You are here » Home » Companies » Company Overview » SPML Infra Ltd

SPML Infra Ltd.

BSE: 500402 Sector: Infrastructure
NSE: SPMLINFRA ISIN Code: INE937A01023
BSE 00:00 | 26 Jul 11.66 -0.10
(-0.85%)
OPEN

12.30

HIGH

12.30

LOW

11.51

NSE 00:00 | 26 Jul 11.70 -0.25
(-2.09%)
OPEN

12.20

HIGH

12.30

LOW

11.40

OPEN 12.30
PREVIOUS CLOSE 11.76
VOLUME 30894
52-Week high 18.09
52-Week low 6.95
P/E
Mkt Cap.(Rs cr) 43
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 12.30
CLOSE 11.76
VOLUME 30894
52-Week high 18.09
52-Week low 6.95
P/E
Mkt Cap.(Rs cr) 43
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

SPML Infra Ltd. (SPMLINFRA) - Auditors Report

Company auditors report

To the Members of SPML Infra Limited

Report on the Audit of the Standalone Financial Statements

Qualified Opinion

We have audited the accompanying standalone financial statements of SPML Infra Limited("the Company") which comprise the Balance Sheet as at 31st March 2020 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Statement of Cash Flows for the year then ended and notes tothe standalone financial statements including a summary of significant accountingpolicies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us and based on the consideration of the reports of other auditors in respect ofcertain joint operations as referred to in the Other Matters section of our reportbelow except for the effects/possible effects of the matters described in the Basisfor Qualified Opinion section of our report the aforesaid standalone financialstatements give the information required by the Companies Act 2013 ("the Act")in the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India including the Indian Accounting Standards("Ind AS") prescribed under Section 133 of the Act of the state of affairs ofthe Company as at 31st March 2020 its profit including other comprehensive incomechanges in equity and its cash flows for the year ended on that date.

Basis for Qualified Opinion

As stated in:

a. Note no.42 to the standalone financial statements interest on YTM basis amountingto Rs.5143.45 lakhs (31st March 2019: Rs.4731.86 lakhs) was not provided on OptionallyConvertible Debentures (‘OCDs') issued to lenders under S4A scheme. Had such interestprovision been made as required under the accrual basis of accounting for the year ended31st March 2020 the finance cost would have been higher and profit before tax would havebeen lower by Rs.5143.45 lakhs. Further since the issue of OCDs the total liability notprovided for in respect of such interest on YTM basis is Rs 11726.69 lakhs as at 31stMarch 2020. The Auditor's Report for the year ended 31st March 2019 was also qualifiedin respect of this matter.

b. Note no. 43 to the standalone financial statements regarding the Company's tradereceivables (net of ECL) and inventories as at 31st March 2020 of Rs.6142.27 lakhs andRs.1040.62 lakhs respectively (31st March2019: Rs.3402.74 lacs and Rs.1040.62 Lacsrespectively) relating to certain projects foreclosed by clients in earlier years andwhere the claims are presently under arbitration/ litigation proceedings. Pending theultimate outcome of these matters (fate of which is presently unascertainable) we areunable to comment on the recoverability thereof. The Auditor's Report for the year ended31st March 2019 was also qualified in respect of this matter.

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Act. Our responsibilities under those Standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Standalone FinancialStatements section of our report. We are independent of the Company in accordance withthe Code of Ethics issued by the Institute of Chartered Accountants of India("ICAI") together with the ethical requirements that are relevant to our auditof the standalone financial statements under the provisions of the Act and the Rulesthereunder 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 qualified opinion.

Emphasis of Matters

We draw attention to the following notes to the standalone financial statements:

(i) Note no. 44 regarding uncertainties relating to the recoverability of certaintrade & other receivables as at 31st March 2020 and recognition of interest incomethereon arising out of arbitration awards pronounced in favour of the Company.

(ii) Note no. 41 regarding write back of Rs.4692.01 lakhs in respect of certaincredit balances.

(iii) Note no. 24 on ‘Other Income' regarding ECL reversal (net) of Rs.2118.42lakhs in respect of Trade Receivables.

(iv) Note no. 29 on ‘Other Expenses' regarding impairment loss and expectedcredit loss in respect of investments made in and loans provided to certain subsidiariesassociates and a joint venture by the Company.

