itsofficers or employees has been noticed or reported during the year.

xi) According to the information and explanations given to us the managerialremuneration has been paid / provided in accordance with the requisite approvals mandatedby the provisions of section 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 as prescribed under Section 406 of the Act. Accordinglythe provisions of clause 3 (xii) of the Order are not applicable to the Company.

xiii) In our opinion and according to the information and explanations provided to ustransactions with the related parties are in compliance with section 177 and 188 of theAct to the extent applicable. The details of related party transactions as required bythe applicable accounting standards have been disclosed in the notes to standalonefinancial statements.

xiv) According to the information and explanations given to us the Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year under review. Accordingly the provisions of clause3 (xiv) of the Order are not applicable to the Company and hence not commented upon.

xv) According to the information and explanations given to us the Company has notentered into any non-cash transactions with directors or persons connected with him.Accordingly the provisions of clause 3 (xv) of the Order are not applicable to theCompany and hence not commented upon.

xvi) In our opinion and according to the information and explanation given to us theCompany is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934 and accordingly the provisions of clause 3 (xvi) of the Order are notapplicable to the Company and hence not commented upon.

Appendix I as referred to in Para vii (a) of Annexure A to the Independent Auditor'sReport

Name of the statue Nature of the due Amount (Rs. in mn) Period to which it pertain
Andhra Pradesh VAT Act 2005 Value Added Tax(VAT) 15.72 2017-18
Chattisgarh Value Added Tax Works Contract Tax Deducted at source 1.38 2015-16
Madhya Pradhesh Value Added Tax Act Works Contract Tax Deducted at source 2.04 2015-16 to 2016-17
New Delhi Value Added Tax Act Works Contract Tax Deducted at source 3.88 2015-16 to 2016-17
Telangana Value Added Tax Act Works Contract Tax Deducted at source 0.33 2016-17
West Bengal Value Added Tax Act Works Contract Tax Deducted at source 2.36 2017-18
Central Sales Tax Act Karnataka Central Sales Tax Act 1.52 2015-16
Jammu & Kashmir Value added Tax Act Value Added Tax (VAT) 406.66 2017-18

Appendix II as referred to in Para vii (b) of Annexure A to the Independent Auditor'sReport

Name of the Statue Nature of the due Amount (Rs. in mn) Period to which it pertain Forum where dispute pending
Andhra Pradesh General sales Tax Act 1957 Tax 9.07 2002-03 The Deputy Commissioner Panjagutta
(4.53)*
Andhra Pradesh VAT Act2005 Tax and 56.90 2005-07 Sales Tax Appellete Tribunal Hyderabad
Penalty (61.74)*
Andhra Pradesh VAT Act2005 Tax 85.55 2007-09 Commercial Tax Officer SomajigudaHyderabad.
(12.87)*
Andhra Pradesh VAT Act2005 Tax 63.08 2010-11 High Court Andhra Pradesh and Telangana
Andhra Pradesh VAT Act2005 Tax 11.89 2007-09 Sales Tax Appellete Tribunal Hyderabad
(4.35)*
Bihar VAT Act 2005 Penalty 44.27 2010-12 DCCT(Appeal) Patna
Madhya Pradesh Value Added Tax 2002 Tax 35.62 2013-14 Appellate Tribunal Bhopal
(11.78)*
Maharashtra Value Added Tax Tax 44.43 2011-14 Maharastra Sales Tax Tribunal Mumbai
(7.90)*
West Bengal Value Added Tax2005 Tax 190.31 2005-13 The Additional Commissoner Commercial taxes Kolkata
(0.36)*
West Bengal Value Added Tax2005 Tax 7.91 2010-12 West Bengal Taxation Tribunal (appeal to be filed)
West Bengal Value Added Tax2005 Tax 19.93 2010-13 West Bengal Commercial Tax Appellate 8< Revision Board
(1.00)*
West Bengal Value Added Tax2005 Tax 16.26 2013-14 Joint Commissioner Appeals west Bengal Commercial Tax Appellate 8. Revision Board
West Bengal Value Added Tax2005 Tax 3.04 2014-15 Sr.JCCT(Appeal)
West Bengal Value Added Tax2005 Tax 8.84 2015-16 Sr.JCCT(Appeal)
(0.95)*
West Bengal Value Added Tax2005 Tax 1.05 2016-17 Joint Commissioner Appeals west Bengal Commercial Tax Appellate & Revision Board
(0.16)*
Delhi Value Added Tax2004 Tax 0.39 2013-14 The Department of Trade and TaxesNCT of Delhi
Telangana Tax On Entry Of Goods Into Local Areas Act2001 Tax 0.49 2011-12 Additional Commissioner (Appeals) Hyderabad
(0.172)*
Telangana Tax On Entry Of Goods Into Local Areas Act2001 Tax 4.12 2012-13 Additional Commissioner (Appeals) Hyderabad
(1.440)*
Telangana Tax On Entry Of Goods Into Local Areas Act2001 Tax 13.15 2013-14 Additional Commissioner (Appeals) Hyderabad
(4.601)*
Telangana Tax On Entry Of Goods Into Local Areas Act2001 Tax 0.43 2015-16 Additional Commissioner (Appeals) Hyderabad
(0.150)*
Telangana Tax On Entry Of Goods Into Local Areas Act2001 Tax 0.15 2016-17 Additional Commissioner (Appeals) Hyderabad
(0.054)*
Uttar Pradesh Value Added Tax 2005 Tax - 2012-14 Case remanded back to Original Assessing Authority (Joint Commissioner Sonbadra) for fresh assessment

