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RDB Realty & Infrastructure Ltd.

BSE: 533285 Sector: Infrastructure
NSE: N.A. ISIN Code: INE245L01010
BSE 00:00 | 19 Sep 24.15 1.15
(5.00%)
OPEN

23.00

HIGH

24.15

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23.00

NSE 05:30 | 01 Jan RDB Realty & Infrastructure Ltd
OPEN 23.00
PREVIOUS CLOSE 23.00
VOLUME 6194
52-Week high 50.85
52-Week low 17.60
P/E 67.08
Mkt Cap.(Rs cr) 42
Buy Price 24.15
Buy Qty 501.00
Sell Price 24.15
Sell Qty 150.00
OPEN 23.00
CLOSE 23.00
VOLUME 6194
52-Week high 50.85
52-Week low 17.60
P/E 67.08
Mkt Cap.(Rs cr) 42
Buy Price 24.15
Buy Qty 501.00
Sell Price 24.15
Sell Qty 150.00

RDB Realty & Infrastructure Ltd. (RDBREALTY) - Auditors Report

Company auditors report

TO THE MEMBERS

RDB REALTY & INFRASTRUCTURE LIMITED

We have audited the accompanying standalone Ind AS financial statements (hereinreferred to as financial statement in this report) of RDB REALTY & INFRASTRUCTURELIMITED which comprise the Balance Sheet as at March 31 2018 the Statement ofProfit & Loss Cash Flow Statement and the Statement of Changes in Equity for the yearthen ended for the year ended and also a summary of significant accounting policies andother 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 preparation ofthese Ind AS financial statements that give a true and fair view of the financialposition financial performance including other comprehensive income cash flows andchanges in equity of the Company in accordance with the accounting principles generallyaccepted in India including the Indian Accounting Standards (Ind AS) prescribed underSection 133 of the Act read with relevant rules issued thereunder.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; the selection andapplication of appropriate accounting policies; making judgments and the estimates thatare reasonable and prudent; and the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe Ind AS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS financial statements basedon our audit. We have taken into account the provisions of the Act the accounting andauditing standards and matters which are required to be included in the audit report underthe provisions of the Act and the Rules made there under.

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 Ind AS financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give a true and fair view in order todesign audit 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 Ind AS financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India including the Ind AS of the state ofaffairs of the Company as at 31st March 2018 and its profit its cash flows and itsstatements of changes in equity for the year ended on that date.

Emphasis of Matter

We draw attention to the following matter in the Notes to the following Ind ASfinancial statements:

a) Note 36 (a) to the Ind AS financial statements which describes the uncertaintyregarding corporate guarantee given by company to other company for securing a term loanfor subsidiary company. Our opinion is not qualified on this matter

b) Note 36 (c) to the Ind AS financial statements which describes the uncertaintyrelated to the outcome of pending dispute in the matter of Income Tax against Appellatetribunal of Income Tax. Our opinion is not qualified on this matter.

c) Note 36 (d) & (e) to the Ind AS financial statements which describes theuncertainty related to the outcome of pending dispute in the matter of Income Tax againstCommissioner (Appeal) of Income Tax. Our opinion is not qualified on this matter.

Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act and on the basis of such checks of the books and records as we consideredappropriate and according to the information and explanations given to us we set out astatement on the matters specified in the paragraph 3 and 4 of the Order to the extentapplicable.

1. a) The company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets.

b) As explained to us Fixed Assets of the company are physically verified by themanagement according to a phased programme designed to cover all the items whichconsidering the size and nature of operations of the company appears to be reasonable.Pursuant to such program no material discrepancies between book records and physicalinventory have been noticed on physical verification.

c) The title deeds of immovable properties are held in the name of the company.

2. a) The inventory has been physically verified by the management at regularintervals. In respect of inventory lying with third parties these have substantially beenconfirmed by them.

b) In our opinion and according to the information's and explanations given to us theprocedures of physical verification of inventories followed by the management arereasonable and adequate in relation to the size of the company and the nature of itsbusiness.

c) On the basis of our examinations of records of the inventory in our opinion thecompany is maintaining proper records of inventory except in respect of work- in-progress.As in earlier years work-in-progress has been determined by the management on the basisof physical verification. The discrepancies ascertained on physical verification betweenthe physical stock and the book records of inventory were not material in relation to theoperations of the Company.

3. The company has not granted loans secured or unsecured to companies firms or otherparties covered in the register maintained under section 189 of the Companies Act 2013.Hence clause is not applicable.

4. According to the records of the company examined by us and according to theinformation and explanations neither given to us in our opinion the company has given anyguarantees or security nor has made any investments nor given a loan covered under theprovisions of section 185 and 186 of the Companies Act 2013.

5. The company has not accepted deposits and the directives issued by the Reserve Bankof India and the provisions of sections 73 to 76 or any other relevant provisions of theCompanies Act 2013 and the rules framed there under are not applicable.