(v) Note no. 6.1 regarding initiation of Corporate Insolvency Resolution Process underIBC wef 23rd December 2019 in respect of Luni Power Company Ltd. a subsidiary of theCompany and matters arising therefrom.

(vi) Note no. 47 which describes the effects of uncertainties relating to COVID-19pandemic outbreak on the Company's operations and management's evaluation of its impact onthe standalone financial statements.

(vii) Note no. 48 which indicates that the Company has defaulted in payment of dues tofinancial creditors is facing working capital constraints and its borrowal facilities areirregular with certain financial creditors as at 31st March 2020. Based on ongoingdiscussion with such creditors for formulation of a resolution plan and other mitigatingfactors as mentioned in the aforesaid Note no. 48 the Company's Board of Directors is ofthe view that going concern basis of accounting is appropriate for preparation of thestandalone financial statements.

Our opinion is not modified in respect of these matters.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone financial statements of the current year.These matters were addressed in the context of our audit of the standalone financialstatements as a whole and in forming our opinion thereon and we do not provide aseparate opinion on these matters. In addition to the matters described in the Basisfor Qualified Opinion section hereinabove we have determined the matters describedbelow to be the key audit matter to be communicated in our report.

Key Audit Matter How our audit addressed the key audit matter
Assessment of impairment of non-current investments (refer Note no. 6 to the standalone financial statements). The Company as at 31st March 2020 had non-current investments of Rs.15523.61 Lacs (prior to impairment provision) almost entirely comprising of investments in subsidiaries associates and joint ventures. Our audit approach was a combination of test of internal controls and substantive procedures which included the following:
Due to the significance of the carrying amounts of the non-current investments and the significant management judgement involved in carrying out the impairment assessment this was considered to be a key audit matter of the standalone financial statements. Also refer Note no. 29 to the standalone financial statements in this regard. • Obtained an understanding of the management process for identification of possible impairment indicators and process followed by the management for impairment testing of non-current investments;
• Discussed extensively with management regarding impairment indicators and evaluated the design and testing operating effectiveness of controls;
• Assessed the methodology used by the management to estimate the recoverability of investment and ensured that it is consistent with applicable accounting standards;
• Verified the appropriateness of the key assumptions considered by the management/independent valuer as part of the impairment assessment.
• Evaluated the management's assessment of the ultimate outcome of the ongoing legal proceedings if any impacting a particular investment including analysis of the latest judgment pronounced relating to such proceedings or any legal opinion obtained by the management;
• Compared the carrying value of the non-current investment with the realizable value determined by the independent valuer to ensure there is no impairment/ provision required to be recognized.

Information other than the Standalone Financial Statements and Auditors Rs.Reportthereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Annual Report but does not includethe standalone financial statements and our auditor's report thereon. The Annual Report isexpected to be made available to us after the date of this auditor's report.

Our opinion on the standalone financial statements does not cover the other informationand we will not express any form of assurance conclusion thereon.

In connection with our audit of the standalone financial statements our responsibilityis to read the other information identified above when it becomes available and in doingso consider whether the other information is materially inconsistent with the standalonefinancial statements or our knowledge obtained in the audit or otherwise appears to bematerially misstated.

When we read the other information if we conclude that there is a materialmisstatement therein we are required to communicate the matter to those charged withgovernance.

Responsibilities of Management and Those Charged with Governance for the StandaloneFinancial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the financial position financialperformance changes in equity and cash flows of the Company in accordance with theaccounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) specified under section 133 of the Act read with Companies (IndianAccounting Standards) Rules 2015 as amended. This responsibility also includesmaintenance of adequate accounting records in accordance with the provisions of the Actfor safeguarding of the assets of the Company and for preventing and detecting frauds andother irregularities; selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the standalone financial statement that give a true andfair view and are free from material misstatement whether due to fraud or error.

In preparing the standalone 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 the Company's financialreporting process.

Auditor's Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalonefinancial 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 standalone 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.

