To the Members of
SRS REAL INFRASTRUCTURE LIMITED Report on the Financial Statements
We have audited the accompanying Standalone Financial Statements of SRS
REAL INFRASTRUCTURE LIMITED ("the Company") which comprises the Balance Sheet as
at March 31,2017, the Statement of Profit and Loss, Cash Flow Statement for the year then
ended, and a summary of significant accounting policies and other explanatory information.
Managements Responsibility for the Financial Statements
The Companys Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect to the
preparation and presentation of these Standalone Financial Statements that give a true and
fair view of the financial position, financial performance and cash flows of the Company
in accordance with the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of
adequate accounting records in accordance with the provisions of the Act for safeguarding
the assets of the Company and for preventing and detecting frauds and other
irregularities, selection and application of appropriate accounting policies, making
judgments and estimates that are reasonable and prudent; and design, implementation and
maintenance of adequate internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records, relevant to the
preparation and presentation of the Financial Statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these Standalone
Financial Statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in the audit report
under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether the Financial Statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the Financial Statements. The procedures selected
depend on the auditors judgment, including the assessment of the risks of material
misstatement of the Financial Statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal financial control relevant to the
Companys preparation of the Financial Statements that give a true and fair view in order
to design audit procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of the accounting policies used and the
reasonableness of the accounting estimates made by the Companys Directors, as well as
evaluating the overall presentation of the Financial Statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the Standalone Financial
Statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid Standalone Financial Statements give the
information required by the Act in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India, of the state of
affairs of the Company as at March 31,2017, and its Profit and its Cash Flow for the year
ended on that date.
Emphasis of matter
M/s SRS Healthcare & Research Centre Limited has availed loan of
60 Crores during the F.Y. 2015-2016 and 2.69 Crores during the F.Y. 2016-2017 (against
sanctioned limit of 115 Crores) from three banks on first Pari-Passu charge on all
current assets present & future and entire assets financed out of banks finance,
present & future of M/S SRS Healthcare & Research Centre Limited. Further the
company has provided collateral security of its property namely, SRS IT Tower located at
14/5 Mathura Road, Kh no 44/22/2, 44/23, & 24/1, Near Mewla Maharajpur Metro Station,
Faridabad, Haryana-121003 on first Pari-Passu basis to above three banks against the above
loan, part of which has been allotted to its customers on long term lease basis.
Our opinion is not qualified in respect of the above matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order, 2016
("the Order"), as amended, issued by the Central Government of India in terms of
sub-section (11) of section 143 of the Act, we give in the "Annexure A" a
statement on the 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 obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the purpose of our audit;
b. In our opinion proper books of account as required by law have been
kept by the Company 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 Statement dealt with by this report are in agreement with the books of account
d. In our opinion, the aforesaid Financial Statements comply with the
Accounting Standards specified under section 133 of the Act, read with Rule 7 of the
Companies (Accounts) Rules, 2014.
e. On the basis of written representations received from the directors
as on March 31,2017 taken on record by the Board of Directors, none of the directors is
disqualified as on March 31,2017 from being appointed as a director in terms of Section
164 (2) of the Act.
f. With respect to the adequacy of the internal financial controls over
financial reporting of the Company and the operating effectiveness of such controls, refer
to our separate Report in "Annexure B".
g. With respect to the other matters to be included in the Auditors
Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in
our opinion 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 its
financial position in its Financial Statements - Refer Note 32 of Notes to the Financial
Statements.
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any, on long-term
contracts. Company does not having derivative contracts.
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the Company.
iv. The Company has provided disclosures in its Financial Statements as
to holdings as well as dealings in Specified Bank Notes during the period from 8th
November, 2016 to 30th December, 2016. However, we are unable to obtain
sufficient and appropriate audit evidence to report on whether the disclosures are in
accordance with books of accounts and records maintained by the Company and as produced to
us by the Management-Refer Note 42 of Notes to the Financial Statements.
| For SVP & Associates |
| Chartered Accountants |
| Firm Reg. No. 003838N |
| (Pankaj Kumar) |
| Partner |
| Membership No. 091822 |
| Place: Faridabad |
| Date : June 05, 2017 |
"Annexure A" to the Independent Auditors Report
Referred to in paragraph 1 under the heading Report on Other Legal
& Regulatory Requirement of our report of even date to the Standalone Financial
Statements of the Company for the year ended March 31,2017, we report that:-
1) Fixed Assets [Clause 3(i)]:
(a) Proper Records: The Company has maintained proper records showing
full particulars including quantitative details and situation of fixed assets.
