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Ruchi Infrastructure Ltd.

BSE: 509020 Sector: Others
NSE: RUCHINFRA ISIN Code: INE413B01023
BSE 00:00 | 25 May 8.74 -0.40
(-4.38%)
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9.47

HIGH

9.47

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8.69

NSE 00:00 | 25 May 8.80 -0.25
(-2.76%)
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9.30

HIGH

9.30

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OPEN 9.47
PREVIOUS CLOSE 9.14
VOLUME 46936
52-Week high 14.74
52-Week low 6.29
P/E 33.62
Mkt Cap.(Rs cr) 179
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 9.47
CLOSE 9.14
VOLUME 46936
52-Week high 14.74
52-Week low 6.29
P/E 33.62
Mkt Cap.(Rs cr) 179
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Ruchi Infrastructure Ltd. (RUCHINFRA) - Auditors Report

Company auditors report

To

The Members of

Ruchi Infrastructure Limited

Report on the Standalone Financial Statements

Opinion

We have audited the standalone financial statements of RuchiInfrastructure Limited ("the Company") which comprise the balance sheet asat 31st March 2021 and the statement of Profit and Loss (including other comprehensiveincome) statement of changes in equity and statement of cash flows for the year thenended and notes to the financial statements including a summary of significantaccounting policies and other explanatory information.

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with accounting principles generally accepted in India of the state of affairsof the company as at 31s' March 2021 and its profit (including othercomprehensive income) the changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Companies Act 2013. Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the Standalone Financial Statements section of our report.We are independentof the Company in accordance with the Code of Ethics issued by the Institute ofChartered Accountants of India ("ICAI") together with the ethical requirementsthat are relevant to our audit of the financial statements under the provisions of theCompanies Act 2013 and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion on the standalone financial statements.

Key Audit Matters

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

Key Audit Matters Auditor's Response
Recoverability of Export Trade Receivable Audit Procedure
As at the year end March 31 2021 Trade receivable includes Export trade receivable amounting to Rs. 3981.27 lacs doubtful of recovery. Permission is pending with RBI for its write off. We have verified the documents filed by company with RBI and RBI has recommended to recover the dues. However company has made adequate provision for the same.

Information Other than the Financial Statements and Auditor's ReportThereon

The Company's Board of Directors is responsible for the preparation ofthe other information. The other information comprises the information included in theManagement Discussion and Analysis Board's Report including Annexures to Board's ReportBusiness Responsibility Report Corporate Governance and Shareholder's Information butdoes not include the financial statements and our auditor's report thereon.

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

In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.

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 including other comprehensive income changes inequity and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the accounting Standards (Ind AS) specified undersection 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding of theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate implementation and maintenance of accountingpolicies; making judgments and estimates that are reasonable and prudent and designimplementation 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 financial statement that givea true and fair view and are free from material misstatement whether due to fraud orerror.

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.

Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.

Auditor's Responsibilities for the Audit of the Standalone FinancialStatements

Our 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 our 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 we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

a. Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

b. Obtain an understanding of internal financial controls relevant tothe audit in order to design audit procedures that are appropriate in the circumstances.Under section 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls in place and the operatingeffectiveness of such controls.

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

d. 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 we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.

e. 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.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

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

From the matters communicated with those charged with governance wedetermine 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. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Other Matter

The comparative financial information of the Company for the year ended31st March 2020 are based on the financial statements audited by the predecessor auditorwhose report for the year ended 31st March 2020 dated 29.06.2020 expressed an unmodifiedopinion on those financial statements.

Our opinion on the financial statements above is not modified inrespect of these matter.