* indicates pre-security deposits with respective authorities

Appendix II as referred to in Para vii(b) of Annexure A to the Independent Auditor'sReport

Name of the Statue Nature of the due Amount (Rs. in mn) Period to which it pertain Forum where dispute pending
Finance Act 1994 Tax 30.50 2004-05 to 2006-07 Central Excise & Service Tax Appellate Tribunal (CESTAT) Bengaluru
Finance Act 1994 Tax 7.98 2004-05 to 2006-07 Central Excise & Service Tax Appellate Tribunal
(0.80)* (CESTAT) Kolkata
Finance Act 1994 Tax 10.45 2007-08 to 2009-10 Central Excise & Service Tax Appellate Tribunal
(4.00)* (CESTAT) Bengaluru
Finance Act 1994 Tax 442.35 2004-05 to 2007-08 Central Excise & Service Tax Appellate Tribunal
(2.30)* (CESTAT) Bengaluru
Finance Act 1994 Tax 142.61 01-04-2007 to Central Excise & Service Tax Appellate Tribunal
(2.00)* 30-09-2008 (CESTAT) Kolkata
Finance Act 1994 Tax 17.90 2005-07 Central Excise & Service Tax Appellate Tribunal (CESTAT) Kolkata
Finance Act 1994 Tax 17.33 01-07-2005 to 30-06-2010 Central Excise & Service Tax Appellate Tribunal
(1.30)* (CESTAT) Hyderabad
Finance Act 1994 Tax 42.86 01.04.2007 to 31.03.2010 Commissioner of Customs Central Excise & Service Tax (CCCE&S) Tamilnadu
Finance Act 1994 Tax 1.92 01.04.2010 to 31.03.2011 Commissioner of Service tax Tamilnadu-35
Finance Act 1994 Tax 138.72 01.04.2007 to 31.03.2012 Commissioner of Service tax Andhra Pradesh
Finance Act 1994 Tax 6.82 01.04.2010 to 31.03.2011 Commissioner of Service tax Tamilnadu
Finance Act 1994 Tax 21.75 01.10.2007 to 31.03.2012 Commissioner of Service tax Andhra Pradesh
(1.63)*
Finance Act 1994 Tax 27.07 2009-10 to 2011-12 Central Excise & Service Tax Appellate Tribunal (CESTAT) Hyderabad
(2.03)*
Finance Act 1994 Tax 26.09 2010-11 to 2012-13 Hyderabad II Service Tax Commissionerate
Finance Act 1994 Tax 12.99 2010-11 to 2011-12 Central Excise & Service Tax Appellate Tribunal (CESTAT) Kolkata
(0.487)*
Finance Act 1994 Tax 27.56 2011-12 to 2013-14 Commissioner of Service tax Telangana
Finance Act 1994 Tax 1.99 2011-12 to 2013-14 Asst. Commissioner (Audit) Service Tax Cell Visakhapatnam
Finance Act 1994 Tax 5.24 2011-12 to 2013-14 Additional Commissioner of Customs Central Excise & Service Tax (CCCE&S) Tamilnadu
Finance Act 1994 Tax 0.26 2004-05 to 2006-07 Commissioner of Customs Central Excise & Service Tax (CCCE&S)
Finance Act 1994 Tax 0.38 2007-08 Commissioner of Customs Central Excise & Service Tax (CCCE&S) (Appeals) Chennai.
Finance Act 1994 Tax 1.34 2010-11 to 2012-13 Commissioner of Customs Central Excise & Service Tax (CCCE&S) (Appeals) Hyderabad.
Finance Act 1994 Tax 9.85 2007-08 Central Excise & Service Tax Appellate Tribunal (CESTAT) Bengaluru
Finance Act 1994 Tax 48.41 01.08.2012 to 31.03.2015 Central Excise & Service Tax Appellate Tribunal (CESTAT) Hyderabad
(3.63)*
Finance Act 1994 Tax 9.38 2015-16 Additional Commissioner of Central Tax & Customs Hyderabad
