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RPP Infra Projects Ltd.

BSE: 533284 Sector: Infrastructure
NSE: RPPINFRA ISIN Code: INE324L01013
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VOLUME 2371
52-Week high 78.75
52-Week low 38.40
P/E 7.14
Mkt Cap.(Rs cr) 152
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 41.90
CLOSE 40.95
VOLUME 2371
52-Week high 78.75
52-Week low 38.40
P/E 7.14
Mkt Cap.(Rs cr) 152
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

RPP Infra Projects Ltd. (RPPINFRA) - Auditors Report

Company auditors report

To

The Members of R.P.P. Infra Projects Ltd.

Report on the Audit of the Standalone Financial Statements

Opinion

I have audited the accompanying standalone financial statements ofR.P.P INFRA PROJECTS LIMITED ("the Company") which comprise the Balance sheetas at 31st March 2021 and the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Changes in Equity and the Statement of Cash Flows for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation which includes two branches.

In my opinion and to the best of my information and according to theexplanations given to me the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2021the profit and total comprehensive income changes in equity and it's cash flows for theyear ended on that date.

Basis for Opinion

I conducted my audit in accordance with the Standards on Auditing("SA"s) specified under section 143(10) of the Companies Act 2013. Myresponsibilities under those Standards are further described in the Auditor'sresponsibilities for the Audit of the Financial Statements section of my report.

I am independent of the Company in accordance with the Code of Ethicsissued by The Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to my audit of the financial statements under theprovisions of the Companies Act 2013 and the Rules made thereunder and i have fulfilledmy other ethical responsibilities in accordance with these requirements and the ICAI'sCode of Ethics. I believe that the audit evidence obtained by me is sufficient andappropriate to provide a basis for my opinion on the standalone financial statements.

Emphasis of Matters

II draw attention to note No.2.03(viii) of the Standalone financialstatements in which the Company describes the uncertainties arising from the Covid-19Pandemic. My report is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in my professional judgmentwere of most significance in my audit of the financial statements of the current period.These matters were addressed in the context of my audit of the financial statements as awhole and in forming my opinion thereon and i do not provide a separate opinion on thesematters.

I have determined the matters described below to be the key auditmatters to be communicated in my report.