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 we give in the Annexure A 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 Actwe report that:

a. We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

b. In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.

c. The Balance Sheet the Statement of Profit and Loss (including OtherComprehensive Income) Statement of Changes in Equity and the Statement of Cash Flow dealtwith by this Report are in agreement with the books of account.

d. In our opinion the aforesaid standalone financial statements complywith the Accounting Standards specified under Section 133 of the Act read with Companies(Indian Accounting Standard) Rules 2015 as amended.

e. 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 is disqualified as on 31st March 2021 from being appointed as a director interms of Section 164 (2) of the Act.

f. With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B".

g. With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11of the Companies (Audit and Auditors) Rules 2014 in ouropinion and to the best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its financial statements - Refer Note 31 to the financialstatements;

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

iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.

h. With respect to the matter to be included in the Auditors' Reportunder Section 197(16) of the Act In our opinion and according to the information andexplanations given to us the remuneration paid by the Company to its directors during thecurrent year is in accordance with the provisions of Section 197 read with Schedule V tothe Act.

For SMAK & Co.
Chartered Accountants
(Firm Reg. No. 020120C)
CA Atishay Khasgiwala
Place : Indore (Partner)
Date : 28.06.2021 M.No.417866
UDIN : 21417866AAAACT1611

Annexure A to Independent Auditor's Report

Referred to in paragraph (1) under the heading of "Report on OtherLegal and Regulatory Requirements" of our report of even date to the members of RuchiInfrastructure Limited on the standalone financial statements for the year ended 31stMarch 2021.

i. In respect of its Fixed Assets :

a. The Company is maintaining proper records showing full particularsincluding quantitative details and situation of fixed assets.

b. The company has a program of verification to cover all the items offixed assets in a phased manner which in our opinion is reasonable having regard to thesize of the Company and the nature of its assets. Pursuant to the program certain fixedassets were physically verified by the management during the year and no materialdiscrepancies have been noticed on such verification. In our opinion the frequency ofverification is reasonable.

c. According to the information and explanations given to us and on thebasis of our examination of the records of the Company the title deeds of immovableproperties are held in the name of the Company.

ii. In respect of its Inventories:

The inventories has been physically verified by the Management duringthe year. In our opinion the frequency of verification is reasonable and no materialdiscrepancies were noticed.

iii. According to the information and explanations given to us theCompany has granted unsecured loans to two companies covered in the register maintainedunder section 189 of the Companies Act 2013. The company has not granted any loanssecured or unsecured to firms LLPs or other parties covered in the register maintainedunder section 189 of the Companies Act 2013. In respect of the aforesaid loans granted :

a. The terms and conditions of the grant of such loans are notprejudicial to the company's interest;

b. The repayment of principal and receipts of interest is regular asstipulated

c. There is no amount overdue for more than 90 days as on balance sheetdate.

iv. In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of section 185 and 186 of theAct with respect to the investment made loans and guarantee given. The company has notprovided any security in terms of section 185 and 186 of the Act.

v. In our opinion and according to the information and explanationsgiven to us the Company has not accepted deposits from the public within the meaning ofSection 73 to 76 or any other relevant provisions of the Companies Act 2013 and theRules framed there under. As informed to us no Order has been passed by the Company LawBoard or National Company Law Tribunal or Reserve Bank of India or any court or any otherTribunal.

vi. We have broadly reviewed the cost records maintained by the Companypursuant to the rules made by the Central Government under sub-section (1) of Section 148of the Companies Act 2013 and are of the opinion that prima facie the prescribed recordshave been made and maintained. We have however not made a detailed examination of thecost records with a view to determine whether they are accurate or complete.

vii. In respect of Statutory dues :

a) According to the information and explanations given to us and therecords of the Company examined by us in our opinion the Company is generally regular indepositing undisputed statutory dues including provident fund employee's state insuranceincome tax goods and service tax duty of customs cess and other statutory duesapplicable to it with the appropriate authorities. There were no undisputed statutory duesin arrears as at 31st March 2021 for a period of more than six months fromthe date they became payable.

b) According to the information and explanations given to us the duesof sales tax value added tax income tax service tax which have not been deposited withappropriate authorities on account of any dispute are as follows :

