RattanIndia Enterprises Ltd.
|BSE: 534597||Sector: Infrastructure|
|NSE: RTNINDIA||ISIN Code: INE834M01019|
|BSE 00:00 | 18 Jun||30.20||
|NSE 00:00 | 18 Jun||30.10||
|Mkt Cap.(Rs cr)||4,174|
|Mkt Cap.(Rs cr)||4174.40|
RattanIndia Enterprises Ltd. (RTNINDIA) - Auditors Report
Company auditors report
TO THE MEMBERS OF RATTANINDIA INFRASTRUCTURE LIMITED REPORT ON THEAUDIT OF THE STANDALONE FINANCIAL STATEMENTS Opinion
1. We have audited the accompanying Standalone Financial Statements of RattanIndiaInfrastructure Limited (the Company') which comprise the Balance Sheet asat 31 March 2020 the Statement of Profit and Loss (including the Statement of OtherComprehensive Income) the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and summary of the significant accounting policies and otherexplanatory information (hereinafter referred to as the "Standalone financialstatements").
2. In our opinion and to the best of our information and according tothe explanations given to us the aforesaid Standalone Financial Statements give theinformation required by the Companies Act 2013 as amended ( the Act') in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India including Indian Accounting Standards (IndAS') specified under section 133 of the Act of the state of affairs (financialposition) of the Company as at 31 March 2020 and its Loss (financial performanceincluding other comprehensive income) its cash flows and the changes in equity for theyear ended on that date.
Basis for Opinion
3. We conducted our audit of the Standalone Financial Statements inaccordance with the Standards on Auditing (SAs) as specified under section 143(10) of theAct. Our responsibilities under those standards are further described in theAuditor's Responsibilities for the Audit of the Standalone Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India (ICAI')together with the ethical requirements that are relevant to our audit of the StandaloneFinancial Statements under the provisions of the Act and the rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode 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.
Information Other than the Standalone Financial Statements andAuditor's Report Thereon
4. The Company's management and Board of Directors are responsiblefor the preparation of the other information. Other Information comprises the informationincluded in the Annual Report but does not include the Standalone Financial Statementsand our auditor's report thereon.
5. Our opinion on the Standalone Financial Statements does not coverthe other information and we do not express any form of assurance conclusion thereon.
6. In connection with our audit of the Standalone Financial Statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the Standalone FinancialStatements or our knowledge obtained during the course of our audit or otherwise appearsto be materially misstated.
7. If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.
Responsibilities of Management's for the Standalone FinancialStatements
8. The Company's Management and Board of Directors are responsiblefor the matters stated in section 134(5) of the Act with respect to the preparation ofthese Standalone Financial Statements that give a true and fair view of the state ofaffairs (financial position) Profit or Loss (financial performance including othercomprehensive income) changes in equity and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Ind AS specifiedunder section 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the Standalone Financial Statements that give a true and fair view and arefree from material misstatement whether due to fraud or error.
9. In preparing the Standalone Financial Statements management andBoard of Directors are responsible for assessing the Company's ability to continue asa going concern disclosing as applicable matters related to going concern and using thegoing concern basis of accounting unless management either intends to liquidate theCompany or to cease operations or has no realistic alternative but to do so.
10. The Board of Directors is also responsible for overseeing theCompany's financial reporting process.
Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements
11. Our objectives are to obtain reasonable assurance about whether theStandalone Financial Statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance but is not aguarantee that an audit conducted in accordance with Standards on Auditing will alwaysdetect a material misstatement when it exists. Misstatements can arise from fraud or errorand are considered material if individually or in the aggregate they could reasonably beexpected to influence the economic decisions of users taken on the basis of theseStandalone Financial Statements.
12. As part of an audit in accordance with Standards on Auditing weexercise professional judgment and maintain professional skepticism throughout the audit.We also:
Identify and assess the risks of material misstatement of theStandalone Financial Statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.
Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for explaining our opinion onwhether the company has adequate internal financial controls system in place and theoperating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the Standalone Financial Statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. However future events orconditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation structure and content of theStandalone Financial Statements including the disclosures and whether the StandaloneFinancial Statements represent the underlying transactions and events in a manner thatachieves fair presentation.
