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RPP Infra Projects Ltd.

BSE: 533284 Sector: Infrastructure
NSE: RPPINFRA ISIN Code: INE324L01013
BSE 00:00 | 20 Feb 105.85 5.50
(5.48%)
OPEN

102.00

HIGH

106.00

LOW

102.00

NSE 00:00 | 20 Feb 104.95 4.45
(4.43%)
OPEN

99.00

HIGH

105.95

LOW

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OPEN 102.00
PREVIOUS CLOSE 100.35
VOLUME 1438
52-Week high 302.50
52-Week low 87.10
P/E 7.68
Mkt Cap.(Rs cr) 239
Buy Price 104.00
Buy Qty 1.00
Sell Price 105.85
Sell Qty 4.00
OPEN 102.00
CLOSE 100.35
VOLUME 1438
52-Week high 302.50
52-Week low 87.10
P/E 7.68
Mkt Cap.(Rs cr) 239
Buy Price 104.00
Buy Qty 1.00
Sell Price 105.85
Sell Qty 4.00

RPP Infra Projects Ltd. (RPPINFRA) - Auditors Report

Company auditors report

To

The Members Of

M/s. R.P.P. INFRA PROJECTS LIMITED

Report on the Standalone Ind AS financial statements

We have audited the accompanying standalone Ind AS financial statements of M/S. R.P.P.INFRA PROJECTS LIMITED ("the company") which comprise the Balance Sheet as at31 March 2018 the Statement of Profit and Loss including the statement of OtherComprehensive income the Cash Flow Statement the statement of changes in equity and asummary of the significant accounting policies and other explanatory information for theyear then ended which includes two branches ("standalone Ind AS financialstatements").

Management's Responsibility for the Standalone Ind AS 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 standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity 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. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent;design implementation 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 Ind AS financial statementsthat give a true and fair view and are free from material misstatement whether due tofraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither Intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

Auditors' Responsibility

Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit.

We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made there under.

We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India as specified under Section 143(10) of the Act.Those Standards require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free frommaterial misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement 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 but not for the purpose of expressing an opinionon the effectiveness of the entity's internal control. An audit also includes evaluatingthe appropriateness of the accounting policies used and the reasonableness of theaccounting estimates made by the Company's Directors as well as evaluating the overallpresentation of the standalone Ind AS financial statements.

We are also responsible to 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 entity's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in the auditor's report tothe related disclosures in the financial statements or if such disclosures are inadequateto modify the opinion. Our conclusions are based on the audit evidence obtained up to thedate of the auditor's report. However future events or conditions may cause an entity tocease to continue as a going concern. We believe that the audit evidence we have obtainedis sufficient and appropriate to provide a basis for our audit opinion on the standaloneInd AS financial statements.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us except the financial statements of Srilanka and Bangladesh branches notaudited by us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India of the state of affairs of theCompany as at 31 March 2018 of its profit including other comprehensive income its cashflows and changes in equity for the year ended on that date.

Other Matter

We did not audit the financial statements of two branches included in the standalonequarterly financial results and year to date results whose standalone financialstatements reflect total assets of Rs. 22.57 crore as at 31 March 2018 total revenue ofRs. 8.27 crore as at 31 March 2018 and total profit after tax of Rs. 0.24 crore whoseunaudited financial statements and other unaudited information have been furnished to us.Our opinion on the statements in so far as it relates to the amounts and disclosuresincluded in respect of the two branches and our report in terms of subsection (3) and (11)of section 143 of the Act in so far as it relates to the aforesaid branches is basedsolely on such unaudited financial statements and other unaudited financial information.Our opinion is not modified in respect of this matter.

Attention is invited to Note No: 32 regarding disclosure on search operation conductedon the Company during March 2016. Our opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) 2016 (‘the Order') issued bythe Central Government of India in terms of sub-section (11) of Section 143 of the Act wegive in the ‘Annexure A' a statement on the matters specified in the paragraph 3 and4 of the order.

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) We have not audited the branch offices situated in Srilanka and Bangladesh. We havenot received any audit report for the same.