(b) Physical Verification: As explained to us the fixed assets have
been physically verified by the management during the year, which in our opinion is
reasonable having regard to the size of the Company and nature of its business.
No material discrepancies between the book records and the physical
fixed assets have been noticed.
(c) Title Deed: The title deeds of immovable properties are held in the
name of the com company, except the following case:-
| Particular |
Total No of
Cases |
Gross
Book Value |
Net Book
Value (Rs) |
| Land |
1 |
4,16,535.00 |
4,16,535.00 |
2) Inventory [Clause 3(ii)]:
Physical Verification: We have been explained by the management that
the inventory have been physically verified at reasonable interval during the year, As far
as we can ascertain and according to information and explanations given to us, the
discrepancies, whenever material notice on such physical verification of inventory as
compared to book records were properly dealt within the books of accounts..
3) Loan given by the company [Clause 3(iii)]:
The Company has not granted any loans, secured or unsecured to
companies, firms, limited liability partnerships or other parties covered in the register
maintained under section 189 of the Companies Act, 2013 (the Act). Accordingly, the
provisions of clause 3 (iii) (a) to (c) of the order are not applicable to the company.
4) Loan to directors and investment by company [Clause 3(iv)]:
According to the information and explanation given to us, the company
has complied with the provisions of section 185 and 186 of the Companies Act, 2013 with
respect to the loan, investments made.
5) Deposits [Clause 3(v)]:
In our opinion and according to the information and explanations given
to us, the Company has complied with the directives issued by the Reserve Bank of India
and the provisions of Sections 73 to 76 or any other provision of the Companies Act and
the rules framed there under with regard to deposits accepted from the public.
6) Cost Records [Clause 3(vi)]:
We have broadly reviewed the books of account maintained by the company
pursuant to the rules made by the Central Government for maintenance of cost record under
section 148(1) of the Act in respect to the companys products to which said rules are
made applicable and are of the opinion that prima facie, the prescribed records have been
made and maintained. We have however not made a detailed examination of the said records
with a view to determine whether they are accurate or complete.
7) Statutory Dues [Clause 3(vii)]:
(a) According to information and explanations given to us and on the
basis of our examination of the books of account, and records, the Company has been
generally regular in depositing undisputed statutory dues including Provident Fund,
Employees State Insurance, Income-Tax, Sales tax, Service Tax, Duty of Customs, Duty of
Excise, Value added Tax, Cess and any other statutory dues with the appropriate
authorities though there has been slight delays in a few cases. In case of TDS, Service
Tax, WCT, Labour Cess, Value Added T ax, company is not regular in depositing undisputed
statutory dues with appropriate authorities and there have been significant delays in a
large number of cases.
According to the information and explanations given to us, undisputed
amounts payable in respect of TDS of 63,80,056.00, Service Tax of 36,62,992.00, WCT of
2,92,305.00, Labour Cess of 25,68,813.00, Value Added Tax of 32,35,805.00 were in
arrears as at March 31,2017 for a period of more than six months from the date on when
they become payable.
(b) According to the information and explanation given to us, there are
no dues of income tax, sales tax, service tax, duty of customs, duty of excise, value
added tax outstanding on account of any dispute. However according to the information and
explanation given to us, the following dues of income Tax have not been deposited by the
Company on account of disputes:
(Rs In Lacs)
| Nature of dues |
Amount (in Rs) |
Period to
which the amount relates |
Amount
deposited under protest (in ) |
Forum where
dispute is pending |
| Income Tax |
107.79 |
A.Y.