S. No. Key Audit Matter Auditor's Response
1. Revenue recognition in accordance with Ind AS 115 "Revenue from Contracts with Customers" My audit procedures on revenue recognized from fixed price development contracts include
The Company inter alia engages in Fixed-price development contracts where revenue is recognized using the percentage of completion computed as per the input method based on management's estimate of contract costs. (Refer Notes No. 27 to the Standalone Financial Statements) • Understanding of the systems processes and controls implemented by management for recording and calculating revenue and work-in-progress/Contract Assets.
I identified revenue recognition of fixed price development contracts as a KAM considering - • On selected samples of contracts i tested that the revenue recognized is in accordance with the accounting standard by -
• There is an inherent risk around the accuracy of revenues given the customised and flexible nature of these contracts in terms of tenure of the projects. • Evaluating the performance obligation;
• Application of revenue recognition accounting standard is complex and involves a number of key judgments and estimates including estimating the future cost-to- completion of these contracts which is used to determine the percentage of completion of the relevant performance obligation; • Testing management's calculation of the estimation of contract cost and onerous obligation if any. I :
• These contracts may involve onerous obligations on the Company that require critical estimates to be made by management; and • Observed that the estimates of cost to complete were reviewed and approved by appropriate levels of management;
• At year-end a significant amount of work in progress (Contract assets and liabilities) related to these contracts is recognised in the balance sheet. • Performed a retrospective review of costs incurred with estimated costs to identify significant variations and verify whether those variations have been considered in estimating the remaining costs to complete the contract; and
• Assessed the appropriateness of work in progress (contract assets) in balance sheet by evaluating the underlying documentation to identify possible delays in achieving milestones which may require change in estimated costs to complete the remaining performance obligations.
2. Evaluation of Going Concern assumption of accounting : Our procedures in relation to evaluation of going concern included the following:
The evaluation of the appropriateness of adoption of going concern assumption for preparation of these financial statements performed by the management of the Group is identified as a key audit matter .
The Group has prepared future cash flow forecasts which involves judgement and estimation of key variables and market conditions including future economic conditions on account of prevailing global pandemic COVID-19 • Obtained an understanding of the process followed by the management and tested the internal controls over the liquidity assessment compliance with the debt covenants and preparation of the cash flow forecast and validation of the assumptions and inputs used in the model to estimate the future cash flows.
The Group is confident that the net cash inflows from operating activities in conjunction with the available line of credit and normal cyclical nature of working capital receipts and payment will provide sufficient liquidity to meet its financial obligation as the fall due for the following twelve months. Hence these financial statements have been prepared adopting the going concern assumption. • Tested the inputs and assumptions used by the management in the cash flow forecast against historical performance budgets economic and industry indicators publicly available information the Group's strategic plans and benchmarking of key market related conditions. /
• Assessing the key assumptions including those pertaining to revenue and the timing of significant payments in the cash flow forecast for the following eighteen months.
• Performed sensitivity analysis on key assumptions like input prices discount rate and selling prices to determine their impact on the projections of future cash flows also on any possible cash outgo for securing the extension of the Rajasthan oil and gas block.
• Compared the details of the Group's long-term credit facilities to the supporting documentation. / Assessed the disclosures made by the Group in this regard.
3. Measurement of contract assets in respect of overdue milestones and receivables in respect of overdue invoices The procedures performed included the following:
The Company in its contract with customers promises to transfer distinct services to its customers which may be rendered in the form of engineering procurement and construction (EPC) services through design-build contracts and other forms of construction contracts. • obtained an understanding of the Company's processes in collating the evidence supporting execution of work for each disaggregated type of revenue;
The recognition of revenue is based on contractual terms which could be based on agreed unit price or lump-sum revenue arrangements. • obtained an understanding of the Company's processes in assessing the recoverability of amounts overdue and process over estimating the expected credit loss allowance;
At each reporting date revenue is accrued for costs incurred against work performed that may not have been invoiced. • tested the design and operating effectiveness of the key controls over the completeness and accuracy of the key inputs and assumptions into the provisioning model;
Identifying whether the Company's performance has resulted in a service that would be billable and collectable where the works carried out have not been acknowledged by customers as of the reporting date or in the case of certain defence contracts where the evidence of work carried out and cost incurred are covered by confidentiality arrangements involves a significant amount of judgment. • evaluated controls over authorisation and calculation of provisioning model;
Assessing the recoverability of contract assets related to overdue milestones and amounts overdue against invoices raised which have remained unsettled for a significantly long period after the end of the contractual credit period also involves a significant amount of judgment. • evaluated the delivery and collection history of customers against whose contracts un-invoiced revenue is recognised;
Refer to Note No. 2.14(i)and Note No.27of the standalone financial statements • verified for the sample selected receipts post balance sheet date upto the approval of the financial statements by the Board of Directors of the Parent Company;
• performed an overall assessment of the expected credit loss provision to determine if they were reasonable considering the Company's portfolio risk profile credit risk management practices and the macroeconomic environment; and
• tested the appropriateness of the disclosures in the financial statements to ensure compliance with Ind AS 115
4. Physical verification of Inventory The procedures performed included the following:
The Company's management conducts physical verification of inventories during the year at reasonable intervals however on account of the COVID-19 related lockdown restrictions management was able to perform year end physical verification of inventories only at certain locations. • Understood the process and tested the management's internal controls to establish the existence of inventory in relation to the process of periodic physical verification carried out by the management the scope and coverage of the periodic verification programme the results of such verification including analysis of discrepancies if any;
Management has carried out other procedures to validate the existence of its inventory as at the year-end such as carrying out consumption analysis and performing roll-back procedures from the subsequent year end physical verification date to determine the quantities of the inventory at the balance sheet date. • At selected locations subsequent to year-end where the management appointed third party independent chartered accountants to perform physical verification sent instructions to the third party chartered accountants to carry out the physical verification and provided samples to be verified by them. We have received the report of the physical verification carried out by the third party independent chartered accountants. Obtained the roll back procedures performed by the management from the subsequent year-end physical verification date to arrive at the quantities as at the balance sheet date. Traced the samples physically verified by the third party independent chartered accountants roll back workings provided by the management.
Refer Note No. 2.11 of the standalone financial statements • Inspected for samples selected supporting documentation relating to purchases and consumption and such other third party evidences where applicable.
• Tested the analytical reviews performed by the Company such as consumption analysis.
5. Claims and exposures relating to taxation and litigation Our audit procedures included the following:
The Group is subject to a large number of tax and legal disputes which have been disclosed / provided for in the financial statements based on the facts and circumstances of each case. • Gained an understanding of the process of identification of claims litigations and contingent liabilities and identified key controls in the process.
Taxation and litigation exposures have been identified as a key audit matter due to the complexities involved in these matters timescales involved for resolution and the potential financial impact of these on the financial statements. • For selected controls we have performed tests of controls.
Further significant management judgement is involved in assessing the exposure of each case and thus a risk that such cases may not be adequately provided for or disclosed. • Obtained the summary of Group's legal and tax cases and critically assessed management's position through discussions with the Legal Counsel Head of Tax and operational management on both the probability of success in significant cases and the magnitude of any potential loss.
• Examined external legal opinions (where considered necessary) and other evidence to corroborate management's assessment of the risk profile in respect of legal claims.
• Assessed the relevant disclosures made within the financial statements to address whether they reflect the facts and circumstances of the respective tax and legal exposures and the requirements of relevant accounting standards.
Assessed the competence and objectivity of the Group's experts to satisfy ourselves that these parties are suitable in their roles.