13. We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.
14. We also provide those charged with governance with a statement thatwe have complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.
Report on Other Legal and Regulatory Requirements
15. The Company has not paid or provided for any managerialremuneration during the year. Accordingly reporting under section 197(16) of the Act isnot applicable.
16. As required by the Companies (Auditor's Report) Order 2016(the Order') issued by the Central Government of India in terms of section143(11) of the Act we give in the Annexure A a statement on the matters specifiedin paragraphs 3 and 4 of the Order to the extent applicable.
17. As required by section 143(3) of the Act we report that:
a) we have sought and obtained all the information and explanationswhich 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 beenkept by the Company so far as it appears from our examination of those books;
c) the Standalone Financial Statements dealt with by this report are inagreement with the books of account;
d) in our opinion the aforesaid Standalone Financial Statements complywith Ind AS specified under section 133 of the Act;
e) on the basis of the written representations received from thedirectors and taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2020 from being appointed as a director in terms of section164(2) of the Act
; f) we have also audited the internal financial controls overfinancial reporting (IFCoFR) of the Company as on 31 March 2020 in conjunction with ouraudit of the Standalone Financial Statements of the Company for the year ended on thatdate and our report 26 June 2020 as per Annexure B expressed unmodified opinion;
g) with respect to the other matters to be included in theAuditor'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 accordingto the explanations given to us:
i. the Company does not have any pending litigation which would impactits financial position as at 31 March 2020;
ii. the Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses as at 31 March2020;
iii. there were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company during the year ended 31 March 2020;
Annexure A to the Independent Auditors' Report
ANNEXURE-A TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE TO THEMEMBERS OF RATTANINDIA INFRASTRUCTURE LIMITED ON THE STANDALONE FINANCIALSTATEMENTS FOR THE YEAR ENDED MARCH 31 2020
Based on the audit procedures performed for the purpose of reporting atrue and fair view on the Standalone Financial Statements of the Company and taking intoconsideration the information and explanations given to us and the books of account andother records examined by us in the normal course of audit and to the best of ourknowledge and belief we report that: (i) (a) The Company has maintained proper recordsshowing full particulars including quantitative details and situation of Property plantand equipment.
(b) The Property plant and equipment have been physically verified bythe management during the year and no material discrepancies were noticed on suchverification. In our opinion the frequency of verification of the Property plant andequipment is reasonable having regard to the size of the Company and the nature of itsassets.
(c) The title deeds of all the immovable properties (which are includedunder the head Property plant and equipment') are held in the name of theCompany.
(ii) The Company does not have any inventory. Accordingly theprovisions of clause 3(ii) of the Order are not applicable. (iii) The Company has notgranted any loan secured or unsecured to companies firms Limited Liability Partnerships(LLPs) or other parties covered in the register maintained under Section 189 of the Act.Accordingly the provisions of clauses 3(iii) of the Order are not applicable.
(iv) In our opinion the Company has complied with the provisions ofSections 185 and 186 of the Act in respect of loans investments guarantees and security.
(v) In our opinion the Company has not accepted any deposits withinthe meaning of Sections 73 to 76 of the Act and the Companies (Acceptance of Deposits)Rules 2014 (as amended). Accordingly the provisions of clause 3(v) of the Order are notapplicable.
(vi) The Central Government has not specified maintenance of costrecords under sub-section (1) of Section 148 of the Act in respect of Company'sproducts/ services. Accordingly the provisions of clause 3(vi) of the Order are notapplicable.
(vii) (a) The Company is regular in depositing undisputed statutorydues including provident fund employees' state insurance income-tax Goods andservices tax duty of customs and other material statutory dues as applicable to theappropriate authorities. Further no undisputed amounts payable in respect thereof wereoutstanding at the year-end for a period of more than six months from the date they becomepayable.
(b) There are no dues in respect of income-tax Goods and services taxduty of customs that have not been deposited with the appropriate authorities on accountof any dispute.