2014-15 |
- |
CIT(A)
Gurgaon-3 |
8) Repayment of Loans [Clause 3(viii)]:
In our opinion and according to the information and explanations given
to us, the Company has not defaulted in the repayment of loan or borrowings to any banks
and financial institutions as at balance sheet date, except in the below mentioned cases:
-
In the case of Principal Payment:-
| Name of the Bank |
Amount of
Default as at the Balance Sheet date (Amount In Rs) |
Period of
Default (Days) |
Remarks,
if any |
| Canara Bank |
10,50,00,000/- |
364 |
Unpaid up
to the date of Singing of Balance Sheet |
| Canara Bank |
10,50,00,000/- |
273 |
Unpaid up
to the date of Singing of Balance Sheet |
| Canara Bank |
10,50,00,000/- |
181 |
Unpaid up
to the date of Singing of Balance Sheet |
| Canara Bank |
10,33,39,790/- |
89 |
Unpaid up
to the date of Singing of Balance Sheet |
| Indian Overseas Bank |
11,25,00,000/- |
364 |
Unpaid up
to the date of Singing of Balance Sheet |
| Indian Overseas Bank |
11,25,00,000/- |
273 |
Unpaid up
to the date of Singing of Balance Sheet |
| Indian Overseas Bank |
11,25,00,000/- |
181 |
Unpaid up
to the date of Singing of Balance Sheet |
| Indian Overseas Bank |
9,25,38,363/- |
89 |
Unpaid up
to the date of Singing of Balance Sheet |
| Central Bank of India |
33,04,512/- |
89 |
Unpaid up
to the date of Singing of Balance Sheet |
| Central Bank of India |
1,20,00,000/- |
273 |
Unpaid up to
the date of Singing of Balance Sheet |
| Central Bank of India |
1,20,00,000/- |
181 |
Unpaid up to
the date of Singing of Balance Sheet |
| Central Bank of India |
1,20,00,000/- |
89 |
Unpaid up to
the date of Singing of Balance Sheet |
| Central Bank of India |
1,20,00,000/- |
1 |
Unpaid up
to the date of Singing of Balance Sheet |
In the case of Interest Payment:-
| Name of the Bank |
Amount
of Default as at the Balance Sheet date (Amount In Rs) |
Period
of Default (Days) |
Remarks,
if any |
| Canara Bank |
1,73,35,761/- |
1-100 |
Unpaid up
to the date of Singing of Balance Sheet |
| Canara Bank |
1,65,21,813/- |
101-200 |
Unpaid up
to the date of Singing of Balance Sheet |
| Canara Bank |
2,06,44,547/- |
201-300 |
Unpaid up
to the date of Singing of Balance Sheet |
| Canara Bank |
90,29,812/- |
301-365 |
Out of
which 24,40,000/- has been paid up to the date of signing of Balance Sheet |
| Indian Overseas Bank |
2,01,72,544/- |
1-100 |
Unpaid up
to the date of Singing of Balance Sheet |
| Indian Overseas Bank |
2,88,76,836/- |
101-200 |
Unpaid up
to the date of Singing of Balance Sheet |
| Indian Overseas Bank |
51,49,818/- |
201-300 |
Unpaid up
to the date of Singing of Balance Sheet |
| Indian Overseas Bank |
1,23,57,323/- |
301-365 |
Out of
which 31,61,000/- has been paid up to the date of signing of Balance Sheet |
| Central Bank of India |
96,67,151/- |
101-200 |
Unpaid up
to the date of Singing of Balance Sheet |
| Central Bank of India |
31,85,959/- |
201-300 |
Unpaid up to
the date of Singing of Balance Sheet |
As per information and explanation given to us the company had not
taken any loan from the government. Further, the company had not issued any debenture.
9) Utilization of IPO and further public offer [Clause 3(ix)]:
Based upon the audit procedures performed and the information and
explanations given by the management, the company has not raised moneys by way of initial
public offer or further public offer including debt instruments during the year. The term
loans have been applied for the purpose for which they were raised.
10) Reporting of fraud [Clause 3(x)]:
Based upon the audit procedures performed and the information and
explanations given by the management, we report that no fraud by the Company or on the
company by its officers or employees has been noticed or reported during the year.
11) Approval of Managerial Remuneration [Clause 3(xi)]:
Based upon the audit procedures performed and the information and
explanations given by the management, the managerial remuneration has been paid or
provided in accordance with the requisite approvals mandated by the provisions of section
197 read with Schedule V to the Companies Act, 2013.
12) Nidhi company [Clause 3(xii)]:
In our opinion, the Company is not a Nidhi Company. Therefore, this
clause of the order is not applicable to the Company.
13) Related Party Transaction [Clause 3(xiii)]:
In our opinion, all transactions with the related parties are in
compliance with section 177 and 188 of Companies Act, 2013 and the details have been
disclosed in the Financial Statements as required by the applicable accounting standards.
14) Private Placements or Preferential Issues [Clause 3(xiv)]:
Based upon the audit procedures performed and the information and
explanations given by the management, the company has not made any preferential allotment
or private placement of shares or fully or partly convertible debentures during the year.
15) Non Cash Transactions [Clause 3(xv)]:
Based upon the audit procedures performed and the information and
explanations given by the management, the company has not entered into any non-cash
transactions with directors or persons connected with him. Accordingly, the paragraph of
clause 3 (xv) of the Order are not applicable.