Finance Act 1994 Tax 41.94 1-06-2007 to 31-05-2008 High Court of Andhra Pradesh
(10.00)*
Finance Act 1994 Tax 19.35 01.06.2008 to 31.03.2009 High Court of Andhra Pradesh
Finance Act 1994 Tax 23.00 01.04.2009 to 31.03.2010 Commissioner of Customs Central Excise & Service Tax (CCCE&S)Hyderabad
Finance Act 1994 Tax 6.38 01.04.2010 to 31.03.2011 Commissioner of Customs Central Excise & Service Tax (CCCE&S)Hyderabad
Uttar Pradesh Value Added Tax 2005 Tax 4.65 01.04.2011 to 31.03.2012 Commissioner of Customs Central Excise & Service Tax (CCCE&S)Hyderabad
Finance Act 1994 Tax 1.91 01.04.2009 to 31.03.2010 Commissioner of Customs Central Excise & Service Tax (CCCE&S)Hyderabad
Finance Act 1994 Tax 6.54 01.04.2010 to 31.03.2011 Commissioner of Customs Central Excise & Service Tax (CCCE&S)Hyderabad
Finance Act 1994 Tax 6.11 01.04.2011 to 31.03.2012 Commissioner of Customs Central Excise & Service Tax (CCCE&S)Hyderabad
Finance Act 1994 Tax 3.58 01.04.2016 to 30.09.2016 The Deputy Commissioner of Central Tax Ameerpet GST Division Hyderabad
Finance Act 1994 Tax 1.56 01.10.2016 to 30.06.2017 The Deputy Commissioner of Central Tax Ameerpet GST Division Hyderabad
Finance Act 1994 Tax 1.81 01.04.2014 to 31.03.2017 The Deputy Commissioner of Central Tax Ameerpet GST Division Hyderabad
Finance Act 1994 Tax 1.54 01.04.2014 to 30.06.2017 The Deputy Commissioner of Central Tax Ameerpet GST Division Hyderabad

* indicates pre-security deposits with respective authorities

Annexure 'B' to the Independent Auditor's

Report of even date on the standalone financial statements of Ramky InfrastructureLimited

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 RamkyInfrastructure Limited ("the Company") as of 31st March 2021 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 Reporting("the Guidance Note") issued by the Institute of Chartered Accountants of India.These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Act.

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 and the Standards on Auditing issued by the Institute of CharteredAccountants of India and deemed to be prescribed under section 143(10) of the Act 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 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 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 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 standalone financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because ofthe 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 31st March 2021 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. However the Company needs to improve its systems with respect torealisation of receivables including retention monies other contract receivables etc.

For M V Narayana Reddy & Co.
Chartered Accountants
Firm Registration No. 002370 S
Sd/- M V Narayana Reddy
Partner
Membership No. 028046
UDIN: 21028046AAAAAE4752
Place: Hyderabad
Date : 14-06-2021

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