We have determined that there are no other Key Audit Matters tocommunicate in our report.

Information Other than the Financial Statements and Auditor's ReportThereon

The Company's management and Board of Directors are responsible for theother information. The other information comprises the information included in theCompany's annual report but does not include the standalone financial statements and ourauditors' report thereon.

My opinion on the standalone financial statements does not cover theother information and I do not express any form of assurance conclusion thereon.

In connection with my audit of the standalone financial statements myresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements ormy knowledge obtained in the audit or otherwise appears to be materially misstated. Ifbased on the work i have performed i conclude that there is a material misstatement ofthis other information; I have required reporting that fact. I have nothing to report inthis regard.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Companies Act 2013 ("the Act") with respect to thepreparation of these standalone financial statements that give a true and fair view of thefinancial position financial performance (changes in equity) and cash flows of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Ind AS specified under section 133 of the Act.

This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding of the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statement that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company'sfinancial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

My objectives are to obtain reasonable assurance about whether thefinancial statements as a whole are free from material misstatement whether due to fraudor error and to issue an auditor's report that includes my 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 financial statements.

As part of an audit in accordance with SAs I exercise professionaljudgment and maintain professional scepticism throughout the audit. I 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 my 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 financial control relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act I am also responsible for expressing myopinion on whether the Company has adequate internal financial controls system in placeand the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by the management.

• Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If I conclude that a materialuncertainty exists I am required to draw attention in my auditor's report to the relateddisclosures in the standalone financial statements or if such disclosures are inadequateto modify my opinion. My conclusions are based on the audit evidence obtained up to thedate of my audit report. However future events or conditions may cause the Company tocease 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.

• Obtain sufficient appropriate audit evidence regarding thefinancial information of the Company and its joint operations to express an opinion on thestandalone financial statements. I am responsible for the direction supervision andperformance of the audit of the financial statements of such entities included in thestandalone financial statements of which I am the independent auditor. For the otherentities included in the standalone financial statements which have been audited by theother auditors such other auditors remain responsible for the direction supervision andperformance of the audits carried out by them. I remain solely responsible for my auditopinion.

I communicate with those charged with governance regarding among othermatters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that I identify during myaudit.

I also provide those charged with governance with a statement that Ihave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on my independence and where applicable related safeguards.

From the matters communicated with those charged with governance Idetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Idescribe these matters in my auditors' report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances I determine that amatter should not be communicated in my report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Other Matter

I did not audit the financial statements of Two branches and Sixjointly controlled operations included in the standalone financial results of the Companywhose results reflect total assets of Rs. 51.06 crores as at 31st March 2021 and totalrevenues of Rs. 145.94 crores and Rs.45.93 crores net profit/(Loss) after tax of (Rs.3.48crores) and Rs.(0.41 crores) and total comprehensive income of Rs.Nil for the year endedMarch 31st 2021 and for the period 01.01.2021 to 31.03.2021 respectively and net cashflows amounting to Rs.55.45 crores for the year then ended. These branch financialstatements have not been audited by other Auditors whose reports and These JV's financialstatements have been audited by other Auditors whose reports have been furnished to me bythe Management and my opinion on the consolidated Financial Results in so far as itrelates

to the amounts and disclosures included in respect of these entitiesis based solely on the report of such auditors and the procedures performed by me are asstated in paragraph above. My opinion is not modified in respect of this matter.