16) Register under RBI Act, 1934 [Clause 3(xvi)]:
The Company is not required to be registered under section 45-IA of the
Reserve Bank of India Act, 1934.
| For SVP & Associates |
| Chartered Accountants |
| Firm Reg. No. 003838N |
| (Pankaj Kumar) |
| Partner |
| Membership No. 091822 |
| Place: Faridabad |
| Date : June 05, 2017 |
"Annexure B" to the Independent Auditors Report of even date
on the Standalone Financial Statements of SRS REAL INFRASTRUCTURE LIMITED the Internal
Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act,
2013 ("the Act")
We have audited the internal financial controls over financial
reporting of SRS REAL INFRASTRUCTURE LIMITED ("the Company") as of March 31,2017
in conjunction with our audit of the Standalone Financial Statements of the Company for
the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and
maintaining internal financial controls based on the internal control over financial
reporting criteria established by the Company considering the essential components of
internal control stated in the Guidance Note on Audit of Internal Financial Controls over
Financial Reporting issued by the Institute of Chartered Accountants of India. These
responsibilities include the design, implementation and maintenance of adequate internal
financial controls that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to companys policies, the safeguarding of
its assets, the prevention and detection of frauds and errors, the accuracy and
completeness of the accounting records, and the timely preparation of reliable financial
information, as required under the Companies Act, 2013.
Auditors Responsibility
Our responsibility is to express an opinion on the Companys internal
financial controls over financial reporting based on our audit. We conducted our audit in
accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial
Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI
and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the
extent applicable to an audit of internal financial controls, both applicable to an audit
of Internal Financial Controls and, both issued by the Institute of Chartered Accountants
of India. Those Standards and the Guidance Note require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether
adequate internal financial controls over financial reporting was established and
maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about
the adequacy of the internal financial controls system over financial reporting and their
operating effectiveness. Our audit of internal financial controls over financial reporting
included obtaining an understanding of internal financial controls over financial
reporting, assessing the risk that a material weakness exists, and testing and evaluating
the design and operating effectiveness of internal control based on the assessed risk. The
procedures selected depend on the auditors judgment, including the assessment of the
risks of material misstatement of the Financial Statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the Companys internal financial
controls system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a
process designed to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of Financial Statements for external purposes in accordance
with generally accepted accounting principles. A companys internal financial control over
financial reporting includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; (2) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of Financial
Statements in accordance with generally accepted accounting principles, and that receipts
and expenditures of the company are being made only in accordance with authorisations of
management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised acquisition, use, or disposition of the
companys assets that could have a material effect on the Financial Statements.
Inherent Limitations of Internal Financial Controls over Financial
Reporting
Because of the inherent limitations of internal financial controls over
financial reporting, including the possibility of collusion or improper management
override of controls, material misstatements due to error or fraud may occur and not be
detected. Also, projections of any evaluation of the internal financial controls over
financial reporting to future periods are subject to the risk that the internal financial
control over financial reporting may become inadequate because of changes in conditions,
or that the degree of compliance with the policies or procedures may deteriorate.
Qualified Opinion
According to the information and explanations given to us and based on
our audit, the following material weaknesses have been identified as at March 31,2017:
a) Company needs to strengthen the process with respect to vendor
selection and analysis of quotation in relation to purchases of inventory.
A Material Weakness is a deficiency, or a combination of
deficiencies, in internal financial control over financial reporting, such that there is a
reasonable possibility that a material misstatement of the companys annual or interim
financial statement will not be prevented or detected on a timely basis.
In our opinion, except for the possible effects of the material
weaknesses described above on the achievement of the objective of the control criteria,
the Company has maintained, in all material aspects, an adequate internal financial
controls system over financial reporting and such internal financial controls over
financial were operating effectively as at March 31, 2017, based on the internal control
over financial reporting criteria established by the Company considering the essential
components of internal control stated in the Guidance Note on Audit of Internal Financial
Controls Over Financial Reporting issued by the Institute of Chartered Accountants of
India.
We have considered the material weaknesses identified and reported
above in determining the nature, timing, and extent of audit tests applied in our audit of
the March 31, 2017 Standalone Financial Statements of the company, and these material
weaknesses does not affect our opinion on the Standalone Financial Statements of the
company.
| For SVP & Associates |
| Chartered Accountants |
| Firm Reg. No. 003838N |
| (Pankaj Kumar) |
| Partner |
| Membership No. 091822 |
| Place: Faridabad |
| Date : June 05, 2017 |
+91-9892691696