Other Matters

a. We did not audit the financial statements/financial information of 6 (six) jointoperations included in the accompanying Statement whose financial statements/financialinformation reflect total assets of Rs.7828.10 lakhs as at 31st March 2020 totalrevenues of Rs.11884.46 lakhs and total net profit/ (loss) after tax of Rs.(300.51) lakhsfor the year ended on that date as considered in the standalone financial statements.These financial statements/financial information have been audited by other auditors whosereports have been furnished to us by the Company's management and our opinion on thestandalone financial statements in so far as it relates to the amounts and disclosuresincluded in respect of these joint operations is based solely on the audit reports ofsuch other auditors and on the procedures performed by us as stated in the section Auditor'sResponsibilities for the Audit of the Standalone Financial Statements hereinabove.

b. We did not audit the financial statements/financial information of 3 (three) jointoperations included in the accompanying Statement whose financial statements/financialinformation reflect total assets of Rs.9245.27 lakhs as at 31st March 2020 totalrevenues of Rs.4035.71 lakhs and total net profit/ (loss) after tax of Rs.(31.99) lakhsfor the year ended on that date as considered in the standalone financial statements.These financial statements/financial information are unaudited and have been furnished tous by the Company's management and our opinion on the standalone financial statements inso far as it relates to the amounts and disclosures included in respect of these jointoperations is based solely on such un-audited financial statements/financial information.In our opinion and according to the information and explanations given to us by theCompany's management these financial statements/financial information are not material tothe Standalone Financial Statements.

Our opinion is not modified in respect of these matters.

Report on Other Legal and Regulatory Requirements

1. 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 onthe matters specified in paragraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section 143(3) of the Act we report that:

a) We have sought and except for the possible effect of the matters described in the Basisfor Qualified Opinion section hereinabove obtained all the information andexplanations which to the best of our knowledge and belief were necessary for the purposesof our audit;

b) Except for the possible effects of the matters described in the Basis forQualified Opinion section hereinabove In our opinion proper books of account asrequired by law have been kept by the Company so far as it appears from our examination ofthose books;

c) The Balance Sheet the Statement of Profit and Loss including Other ComprehensiveIncome Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the books of account;

d) Except for the effects of the matters described in the Basis for QualifiedOpinion section hereinabove in our opinion the aforesaid standalone financialstatements comply with the Indian Accounting Standards specified under Section 133 of theAct read with Rule 7 of the Companies (Accounts) Rules 2014;

e) In view of the matters described in the Basis for Qualified Opinion sectionhereinabove we are unable to comment whether these may have an adverse effect on thefunctioning of the Company;

f) On the basis of the written representations received from the directors as on 31stMarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 from being appointed as a director in terms of Section164 (2) of the Act.;

g) The qualification relating to the maintenance of accounts and other mattersconnected therewith are as stated in the Basis for Qualified Opinion sectionhereinabove;

h) With respect to the adequacy of the internal financial controls with reference tofinancial statements of the Company and the operating effectiveness of such controlsrefer to our separate Report in "Annexure - B" ;

i) 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 has disclosed the impact of pending litigations on its financialposition in its standalone financial statements - Refer Note no. 30 to the standalonefinancial statements;

ii. Except for the possible effects of the matters described in the Basis for QualifiedOpinion section hereinabove the Company has made provision as required under theapplicable law or Ind AS for material foreseeable losses if any on long-term contractsincluding derivative contracts; and

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

3. In our opinion according to the information and explanations given to usremuneration paid by the Company to its directors for the year ended 31st March 2020 hasbeen in accordance with the provisions of section 197 read with Schedule V to the Act;

For Maheshwari & Associates
Chartered Accountants
FRN: 311008E
CA. Bijay Murmuria
Partner
Place: Kolkata Membership No. : 055788
Date: 18th August 2020 UDIN: 20055788AAAAAJ4889

Annexure-A to the independent Auditors Rs.Report

[Referred to in paragraph 1 under ‘Report on Other Legal and RegulatoryRequirements Rs.in the Independent Auditors Rs.Report of even date to the members of SPMLInfra Limited on the standalone Ind AS financial statements for the year ended 31st March2020]

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) According to the information and explanations given to us the Company has aregular program of physical verification of its fixed assets under which the fixed assetsare verified in a phased manner over a period of three years which in our opinion isreasonable having regard to the size of the Company and the nature of its assets. Inaccordance with this program certain fixed assets were physically verified after closureof the current financial year and no material discrepancies between the book records andthe physical inventory have been noticed on such verification

(c) The title deeds of all the immovable properties (which are included under the head‘Property Plant and Equipment') are held in the name of Company.