6. The rules regarding maintenance of cost records which have been specified by thecentral government under subsection (1) of section 148 of the Companies Act 2013 are notapplicable to the Company.

7. a) The company is regular in depositing undisputed statutory dues includingprovident fund employees' state insurance income-tax sales-tax service tax duty ofcustoms duty of excise value added tax goods and service tax cess and any otherstatutory dues with the appropriate authorities and there is no arrears of outstandingstatutory dues as at the last day of the financial year concerned for a period of morethan six months from the date they became payable.

b) According to the records of the company examined by us and according to informationand explanations given to us there are no dues in respect of income tax sales taxwealth tax service tax duty of customs duty of excise value added tax or cess whichhave not been deposited on account of any dispute except as stated below:

Nature of Statute Nature of Dues Amount (Rs in Lacs) Period Forum where pending
Income Tax Act 1961 In come Tax 174.28 2010-11 Appellate Tribunal (Income Tax)
Income Tax Act 1961 In come Tax 103.66 2011-12 Commissioner Appeal (Income Tax)
Income Tax Act 1961 In come Tax 102.36 2012-13 Commissioner Appeal (Income Tax

8. According to the records of the Company examined by us and the information andexplanations given to us the Company has neither defaulted in repayment of loans orborrowing to any financial institution bank and government nor has it any outstandingdebenture; hence the clause is not applicable.

9. In our opinion and according to the information's and explanations given to usthere was no money raised by way of initial public offer or further public offer(including debt instruments) and the term loan has been applied on an overall basis forthe purpose for which they were obtained.

10. According to the information and explanations given to us we report that neitherany fraud by the company nor on the company by its officers / employees has been noticedor reported during the year.

11. As examined by us the company has paid remuneration to managerial personnel duringthe period in accordance with the requisite approval mandated by the provisions of section197 read with Schedule V to the Companies Act 2013.

12. The company is not a nidhi company. Hence clause is not applicable.

13. According to the information and explanations given to us we are of the opinionthat all the transactions with the related parties are in compliance with sections 177 and188 of Companies Act 2013 and the details have been disclosed in the Ind AS financialstatements etc. as required by the applicable accounting standards.

14. According to the information and explanations given to us we report that thecompany has neither made any preferential allotment or private placement of shares norfully or partly convertible debentures during the year under review. Hence clause is notapplicable.

15. According to the information and explanations given to us we report that thecompany has not entered into any noncash transactions with directors or persons connectedwith them. Hence clause is not applicable.

16. According to the information and explanations given to us we report that companyis not required to be registered u/s 45-IA of Reserve Bank of India Act 1934.

Report on Other Legal and Regulatory Requirements

As required by Section 143 (3) of the Act we report that:

1. 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.

2. 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.

3. The Balance Sheet the Statement of Profit and Loss the Cash Flow Statement and thestatement of charges in equity dealt with by this Report are in agreement with the booksof account.

4. In our opinion the aforesaid financial statements comply with the Ind AS specifiedunder Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

5. On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in terms of Section164 (2) of the Act.

6. With respect to the adequacy of the internal financial controls over financialsreporting of the company and the operating effectiveness of such controls refer to ourseparate report in Annexure A.

7. 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:

a) I) Note 36 (c) to the Ind AS financial statements which describes the uncertaintyrelated to the outcome of pending dispute in the matter of Income Tax against Appellatetribunal of Income Tax. Our opinion is not qualified on this matter

ii) Note 36 (d)&(e) to the Ind AS financial statements which describes theuncertainty related to the outcome of pending dispute in the matter of Income Tax againstCommissioner (Appeal) of Income Tax. Our opinion is not qualified on this matter.

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

c) There has been no delay in transferring amounts required to be transferred to theInvestor Education and Protection Fund by the Company.

For S. M. Daga & Co.
Chartered Accountants
Firm Registration No. 303119E
Deepak Kumar Daga
(Partner)
Membership No. 059205
Place: 11 Clive Row Kolkata - 700 001
Date: 30th May 2018

Independent Auditor's Report

TO THE MEMBERS OF

RDB REALTY & INFRASTRUCTURE LIMITED

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

We have audited the internal financial controls over financial reporting of RDBREALTY & INFRASTRUCTURE LIMITED as of 31st March 2018 in conjunction with ouraudit of the Ind AS financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining 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 the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe 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 Reportingand the Standards on Auditing issued by ICAI and deemed to be prescribed under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively 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

I) Pertains to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company.

II) Provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company.

III) Provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial 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 31st March 2018 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 S. M. Daga & Co.
Chartered Accountants
Firm Registration No. 303119E
Deepak Kumar Daga
(Partner)
Membership No. 059205
Place: 11 Clive Row Kolkata - 700 001
Date: 30th May 2018