(viii) The Company has not taken any loan or borrowings from financialinstitutions banks and government or has not issued any debentures. Accordingly theprovisions of clause 3(viii) of the Order are not applicable.
(ix) The Company did not raise moneys by way of initial public offer orfurther public offer (including debt instruments) and did not have any term loansoutstanding during the year. Accordingly the provisions of clause 3(ix) of the Order arenot applicable. (x) No fraud by the Company or on the company by its officers or employeeshas been noticed or reported during the period covered by our audit.
(xi) The Company has not paid or provided for any managerialremuneration during the year. Accordingly provisions of clause 3(xi) of the Order are notapplicable.
(xii) In our opinion the Company is not a Nidhi Company. Accordinglyprovisions of clause 3(xii) of the Order are not applicable.
(xiii) In our opinion and according to the information and explanationgiven to us the company is in compliance with Sections 177 and 188 of Act whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the Standalone Financial Statements as required by theapplicable Ind AS.
(xiv) During the year the company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures.Accordingly provisions of clause 3(xiv) of the Order are not applicable (xv) In ouropinion the company has not entered into any non-cash transactions with the directors orpersons connected with them covered under Section 192 of the Act.
(xvi) The company is not required to be registered under Section 45-IAof the Reserve Bank of India Act 1934.
Annexure B to the Independent Auditors' Report
ANNEXURE-B TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE TO THEMEMBERS OF RATTANINDIA INFRASTRUCTURE LIMITED ON THE STANDALONE FINANCIALSTATEMENTS FOR THE YEAR ENDED MARCH 31 2020
Independent Auditor's report on the Internal Financial Controlsunder Clause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")
We have audited the internal financial controls with reference toStandalone Financial Statements of RattanIndia Infrastructure Limited ("theCompany") as of 31 March 2020 in conjunction with our audit of the StandaloneFinancial Statements of the Company for the year ended on that date.
In our opinion to the best of our information and according to theexplanation given to us the Company has in all material respects adequate internalfinancial controls over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at 31 March 2020 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls over Financial Reporting issued by the Institute of CharteredAccountants of India.
Management's Responsibility for Internal Financial Controls
The Company's Management and Board of Directors are responsiblefor establishing and maintaining internal financial controls based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls over Financial Reporting issued by the Institute of Chartered Accountants ofIndia. These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of the company's business including adherence tocompany's policies the safeguarding of its assets the prevention and detection offrauds and errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the Act.
Our responsibility is to express an opinion on the Company'sIFCoFR based on our audit. We conducted our audit in accordance with the Standards onAuditing issued by the Institute of Chartered Accountants of India (ICAI) and deemed tobe prescribed under section 143(10) of the Act to the extent applicable to an audit ofIFCoFR and the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the ICAI. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate IFCoFR were established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the IFCoFR and their operating effectiveness. Our audit of IFCoFR includedobtaining an understanding of IFCoFR assessing the risk that a material weakness existsand testing and evaluating the design and operating effectiveness of internal controlbased on the assessed risk. The procedures selected depend on the auditor'sjudgement including the assessment of the risks of material misstatement of theStandalone Financial Statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's IFCoFR.
Meaning of Internal Financial Controls over Financial Reporting
A company's IFCoFR is a process designed to provide reasonableassurance regarding the reliability of financial reporting and the preparation ofStandalone Financial Statements for external purposes in accordance with generallyaccepted accounting principles. A company's IFCoFR includes those policies andprocedures that (1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany; (2) provide reasonable assurance that transactions are recorded as necessary topermit preparation of Standalone Financial Statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and (3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could havea material effect on the Standalone Financial Statements.
Inherent Limitations of Internal Financial Controls over FinancialReporting
Because of the inherent limitations of IFCoFR including thepossibility of collusion or improper management override of controls materialmisstatements due to error or fraud may occur and not be detected. Also projections ofany evaluation of the IFCoFR to future periods are subject to the risk that IFCoFR maybecome inadequate because of changes in conditions or that the degree of compliance withthe policies or procedures may deteriorate.