(ii) According to the information and explanations given to us and in our opinion themanagement has conducted physical verification of inventory at reasonable intervals duringthe year and no material discrepancies between physical inventory and book records werenoticed on such physical verification.

(iii) According to the information and explanations given to us the Company hasgranted unsecured loans to companies and other parties covered in the register maintainedunder section 189 of the Act; and with respect to the same:

a) in our opinion and according to the information & explanations given to us theterms and conditions of grant of certain loans are prima facie prejudicial to theCompany's interest on account of the fact that the loans have been granted at an interestrate which is lower than the cost of funds to the company;

b) the schedule of repayment of principal and payment of interest has been stipulatedbut the repayments or receipts in some cases towards interest are irregular;

c) there is no overdue for more than 90 days in respect of loans granted to suchparties

(iv) In our opinion Company has complied with the provisions of section 185 and 186 ofthe Act to the extent applicable in respect of loans investments guarantees andsecurity.

(v) In our opinion and according to the information & explanations given to us theCompany has not accepted any deposits within the meaning of sections 73 to 76 of the Act.or any other relevant provisions of the Act. and the rules framed thereunder. Accordinglythe provisions of clause 3(v) of the Order are not applicable.

(vi) In our opinion and according to the information & explanations given to usthe Company pursuant to the Rules made by the Central Government for the maintenance ofcost records under sub-section (1) of section 148 of the Act in respect of the Company'sproducts and services and are being made and maintained. However we have not made adetailed examination of the cost records with a view to determine whether they areaccurate or complete.

(vii) According to the books and records as produced before and examined by us and theinformation and explanations given to us :

(a) Undisputed statutory dues including provident fund employees Rs.state insuranceincome-tax sales-tax goods and services tax service tax value added tax cess andother material statutory dues as applicable have not been regularly deposited with theappropriate authorities and there have been significant delays in a large number of cases.Undisputed amounts payable in respect thereof which were outstanding at the year-end fora period of more than six months from the date they become payable are as follows:

Name of the statute Nature of the dues Amount ( Rs.in Lakhs) Period to which the amount relates Due date Date of payment
Professional Tax Professional Tax 5.95 June 2016 to August 2019 15th day of the subsequent month Not yet paid
Provident Funds and Miscellaneous Provisions Act 1952 Provident Fund Dues 31.08 April 2018 to August 2019 15th day of the subsequent month Not yet paid
Employee State Insurance1948 Employee State Insurance Dues 20.71 June 2016 to August 2019 15th day of the subsequent month Not yet paid
Income Tax Act 1961 Tax Deducted at Source 93.33 July 2019 to August 2019 7th day of the subsequent month Not yet paid
Chhattisgarh Value Added Tax Act 2003 Value Added Tax 5.96 April 2017 to June 2017 15th day of the subsequent month Not yet paid
Gujarat Value Added Tax Act 2003 Works Contract Tax 3.82 Apr 2017 to June 2017 15th day of the subsequent month Not yet paid
Uttar Pradesh Value Added Tax Act 2008 Works Contract Tax 140.97 Mar 2016 to June 2017 15th day of the subsequent month Not yet paid
Delhi Value Added Tax Act 2005 Works Contract Tax 11.94 Apr 2017 to June 2017 15th day of the subsequent month Not yet paid
Jharkhand Value Added Tax Act 2005 Works Contract Tax 4.19 Apr 2017 to June 2017 15th day of the subsequent month Not yet paid
Tripura Value Added Tax Act 2005 Works Contract Tax 1.22 Apr 2017 to June 2017 15th day of the subsequent month Not yet paid
Bihar Value Added Tax Act 2005 Works Contract Tax 155.11 Apr 2015 to August 2016 15th day of the subsequent month Not yet paid
Rajasthan Value Added Tax Act 2003 Works Contract Tax 2.09 Apr 2017 to June 2017 15th day of the subsequent month Not yet paid
West Bengal Value Added Tax Act 2003 Works Contract Tax 44.01 Apr 2015 to June 2017 15th day of the subsequent month Not yet paid
The Orissa Value Added Tax Act 2004 Works Contract Tax 1.76 Apr 2015 to June 2017 15th day of the subsequent month Not yet paid

