To the Members of
Relstruct Buildcon Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Relstruct Buildcon Limited('the Company1) which comprise the Balance Sheet as at 31st March 2017 the Statement ofProfit and Loss the Cash Flow Statement for the year then ended and a summary ofsignificant 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 preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.
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; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit. 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 undersection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditors' judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2017 its profit and cash flows for the year ended on that date.
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 we give in the Annexure 'A' a statement on the matters specified in paragraphs 3and 4 of the Order.
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 beliefwere necessary for the purposes of ouraudit.
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 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 financial statements comply with the AccountingStandards specified under section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
e) On the basis of written representations received from the directors as on 31stMarch 2017 and taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in terms of section164(2) of the Act;
f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".
g) With respect to the other matters to be included in the Auditors' 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 does not have any pending litigations/ which would impact its financialposition;
ii) the Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses;
iii) there were no amounts which were required to be transferred to Investors Educationand Protection Fund by the Company.
iv) the Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in Specified Bank Notes as defined in the Notification S.O.3407(E) dated the 8th November 2016 of the Ministry of Finance during the period from8th November 2016 to 30th December 2016. Based on audit procedures performed and therepresentations provided to us by the management we report that the disclosures are inaccordance with the books of account maintained by the Company and as produced to us bythe Management. Refer clause 14 of note no. 23 to the financial statements.
For R. M. Ajgaonkar & Associates
Firm's Registration Number: 117247W
Membership number: 143685
Place: Mumbai Date: 29th May 2017
ANNEXURE "A" TO AUDITORS' REPORT Re: RELSTRUCT BUILDCON LIMITED
The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the Financial Statements for the year ended 31st March 2017;
1) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of the fixed asset.
(b) As explained to us the fixed assets have been physically verified by themanagement during the year which in our opinion is reasonable having regards to thenature of the assets. No material discrepancies have been noticed on such verification.
(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company we report that no immovable property is held inthe name of the Company.
2) Physical verification has been conducted by the management at the yearend in respectof stores and materials at all of its locations. The procedures and frequency of physicalverifications of stocks followed by the management were found reasonable and adequate inrelation to the size of the Company and nature of its business. Minor discrepanciesnoticed on such physical verification have been properly dealt with in the books ofaccount.
3) As per the information and explanations given to us the company has not granted anyloans secured or unsecured to companies firms Limited liability partnership or otherparties covered in the register maintained under section 189 of the Companies Act 2013.Therefore the provisions of paragraph 3(iii) of the Order are not applicable to theCompany.
4) As per the information and explanations given to us and on the basis of recordsexamined by us we are of the opinion that the Company has complied with the provisions ofsection 185 and 186 of the Act with respect to the loans guarantees and securities givenand investments made.
5) As per the information and explanation given to us the Company has not accepted anydeposits from the public during the year. Therefore the provisions of paragraph 3(v) ofthe Order are not applicable to the Company.
6) On the basis of the information and explanations given to us the Central Governmenthas not prescribed maintenance of cost records under sub-section (1) of section 148 of theCompanies Act 2013 for the activities of the Company. Therefore the provisions ofParagraph 3(vi) of the Order are not applicable to the Company.
7) (a) As per the information and explanations given to us the Company is generallyregular in depositing undisputed statutory dues including provident fund employees' stateinsurance income tax sales tax service tax duty of customs duty of excise valueadded tax cess and any other statutory dues with the appropriate authorities whereverapplicable during the year. As per the information and explanations given to us and therecords examined by us there are no undisputed arrears of statutory dues which areoutstanding as at the last day of the concerned financial year for more than six monthsfrom the date they became payable.
(b) As per the information and explanation given to us there are no disputed duesoutstanding on account of income tax sales tax service tax duty of customs duty ofexcise value added tax.
8) In our opinion and according to the information and explanation given to us theCompany ha not defaulted in repayment of loans or borrowings to any financialinstitutions banks and government. The Company did not have any outstanding debenturesduring the year.
9) According to the information and explanation given to us by the management and onthe basis of examination of the relevant records prima facie it appears that the saidamounts have been applied for the purpose for which they were raised
10) To the best of our knowledge and belief and according to the information andexplanations given to us no fraud by the Company or no material fraud on the Company byits officers or employees have been noticed or reported during the year.
11) In our opinion managerial remuneration has been provided in accordance with therequisite approvals mandate by the provisions of section 197 of the Act read with ScheduleV to the Companies Act 2013.
12) As per the information and explanation given to us the nature of activities of theCompany does not attract any provisions of special statute applicable to a Nidhi Company.Therefore the provisions of paragraph 3(xii) of the Order are not applicable to theCompany.
13) According to the information and explanations given by management the transactionswith the related parties are in compliance with section 188 of the Act whereverapplicable; and details of such transactions have been disclosed in the financialstatements as required by the applicable accounting standards. The provisions of Section
177 are not applicable to the Company and accordingly reporting under paragraph3(xiii) insofar as it relates to that section is not applicable to the Company.
14) According to the information and explanation given to us the Company has madepreferential allotment / private placement of shares during the year. In our opinion theCompany has complied with the provisions of section 42 of the Act and the amount raisedhas been used for the purpose for which the funds are raised. The Company has not made anypreferential allotment / private placement of fully or partly convertible debenturesduring the year under review.
15) 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 asspecified under section 192 of the Act. Therefore the provisions of paragraph 3(xv) ofthe Order are not applicable to the Company.
16) According to the information and explanations given to us the Company is notrequired to be registered under section 45-IA of the Reserve Bank of India Act 1934.Therefore the provisions of paragraph 3(xvi) of the Order are not applicable to theCompany.
For R. M. Ajgaonkar & Associates
Firm's Registration Number: 117247W
Membership Number: 143685
Place: Mumbai Date: 29th May 2017