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S.S. Infrastructure Development Consultants Ltd.

BSE: 535070 Sector: Infrastructure
NSE: SSINFRA ISIN Code: INE182Z01015
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S.S. Infrastructure Development Consultants Ltd. (SSINFRA) - Auditors Report

Company auditors report

To

The Members

S.S. Infrastructure Development Consultants Limited

(formerly known as SS Infrastructure Development Consultants Pvt. Ltd.)

Hyderabad.

Report on the Audit of the Standalone Financial Statements

Opinion

We have audited the Standalone Financial Statements of S.S. Infrastructure DevelopmentConsultants Limited (formerly known as SS Infrastructure Development Consultants Pvt.Ltd.) ("the Company)") which comprise the Balance sheet as at 31st March 2020the Statement of Profit and Loss and Statement of Cash Flows for the year then ended andnotes to the financial statements including a summary of significant accounting policiesand other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us except for the possible effects of the matters described and attention towhich was drawn in the 'Emphasis of Matter' paragraph the aforesaid standalone financialstatements give the information required by the Act in the manner so required and give atrue and fair view in conformity with the accounting principles generally accepted inIndia of the state of affairs of the Company as at March 31 2020 the profit and itscash flows for the year ended on that date

IMPACT OF THE COVID PANDEMIC ON THE OPERATIONS

Due to the COVID pandemic the whole country is under lockdown subject to different typeof restrictions since March 242020 and most of the industrial and commercial activity inthe Country has been affected due to the lockdown restrictions imposed.

The COVID-19 pandemic has rapidly spread across the world as well as In India and hascaused shutdown of all offices and factories from March 24 2020. The Company has resumedits operations in a phased manner In line with the directives of the Government of India.The Company's management has made initial assessment of likely adverse Impact on businessand believes that the impact is likely to be from short to medium term in nature. Themanagement does not see long term risks in the Company's ability to continue as a goingconcern and meeting its liabilities as and when they fall due. The Management has alsoevaluated the recoverability of receivables and realisability of inventory on hand basedon subsequent realisations and customer orders respectively. However given theuncertainties associated with the eventual outcome nature and duration of the pandemicthe impact may be different from that estimated as on the date of approval of thesefinancial statements

Emphasis of Matter

01. Overdue Receivables

We refer to Note No. 22(a) dealing with Collection of Trade Receivables. Out of thetotal receivables of Rs. 279819406 about Rs. 946 Lacs are due and outstanding for morethan one year. The Company has not made any provision for the overdue outstanding based onthe justification as provided in Note No. 22(a).

02. Loans and Advances

The Short Term Loans and Advances include a total amount of Rs.67587509/- towardsWorks Contracts Salary and other Advances to staff etc. which are outstanding for morethan one year. The Company represents that the amounts are recoverable in the normalcourse against services in progress or by way of refund and hence the Company has not madeany provision for the balances.

Our opinion is not modified on the above matters.

Basis for Opinion

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditor's Responsibilities for the Audit of theFinancial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthere-under and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.

Information other than the financial statements and auditor's report thereon

The company's board of directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the Board'sreport including Annexure to Board's report Business responsibility report but does notinclude Financial statements and our auditor's report thereon.

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

In connection with our audit of the financial statements our responsibility is it toread the other information and in doing so consider whether the other information ismaterially inconsistent with the standalone financial statements or our knowledge obtainedduring the course of our audit or otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters.

Accuracy of revenues and obligations in respect of fixed price contracts involvescritical estimates

The company is engaged in the business of Engineering Consultancy and StructuralEngineering Services to various entities including Government

Agencies Public Sector Enterprises and earns revenues from such business operations.It recognises its revenue in any financial year based on certain estimates made withreference to scope of agreement stage of completion of work based on the relevantagreements with its clients. Consequently the balances of receivables depend on suchestimates.

Estimated effort is a critical estimate to determine revenues receivables andliability for obligations. This estimate has a high inherent uncertainty as it requiresconsideration of progress of the contract efforts incurred till date efforts required tocomplete the remaining contract performance obligations.

Response to Key Audit Matters Principal Audit Procedures

Our audit approach was a combination of test of internal controls and substantiveprocedures which included after taking into account the size of the company evaluationof the design of internal controls on test check basis and review of a sample ofcontracts.