(b) The dues of sales-tax service tax and value added tax that have not been depositedwith the appropriate authorities on account of any dispute are as follows:

Name of the statute Nature of the dues Amount (Rs. in Lakhs) Amount paid under Protest (Rs. in Lakhs) Period to which the amount relates Forum where dispute is pending
Central Sales Tax Act 1956 Non production of C and E forms 105.10 FY 2005-06 West Bengal Commercial Taxes Appellate and Revisional Board Kolkata
Central Sales Tax Act 1956 Claim exemption u/s 6(2) of Central Sales Tax Act1956 293.97 FY 2007-08 West Bengal Commercial Taxes Appellate and Revisional Board Kolkata
West Bengal Value Added Tax Act 2003 Non production of C and E forms 105.34 FY 2007-08 West Bengal Commercial Taxes Appellate and Revisional Board Kolkata
Central Sales Tax Act 1956 Claim exemption u/s 6(2)of Central Sales Tax Act1956 404.98 FY 2008-09 West Bengal Commercial Taxes Appellate and Revisional Board Kolkata
Central Sales Tax Act 1956 Non production of C and E forms 285.55 FY 2009-10 West Bengal Commercial Taxes Appellate and Revisional Board Kolkata
West Bengal Value Added Tax Act 2003 Denial of deduction u/s18 (2) of the WB VAT Act 335.63 FY 2009-10 West Bengal Commercial Taxes Appellate and Revisional Board Kolkata
West Bengal Value Added Tax Act 2003 Exemption under RGGVY scheme & Denial of deduction u/s18(2) of the WB VAT Act 95.74 FY 2008-09 West Bengal Commercial Taxes Appellate and Revisional Board Kolkata
West Bengal Value Added Tax Act 2003 Disallowance of input tax credit interest charged and demand of purchase and output tax 75.27 FY 2012-13 West Bengal Commercial Taxes Appellate and Revisional Board Kolkata
Bihar VAT Act 2005 Disallowance of labour component 43.13 - FY 2007-08 JCCT Appeals Patna
Bihar VAT Act 2005 Denied the exemption u/s 6(2) of the CST Act on the grounds of pre-determined sales and non-production of statutory forms 234.27 FY 2010-11 JCCT Appeals Patna
Central Sales Tax Act 1956 Our CST Sales u/s 6(2) IS accepted and taxed where Form C and E1 are due to be received and produced interest added 82.12 FY 2011-12 JCCT Appeals Patna
UP VAT Act 2008 Tax Liability on Exempted project RGGVY sales 44.13 8.82 FY 2007-08 Additional Commissioner Agra
Jharkhand VAT Act 2005 Tax Demand on receipts and suppression of turnover 193.41 - FY 2005-06 to 2010-11 JCCT (Appeals) Jamshedpur
Jharkhand VAT Act 2005 Tax Demand on receipts and suppression of turnover 38.24 - FY 2011-12 JCCT (Appeals) Jamshedpur
Central Sales Tax Act 1956 Tax Demand on receipts and suppression of turnover 61.53 - FY 2011-12 JCCT (Appeals) Jamshedpur
Delhi VAT Act 2004 Miscellaneous Demand 26.00 - FY 20122013 Commissioner DVAT Delhi
Rajasthan VAT Act 2003 Tax liability on interstate Sales 9.37 - FY 2009-10 Deputy Commissioner Appeals-II Jaipur
Rajasthan VAT Act 2003 Tax liability on interstate Sales 110.64 - FY 2011-12 Deputy Commissioner Appeals-II Jaipur
Bihar VAT Act 2005 Denied the exemptionu/s 6(2) of the CSTAct on the grounds ofpre-determined salesand non-production ofstatutory forms 163.49 20.00 FY 2013-14 JCCT Appeals Patna
Finance Act 1994 Service Tax 23.13 - FY 2005-06 to 2006-07 Commissioner Service Tax Kolkata

(viii) In our opinion and according to the information and explanations given to usthe Company has no loans or borrowings payable to government.