Emphasis of Matter

I invite attention to:

The mobilisation advance received by the Company from certaindepartments and the proportionate amount which has to be classified as GST liability hasbeen shown as mobilisation advance liability to the extent of Rs. 1.99 Crores (Refer NoteNo. 23).

My Opinion is not modified in respect of this matter.

<p >Report on Other Legal and Regulatory Requirements

As required by the Companies (Auditor's Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of subsection (11) ofsection 143 of the Companies Act 2013 I give in the Annexure-B a statement on thematters specified in paragraphs 3 and 4 of the Order to the extent applicable.

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

(a) I have sought and obtained all the information and explanationswhich to the best of my knowledge and beliefwewere necessary for the purposes of my audit.

(b) I n my opinion proper books of account as required by law havebeen kept by the Company so far as it appears from my examination of those books.

(c) The reports and accounts of the branch offices situated in Srilankaand Bangladesh have not been audited by me and I have not received any audit report forthe same.

(d) The Balance Sheet the Statement of Profit and Loss and the CashFlow Statement dealt with by this Report are in agreement with the books of accounts.

(e) I n my opinion the aforesaid standalone financial statementscomply with the Accounting Standards specified under Section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014.

(f) On the basis of the written representations received from thedirectors as on 31st March 2021 taken on record by the Board of Directors none of thedirectors are disqualified as on 31st March 2021 from being appointed as a director interms of Section 164 (2) of the Act.

(g) With respect to the adequacy of the internal financial controlsover financial reporting of the Company and the operating effectiveness of such controlsrefer to my separate Report in "Annexure A".

(h) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in myopinion and to the best of my information and according to the explanations given to me:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its financial statements - Refer Note No. 39 to the financialstatements.

ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses.

iii. There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Holding Company and its subsidiarycompanies associate companies and jointly controlled companies incorporated in India.

ANNEXURE 'A' TO THE INDEPENDENT AUDITORS' REPORT

Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")

I have audited the internal financial controls over financial reportingof RPP Infra Projects Limited as of March 31 2021 in conjunction with my audit of thestandalone 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 andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to company's policies the safeguarding ofits assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors' Responsibility

My responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on my audit. I conducted my audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls. Those Standards and the GuidanceNote require that i comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively in all material respects. My audit involves performing procedures to obtainaudit evidence about the adequacy of the internal financial controls system over financialreporting and their operating effectiveness. My audit of internal financial controls overfinancial reporting included obtaining an understanding of internal financial controlsover financial reporting assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgement including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error.

I believe that the audit evidence I have obtained is sufficient andappropriate to provide a basis for my audit opinion on the Company's internal financialcontrols system over financial reporting except relating to the branches in Srilanka andBangladesh.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures 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 asnecessary to permit preparation of 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 timelydetection of unauthorised acquisition use or disposition of the company's assets thatcould have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over FinancialReporting

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In my opinion the Company has in all material respects an adequateinternal financial controls system with reference to standalone financial statements andsuch internal financial controls with reference to standalone financial statements Ireoperating effectively as at 31 March 2020 except relating to the branches in Srilanka andBangladesh for which i have neither audited nor received an Independent Auditor's reporton the same based on the internal control with reference to financial statements criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note issued by the ICAI.

ANNEXURE 'B' TO THE INDEPENDENT AUDITORS' REPORT

The Annexure referred to in Independent Auditors' Report to the membersof the Company on the standalone Ind AS financial statements for the year ended 31st March2021.

According to information and explanations given to me I report that:

1. In respect of the Company's fixed assets:

a) The company has maintained proper records showing full particularsincluding quantitative details and situation of fixed assets.

b) The fixed assets have been physically verified by the managementduring the year which in my opinion is reasonable having regard to the size of thecompany and the nature of its assets. No material discrepancies were noticed on suchverification.

c) The title deeds of all the immovable properties of the Company shownunder the Fixed Assets schedule are held in the name of Company.