Name of the Statute Nature of Liability Amount Related Period Forum where dispute is pending
Sales Tax / VAT Acts Sales Tax /VAT 4548.08 2013-14 to 2014-15 Gujarat VAT Tribunal
Sales Tax / VAT Acts Sales Tax /VAT 14957.19 2015-2016 Gujarat VAT Tribunal
Sales Tax / VAT Acts Entry Tax 70.54 2013-2014 The High Court Kolkatta
Sales Tax / VAT Acts Sales Tax /VAT 126.88 2012-13 to 2015-16 The Commissioner Appeals Cuttack
Sales Tax / VAT Acts Sales Tax /VAT 138.64 2008-09 & 2011-12 Orissa VAT Tribunal
Central Excise & Service Tax Act Service Tax 260.76 2009-2010 to 2014-15 CESTAT New Delhi
Central Excise & Service Tax Act Service Tax 117.88 2011-12 & 2012-13 The High Court New Delhi
Central Excise & Service Tax Act Service Tax 5.49 2013-2014 to 2014-15 CESTAT New Delhi
Central Excise & Service Tax Act Service Tax 98.92 2014-15 to 2016-17 The Commissioner Indore
Income Tax Act Income Tax 5.78 2007-2008 to 2009-10 CIT ( Appeals) Mumbai
Income Tax Act Income Tax 22.92 2016-17 CIT ( Appeals) Mumbai

viii. Further in view of the extension of time granted vide a circularof Reserve Bank of India (RBI) RBI/2019-20/186 dated March 27 2020 and RBI/2019-20/244dated May 23 2020 for the payment of interest and principal for term loans falling duebetween March 1 2020 and May 31 2020 which is further extended to August 31st 2020the Company has availed the moratorium for payment of the aforesaid dues on term loansoutstanding to South Indian Bank as at the year end. Accordingly interest of Rs. 283.37lacs and Principal of Rs. 437.50 lacs is deferred by bank

ix. In our opinion and according to the information and explanationsgiven to us the company has not raised money by way of initial public offer or furtherpublic offer (including debt instruments) and In our opinion and according to theinformation and explanations given to us the company has not raised any term loan duringthe year.

x. According to the information and explanations given to us and to thebest of our knowledge no material fraud by the Company or on the company by the officersor employees has been noticed or reported during the year.

xi. According to the information and explanations given to us and basedon our examination of the records of the Company the Company has paid / provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with Schedule V to the Act.

xii. In our opinion and according to information and explanation givento us the company is not a Nidhi Company therefore the provision of para 3 (xii) of theOrder is not applicable to the company.

xiii. According to the information and explanations given to us andbased on our examination of the records of the Company transactions with the relatedparties are in compliance with sections 177 and 188 of the Act where applicable anddetails of such transactions have been disclosed in the financial statements as requiredby the applicable accounting standards (Ind AS).

xiv. According to the information and explanations given to us andbased on our examination of the records of the company the company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year therefore the provision of para 3 (xiv) of the Order is notapplicable to the company.

xv. In our opinion and according to the information and explanationsgiven to us the company has not entered into any non-cash transactions with directors orpersons connected with him during the year hence the provision of para 3 (xv) of theOrder is not applicable to the company.

xvi. The company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934 therefore the provision of para 3 (xvi) of theOrder is not applicable to the company for the year under audit.

For SMAK & Co.
Chartered Accountants
(Firm Reg. No. 020120C)
CA Atishay Khasgiwala
Place : Indore (Partner)
Date : 28.06.2021 UDIN : 21417866AAAACT1611 M.No.417866

Annexure B To the Independent Auditor's Report of even date on theStandalone Financial Statements of Ruchi Infrastructure Limited Report on the InternalFinancial Controls over Financial Reporting under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting of Ruchi Infrastructure Limited ("the Company") as of March 31 2021in conjunction with our audit of the standalone financial statements of the Company forthe 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 respective company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our 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 theextent applicable to an audit of internal financial controls. 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 aboutthe adequacy of the internal financial controls over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols over financial reporting.

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 themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the company are being made only in accordance with authorizations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized 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 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 our opinion the Company has in all material respects an adequateinternal financial controls over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 312021 based on thecriteria for internal financial control over financial reporting established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

For SMAK & Co.
Chartered Accountants (Firm Reg. No. 020120C)
CA Atishay Khasgiwala
Place : Indore (Partner)
Date : 28.06.2021 UDIN : 21417866AAAACT1611 M.No.417866

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