As at year ended 31st March 2020 The Company has defaulted in repayment of loans/borrowings to the following banks and financial institution as detailed below:

Name of Lender

Amount of default (Rs. in Lakhs)

Upto 90 days More than 90 days
Banks:
Canara Bank 9312.92 -
State Bank of India 960.51 1544.46
ICICI Bank Limited - 556.43
Bank of Baroda - 1391.84
Union Bank of India 113.77 995.71
Punjab National Bank 7193.88 2032.96
YES Bank Ltd. 66.26 -
Financial Institution:
IFCI Limited 139.00 -

The Company has not defaulted in repayment of dues to debenture holders.

(ix) The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) during the year. In our opinion the term loanswere applied for the purpose for which the loans were obtained.

(x) According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe period covered by our audit.

(xi) Managerial remuneration has been paid and provided by the Company in accordancewith the requisite approvals mandated by the provisions of section 197 of the Act readwith Schedule 5 to the Act.

(xii) In our opinion the Company is not a Nidhi Company. Accordingly provisions ofclause 3(xii) of the Order are not applicable.

(xiii) In our opinion all transaction with the related parties are in compliance withsections 177 and 188 of the Act where applicable and the requisite details have beendisclosed in the standalone Ind AS financial statements as required by the applicable IndAS.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures.

(xv) In our opinion the Company has not entered into any noncash transactions withdirectors or persons connected with them covered under section 192 of the Act.

(xvi) In our opinion the Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.

For Maheshwari & Associates
Chartered Accountants
FRN: 311008E
CA. Bijay Murmuria
Partner
Place: Kolkata Membership No. : 055788
Date: 18th August 2020 UDIN: 20055788AAAAAJ4889

Annexure-B to the independent Auditors Rs.Report

[Referred to in paragraph 2(h) under "Report on Other Legal and RegulatoryRequirements" section in our Independent Auditors Rs.Report of even date to themembers of SPML Infra Ltd. on the standalone financial statements for the year ended 31stMarch 2020]

Report on the Internal Financial Controls with reference to Financial Statements underClause (i) of sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls with reference to financial statementsof SPML Infra Limited ("the Company") as of 31st March 2020 inconjunction with our audit of the standalone financial statements of the Company for theyear ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's Board of Directors is responsible for establishing and maintaininginternal financial controls based on the internal control with reference to financialstatements criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India ("ICAI"). These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to Company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under the Act.

Auditors Rs.Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols with reference to financial statements based on our audit. We conducted our auditin accordance with the Guidance Note and the Standards on Auditing specified under section143(10) of the Act to the extent applicable to an audit of internal financial controlsboth issued by the ICAI. Those Standards and the Guidance Note require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls with reference to financial statements wereestablished and maintained and if such controls operated effectively in all materialrespects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls with reference to financial statements and their operatingeffectiveness. Our audit of internal financial controls with reference to financialstatements included obtaining an understanding of internal financial controls withreference to financial statements assessing the risk that a material weakness exists andtesting and evaluating the design and operating effectiveness of internal controls basedon the assessed risk. The procedures selected depend on the auditor's judgement includingthe assessment of the risks of material misstatement of the financial statements whetherdue to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls withreference to financial statements.

Meaning of Internal Financial Controls with reference to Financial Statements

A company's internal financial control with reference to financial statements 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 withreference to financial statements includes those policies and procedures that (1) pertainto the maintenance of records that in reasonable detail accurately and fairly reflectthe transactions 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 authorisations 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 with reference to FinancialStatements

Because of the inherent limitations of internal financial controls with reference tofinancial statements 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 withreference to financial statements to future periods are subject to the risk that theinternal financial controls with reference to financial statements may become inadequatebecause of changes in conditions or that the degree of compliance with the policies orprocedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem with reference to financial statements and such internal financial controls withreference to financial statements were operating effectively as at 31st March 2020 basedon the internal control with reference to financial statements criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote issued by the ICAI.

For Maheshwari & Associates
Chartered Accountants
FRN:311008E
CA. Bijay Murmuria
Partner
Place: Kolkata Membership No. : 055788
Date: 18th August 2020 UDIN: 20055788AAAAAJ4889

.