Conclusion

Our procedures did not identify any material exceptions

Management's Responsibility for the Standalone 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 financial statements that give a true and fair view of the financialposition financial performance changes in equity and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards specified under section 133 of the Act. This responsibility alsoincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding of the assets of the Company and for preventing and detectingfrauds and other irregularities; selection and application of appropriate 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 statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

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.

The Board of Directors are also responsible for overseeing the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance withStandards of Auditing (SAs) will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under section 143(3)(i)of the Companies Act 2013 we are also responsible for expressing our opinion on whetherthe Company has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

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

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

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 Companies Act 2013 we give in the Annexure A a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

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) 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 standalone financial statements comply with theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014.

(e) On the basis of written representations received from the directors as on 31 March2020 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2020 from being appointed as a director in terms of Section 164(2) of theAct.

(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 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:

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 derivatives contracts forwhich there were any material foreseeable losses; and

iii. There were no amounts which were required to be transferred to the InvestorEducation and Protection Fund by the Company.

(h) In our opinion and according to the information provided and explanations offeredto us the remuneration paid to the directors of the company is in accordance with theprovisions of sec.197. The remuneration paid to any director is not in excess of thelimits laid down u/s.197. The Ministry of Corporate Affairs has not prescribed otherdetails u/s.197(16) which required to be commented upon by us.

AnnexureA

ANNEXURE TO THE AUDITORS' REPORT

S.S. Infrastructure Development Consultants Limited

(formerly known as SS Infrastructure Development Consultants Pvt. Ltd.)

(Of even date referred to in Para 1 of our Report)

(i) a) Based on information provided by us the Company has maintained proper recordsshowing full particulars including quantitative details and situation of fixed assets.

b) All the Fixed Assets have not been physically verified by the management during theyear but there is a regular program of verification which in our opinion is reasonablehaving regard to the size of the Company and nature of its assets and to the best of ourknowledge no material discrepancies were noticed on such verification;

c) Based on the information given to us the Company does not have any immovableproperties and hence clause 3(i)(c) is not applicable to the Company for the year.

(ii) As explained and information given to us physical verification of inventories hasbeen conducted by the Management at reasonable intervals and no material discrepancieswere noticed on physical verification of inventory.

(iii) Based on the information provided to us the Company has granted not any loanssecured or unsecured to companies firms Limited Liability Partnerships or other partiescovered in the register maintained under section 189 of the Companies Act 2013 hence inour opinion the Clause 3(iii)(a) 3(iii)(b) and 3(iii)(c) are not applicable to theCompany for the year.

(iv) Based on the information provided to us the Company has not given any loanguarantee not provided any security in connection with a loan and not acquired anysecurity during the year and hence in our opinion the clause 3(iv) is not applicable tothe Company during the year.

(v) Based on the information provided to us the Company has not accepted any depositsduring the year and hence in our opinion the Clause 3(v) is not applicable to theCompany for the year.

(vi) Based on the explanations given to us the Central Government has not specifiedmaintenance of Cost Records under Section 148 of the Companies Act 2013 and hence clause3(vi) is not applicable to the Company during the year.

(vii) (a) According to the records of the Company the Company is not generally regularand there have been delays in depositing the undisputed statutory dues including providentfund employees' state insurance income-tax sales-tax service tax duty of customsduty of excise value added tax cess with the appropriate authorities;

According to the information and explanations given to us no undisputed amountspayable in respect of Provident Fund Employees' State Insurance Income-tax Sales taxWealth tax Service tax Duty of Customs Duty of Excise Value added tax and othermaterial statutory dues were in arrears as at 31 March 2020 for a period of more than sixmonths from the date they became payable except to the extent mentioned hereunder:

Enactment Duties & Taxes Amount Period for which dues relate Due Date Remarks
Income Tax Act Dividend Tax Payable 946863 April 2019 to September 2019 Within 14 days of declaration of dividend or payment of dividend Paid as of 31.07.2020
Employees Provident Fund Act EPF Payable 915351 April 2019 to September 2019 15th of the Succeeding Month Paid as of 31.07.2020
Central GST Act GST Payable 5924383 April 2019 to September 2019 20th of the Succeeding Month Paid as of 31.07.2020
Telangana Professional Tax Act PT Employees Payable 392950 April 2019 to September 2019 15th of the Succeeding Month Outstanding to be paid
Income Tax Act TDS Payable- Contractors 56251 April 2019 to September 2019 7th of the Succeeding month Paid as of 31.07.2020
Income Tax Act TDS Payable- Professional 1564700 April 2019 to September 2019 7th of the Succeeding month Paid as of 31.07.2020
Income Tax Act TDS Payable Remuneration 4641197 April 2019 to September 2019 7th of the Succeeding month Paid as of 31.07.2020

(b) According to the information and explanations given to us there are no dues ofVAT income tax customs duty excise duty service tax cess to be deposited on accountof any dispute and hence clause 3(vii)(b) is not applicable to the Company during theyear.

(viii) Based on the information provided and explanation given to us we are of theopinion that the Company has not defaulted in repayment of dues to Banks FinancialInstitutions and hence clause 3(viii) is not applicable to the Company during the period.

ix) In our opinion and according to the information and explanations given to us theCompany has utilized the money raised by way of initial public offer/ further public offer(including debt instruments) and the term loans during the year for the purposes for whichthey were raised except for

Nature of the Fund Raised Details of Default Amount Rs. Subsequently Rectified
Initial Public Officer Expenditure on Project at Dubai not incurred 49.14 Lacs As the project at Dubai is not feasible the expenditure was not incurred

(x) In our opinion and according to the information provided and explanations offeredto us no fraud on or by the Company has been noticed or reported during the year.

(xi) In our opinion and according to the information provided and explanations offeredto us the managerial remuneration has been paid / provided in accordance with theprovisions of section 197 read with Schedule V to the Companies Act.

(xii) Based on the explanations given to us in our opinion the Company is not a NidhiCompany as per section 406 of the Companies Act2013 and hence clause 3(xii) is notapplicable to the Company.

(xiii) Based on the information provided and explanation given to us in our opinionall transactions with the related parties are in compliance with sections 177 and 188 ofCompanies Act 2013 where applicable and the details have been disclosed in the FinancialStatements etc. as required by the applicable accounting standards;

(xiv) The Company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review and henceclause 3(xiv) is not applicable to the Company during the year.

(xv) As per the information given to us the Company has not entered into any non-cashtransactions with directors or persons connected with them during the year under reviewand so clause 3(xv) is not applicable to the Company during the year.

(xvi) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934 and so clause (xvi) is not applicable to this Company.

Place : Hyderabad For M/s A Ramachandra Rao & Co
Date: 31st July 2020 Chartered Accountants
ICAI Firm Regn No. 002857S
Sd/-
P S R V V Surya Rao
Partner
Membership No.202367
UDIN : 202367AAABWA1154

Annexure B

ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE FINANCIAL STATEMENTSOF

S.S. Infrastructure Development Consultants Limited

(formerly known as SS Infrastructure Development Consultants Pvt. Ltd.)

[Re : Clause 2(f) of 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 S.S.Infrastructure Development Consultants Limited (formerly known as SS InfrastructureDevelopment Consultants Pvt. Ltd.) as of March 31 2020 in conjunction with our audit ofthe standalone financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to Company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingand the Standards on Auditing issued by ICAI and deemed to be prescribed under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects. Our audit involves performing procedures to obtainaudit evidence about the adequacy of the internal financial controls system over financialreporting and their operating effectiveness. Our 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. 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 system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A Company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A Company's internal financial control over financialreporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the Company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the Company are being made only inaccordance with authorisations of management and directors of the Company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the Company's assets that could have amaterial effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

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

Opinion

In our opinion considering its size and the nature of its business the Companyrequires to strengthen the internal controls with regard to recognition of income andrecording of expenditure based on appropriate documents monitoring and timely payment ofStatutory dues obtaining confirmation of balances and review and reconciliation ofaccount balances. Subject to this the Company has an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2020 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

Place : Hyderabad For M/s A Ramachandra Rao & Co
Date: 31st July 2020 Chartered Accountants
ICAI Firm Regn No. 002857S
Sd/-
P S R V V Surya Rao
Partner
Membership No.202367
UDIN : 202367AAABWA1154

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