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

3. According to the information and explanations given to us theCompany has not granted any loans secured or unsecured to companies firms limitedliability partnerships or other parties covered in the register maintained under Section189 of the Act. Accordingly the provisions of clause 3(iii) (a) (b) and (c) of the Orderare not applicable to the Company.

4. In my opinion and according to explanations given to me the companyhas complied with the provisions of the sections 185 and 186 of the Act with respect tothe loans given investment made guarantees and security given.

5. The Company has not accepted any deposits from the public and hencethe directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76or any other relevant provisions of the Act and the Companies (Acceptance of Deposit)Rules 2015 with regard to the deposits accepted from the public are not applicable.

6. I have broadly reviewed the books of account maintained by thecompany pursuant to the Rules made by the Central Government for the maintenance of costrecords u/s 148 of the Act and are of the opinion that prima facie the prescribedaccounts and records have been made and maintained. I have however not made a detailedexamination of the cost records with a view to determine whether they are accurate orcomplete.

7. According to the information and explanations given to me inrespect of statutory dues:

a) Undisputed statutory dues including provident fund employees' stateinsurance income-tax Goods and Service tax duty of customs cess and any otherstatutory dues to the appropriate authorities have generally been regularly depositedexcept the Income Tax due of financial year 2018-19 which is not paid with the appropriateauthorities.

Name of the Statute Nature of Liability Amount in Rs.
Income Tax Act Income tax - 2018 - 2019 17331375

b) Undisputed statutory dues including provident fund employees' stateinsurance income-tax Goods and Service tax duty of customs cess and any otherstatutory dues to the appropriate authorities have generally been regularly deposited withthe appropriate authorities though there had been delays in the following cases

Name of the Statute Nature of Liability Amount in Rs.
Goods and Service Tax Act Tax payable under Reverse Charge Mechanism 4236926
Service Tax Act Service tax liability 5363313
Income Tax Act Income tax - 2016-17 1328336
Income Tax Act Income tax - 2014-15 10979556
Income Tax Act Income tax - 2010-11 4995806
Income Tax Act Income tax - 2011-12 3099224

c) Details of dues of Income Tax and Service Tax which have not beendeposited as at March 312021 on account of dispute are given below:

Name of Statute Nature of the due Amount in Rs. Period to which the amount relates Forum where the dispute is pending Date of Demand Raised Date of Response Amount Unpaid Remarks
Income Tax Act Income Tax 5066 2005-06 The Deputy Commissioner of Income Tax Central Circle II Coimbatore 29/10/2008 29/05/2015 - Transaction- ID 2156246968 5066 A detail of Demand is not known. Requested for the demand details.
Income Tax Act Income Tax 2414650 2005-06 The Deputy Commissioner of Income Tax Central Circle II Coimbatore 17/08/2007 12/05/2015 - 2140626493 2414650 A detail of Demand is not known. Requested for the demand details.
Income Tax Act Income Tax 8268 2007-08 The Deputy Commissioner of Income Tax Central Circle II Coimbatore 19/3/2010 29/05/2015 - 2156248760 8268 A detail of Demand is not known. Requested for the demand details.
Income Tax Act Income Tax 2546 2008-09 The Deputy Commissioner of Income Tax Central Circle II Coimbatore 23/02/2011 29/05/2015 - 2156249791 2546 A detail of Demand is not known. Requested for the demand details
Income Tax Act Income Tax 6733908 2008-09 The Deputy Commissioner of Income Tax Central Circle II Coimbatore 16/11/2017 6733908 Response not submitted till date.
Income Tax Act Income Tax 14181035 2009-10 The Deputy Commissioner of Income Tax Central Circle II Coimbatore 21/08/2019 4023428 Portal not updated since 2016. To give effect to assessment order. And also the tax paid in the 3 instalments.
Income Tax Act Income Tax 24729787 2010-11 The Deputy Commissioner of Income Tax Central Circle II Coimbatore 21/08/2019 6640035 Portal not updated since 2016. To give effect to assessment order. And also the tax paid in the 3 instalments.
Income Tax Act Income Tax 0 2011-12 The Deputy Commissioner of Income Tax Central Circle II Coimbatore 21/08/2019 0 Portal not updated since 2016. To give effect to Order under Sec 245D(6) Dated 20/06/2019.
Income Tax Act Income Tax 0 2012-13 The Deputy Commissioner of Income Tax Central Circle II Coimbatore 21/08/2019 0 Portal not updated since 2016. To give effect to Order under Sec 245D(6) Dated 20/06/2019.
Income Tax Act Income Tax 688497 2013-14 Income Tax Department-CPC 21/08/2019 688497
Income Tax Act Income Tax 2149664 2014-15 Income Tax Department-CPC 21/08/2019 2149664
Income Tax Act Income Tax 920190 2015-16 Income Tax Department-CPC 30/01/2020 920190 Appeal filed on 26/02/2021.
Income Tax Act Income Tax 43651960 2015-16 Income Tax Department-CPC 30/01/2020 43651960 Appeal filed on 26/02/2021.
Income Tax Act Income Tax 3517720 2016-17 Income Tax Department-CPC 15/03/2021 3517720 Portal not updated. Give effect to the appellate order.
Income Tax Act Income Tax 70102480 2016-17 Income Tax Department-CPC 15/03/2021 70102480 Portal not updated. Give effect to the appellate order.
Income Tax Act Income Tax 2852590 2017-18 Income Tax Department-CPC 16/10/2019 0 Rectification request 143(3) to be placed.
Income Tax Act Income Tax 102044700 2017-18 Income Tax Department-CPC 16/10/2019 0 Rectification request 143(3) to be placed.
Income Tax Act Income Tax 59666460 2018-19 Income Tax Department-CPC 21/03/2021 59666460 Response to 143(1) is yet to be made.
Service Tax Act Service Tax 2.52 Crores 2004-09 Commissioner of Central excise dept 13/12/2010 2.52 Crores Awaiting decision or order in response to the appeal filed from the department.
Service Tax Act Service Tax 0.63 Crores 2010 Commissioner of Central excise dept 13/12/2010 0.63 Crores Awaiting decision or order in response to the appeal filed from the department.
Service Tax Act Service Tax 1.87 Crores 2010-11 Commissioner of Central excise dept 13/12/2010 1.87 Crores Awaiting decision or order in response to the appeal filed from the department.
Service Tax Act Service Tax 3.44 Crores 2012 Commissioner of Central excise dept 13/12/2010 3.44 Crores Awaiting decision or order in response to the appeal filed from the department.
Service Tax Act Service Tax 2.18 Crores 2012-13 Commissioner of Central excise dept 13/12/2010 2.18 Crores Awaiting decision or order in response to the appeal filed from the department.
Service Tax Act Service Tax 12.29 Crores 2014-17 Commissioner of Central excise dept 30/12/2020 12.29 Crores
Value Added Tax VAT 97.57Crores 2012-15 Commissioner of Commercial Tax dept 04/11/2020 97.57 Crores Petition filed in the High court.
Income Tax Act TDS 538000 Income Tax Department-CPC 538000

8. Based on my audit procedures I have the opinion that the companyhas not defaulted in repayment of dues to its bank financial institution and to theGovernment for the year ended 31-03-2021. There are no Debenture holders for the Company.

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

10. Based upon the audit procedures performed I report that no fraudby the company and no fraud on the Company by its officers / employees has been noticed orreported during the course of my audit.

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

12. The Company is not a Nidhi Company and therefore clause 3(12) ofthe Order is not applicable to the Company and i do

not comment upon this provision.

13. I n my opinion all the Related Party Transactions entered into bythe Company during the year are in compliance with the provisions Sec. 188 & 177 ofthe Act and the details thereof have been disclosed in the Financial Statements asrequired by the Accounting standards and the Act.

14. The Company has made a private placement of shares during the yearand the requirement of sec 42 have been complied with and amount raised has been used forthe purpose for which it was raised.

15. The Company has not entered into any non-cash transactions withdirectors/ persons connected with him as stipulated u/s. 192 of the Act. Clause 3(15) ofthe Order is therefore not applicable to the Company.

16. In my opinion the Company is not required to be registered u/s45-IA of the Reserve Bank of India Act 1934.

For CA S.N. Duraiswamy
Chartered Accountant
Place: Erode Membership No. : 026599
Date: 01 June 2021 UDIN :21026599AAAADT8001

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