(c) 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.

(d) 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 accounts.

(e) In our opinion the aforesaid standalone Ind AS financial statements comply withthe Accounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

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

(g) 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'.

(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 in our opinionand to the best of our information and according to the explanations given to us:

a. The company has disclosed the impact of pending litigations on its financialposition in its standalone Ind AS financial statements. Refer to Note no. 10.1 - to thestandalone Ind AS financial statements.

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.

d. Disclosures in the financial statements regarding holdings as well as dealings inSpecified Bank Notes during the period 8th November 2016 to 30th December 2016 have notbeen made since they do not pertain to financial year ended 31-03-2018. However amountsas appearing in Audited Ind AS financial statements as on 31-03-2017 have been disclosed.

For SUNDARAM & NARAYANAN
Chartered Accountants
Firm Reg. No: 004204S
CA .P.KAILASAM
Place: Erode Partner
Date: 12-05-2018 Membership No: 222363

Annexure ‘A' to the Independent Auditors' Report

The Annexure referred to in Independent Auditors' Report to the members of the Companyon the standalone Ind AS financial statements for the year ended 31 March 2018.

According to information and explanations given to us we report that:

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

b) The fixed assets have been physically verified by the management during the yearwhich in our opinion is reasonable having regard to the size of the company and thenature of its assets. No material discrepancies were noticed on such verification.

c) The title deeds of all the immovable properties of the Company shown under the FixedAssets schedule are held in the name of Company.

2. The inventories have been physically verified by the management at reasonableintervals during the year. In our opinion the frequency of such verification isreasonable and no discrepancies were noticed at the time of verification.

3. The Company has granted no loans secured or unsecured to companies firms LLP orother parties covered in the registered maintained under Section 189 of the Companies Act2013 other than to its subsidiaries viz. R.P.P. Infra Overseas Plc Sanskar DealcomPrivate Limited and Greatful Mercantile Private Limited as mentioned below:

(a) The terms and conditions of the grant of such loans are not prejudicial to theCompany's interest.

(b) The payment of interest and repayment of principal are as per the terms andconditions stipulated.

(c) There is no amount overdue on such loans on the year end as at 31-03-2018.

4. In our opinion and according to explanations given to us the company has compliedwith the provisions of the sections 185 and 186 of the Act in respect of grant of loansadvances etc.

5. The company has not accepted any deposits to which the provisions of Sec. 73 to 76or any other relevant provisions of the Act and the rules framed there under and thedirections issued by the RBI are applicable. Hence this clause is not applicable and notcommented upon.

6. We have broadly reviewed the books of account maintained by the company pursuant tothe Rules made by the Central Government for the maintenance of cost records u/s 148 ofthe Act and are of the opinion that prima facie the prescribed accounts and records havebeen made and maintained. We have however not made a detailed examination of the costrecords with a view to determine whether they are accurate or complete.

7. a) Undisputed statutory dues including PF ESI income-tax sales-tax service taxduty of custom duty of excise VAT cess have generally been regularly deposited with theappropriate authorities though there had been delay in few cases.

b) The service tax liability has become payable and not cleared since July' 2017amounts to Rs. 57.96 lakh. There is another liability for Reverse Charge Mechanism underGoods and Service Tax which is outstanding since July' 2017 for Rs. 62.62 lakh. Other thanthis no other statutory liability has been undisputed and unpaid for more than six monthspreceding the end of the financial year on 31-03-2018. The Company pays GST to the extentit receives from the customers. Filing returns for the period is under process.

c) T he particulars of Income tax Service Tax which have not been deposited on accountof any dispute are as follows:

Name of Statute Nature of the due Amount in Rs. Period to which the amount relates Forum where the dispute is pending
Income Tax Act Income Tax 14668 2005-06 Assistant Commissioner of Income TaxCircle-IErode
Income Tax Act Income Tax 2414650 2005-06 Assistant Commissioner of Income TaxCircle-IErode
Income Tax Act Income Tax 8268 2007-08 Assistant Commissioner of Income TaxCircle-IErode
Income Tax Act Income Tax 2546 2008-09 Assistant Commissioner of Income TaxCircle-IErode
Income Tax Act Income Tax 6733908 2008-09 Assistant Commissioner of Income TaxCircle-IErode
Income Tax Act Income Tax 18306420 2009-10 Income Tax Appellate Tribunal Chennai
Income Tax Act Income Tax 13152200 2009-10 Commissioner of Income Tax Coimbatore
Income Tax Act Income Tax 17888460 2011-12 Commissioner of Income Tax Coimbatore
Income Tax Act Income Tax 14202440 2012-13 Assistant Commissioner of Income TaxCircle-IErode
Income Tax Act Income Tax 2966600 2013-14 Income Tax Department-CPC
Service Tax Act Service Tax 2.52 crore 2004-09 Commissioner of Central excise dept
Service Tax Act Service Tax 0.63 crore 2010 Commissioner of Central excise dept
Service Tax Act Service Tax 1.87 crore 2010-11 Commissioner of Central excise dept
Service Tax Act Service Tax 3.44 crore 2012 Commissioner of Central excise dept
Service Tax Act Service Tax 2.18 crore 2012-13 Commissioner of Central excise dept

The Company pays GST to the extent it receives from the customers. Filing returns forthe period is under

As per the Income tax portal a sum of Rs. 0.32 crore is shown as due from the companytowards TDS dues. However the company has cleared the entire due on 31-03-2018 and isawaiting the revision in the portal.

8. Based on our audit procedures we are of the opinion that the company has notdefaulted in repayment of dues to its bank financial institution and to the Governmentfor the year ended 31-03-2018. There are no Debenture holders for the Company.

9. No monies were raised through initial public offer during the year. The moniesraised through term loans were applied for the purpose for which they have been raised.

10. Based upon the audit procedures performed we report that no fraud by the companyand no fraud on the Company by its officers / employees has been noticed or reportedduring the course of our audit.

11. The Managerial Remuneration has been paid / provided in accordance with therequisite approvals mandated by Sec. 197 read with Schedule V to the Act.

12. The Company is not a Nidhi Co. and therefore clause 3(12) of the Order is notapplicable to the Company and we do not comment upon this provision.

13. In our opinion all the Related Party Transactions entered into by the Companyduring the year are in compliance with the provisions Sec. 188 & 177 of the Act andthe details thereof have been disclosed in the Financial Statements as required by theAccounting standards and the Act.

14. The Company has not made any preferential allotment / private placement of sharesduring the year and therefore this clause is not applicable to the Company.

15. The Company has not entered into any non-cash transactions with directors / personsconnected with him as stipulated u/s. 192 of the Act. Clause 3(15) of the Order istherefore not applicable to the Company.

16. In our opinion the Company is not required to be registered u/s 45-IA of theReserve Bank of India Act 1934.

For SUNDARAM & NARAYANAN
Chartered Accountants
Firm Reg. No: 004204S
CA .P.KAILASAM
Place: Erode Partner
Date: 12-05-2018 Membership No: 222363

Annexure ‘B' To The Independent Auditors' Report

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 M/s. R.P.P.Infra Projects Limited as of 31 March 2018 in conjunction with our audit of the standaloneInd 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 Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extent applicableto an audit of internal financial controls. Those Standards and the Guidance Note requirethat we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting except relating to the branches in Srilanka and Bangladesh.

Meaning of Internal Financial Controls over Financial Reporting

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

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of the information and explanations given to us exceptrelating to the branches in Srilanka and Bangladesh for which we have neither audited norreceived an Independent Auditor's report on the same the Company has in all materialrespects an adequate internal financial controls system over financial reporting and suchinternal financial controls over financial reporting were operating effectively as at 31March 2018 based on the internal control over financial reporting criteria established bythe Company considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls Over Financial Reporting issued bythe Institute of Chartered Accountants of India.

For SUNDARAM & NARAYANAN
Chartered Accountants
Firm Reg. No: 004204S
CA .P.KAILASAM
Place: Erode Partner
Date: 12-05-2018 Membership No: 222363