ramky infrastructure ltd Auditors report


To

The Members of Ramky Infrastructure Limited

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the accompanying standalone financial statements of Ramky Infrastructure Limited ("the Company"), which includes 9 joint operations comprising of the Standalone Balance Sheet as at 31 March, 2023, the Standalone Statement of Profit and Loss (including Other Comprehensive Income), the Standalone Statement of Changes in Equity and Standalone Cash Flow Statement for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information. In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of reports of other auditors on the separate financial statements and on the other financial information of the joint operations referred in Other matter paragraph below, the aforesaid standalone financial statements give the information required by the Companies Act, 2013, as amended (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 31 March 2023, its profit including other comprehensive income, its changes in equity and its cash flows for the year ended on that date.

Basis of Opinion

We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditors Responsibilities for the audit of the standalone financial statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIs Code of Ethics. We believe that the audit evidence we and other auditors, referred in other matter paragraph below, have obtained is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.

Key Audit Matters

Key Audit Matter

Auditors response

Foreseeable losses Evidence and historical information is considered to decide on the rationale and appropriateness of the estimates with respect to the costs to complete the project.
Management estimates the costs to complete the unexecuted portion of the contract and where it is probable that those costs exceed the revenue to be earned from such contracts, a provision for such probable loss is created. The relevant covenants of the contract are verified to assess the unearned revenue from the project. Considering the historical information and evidence with respect to probability of incurring losses, an appropriate provision is arrived.
Revenue of the Company is mainly from Construction Contracts. Our audit procedures included but were not limited to:
Revenue from these contracts are recognized over a period of time in accordance with the requirements of IND AS 115, Revenue from Contracts with Customers. Reading the accounting policy for revenue recognition of the Company.
Due to the nature of the contracts, revenue recognition involves survey of work performed, which involves significant judgments, separating financing component from revenue from contracts, wherever applicable, identification of contractual obligations and the Companys rights to receive payments for performance completed till date, changes in scope and consequential revised contract price and recognition of the liability for loss making contracts/onerous obligations. Revenue recognition involves aforesaid significant judgement and estimation. We therefore determined this to be a key audit matter. Obtaining an understanding of the Companys processes and controls for revenue recognition process, evaluating the key controls around such process.
Performing tests of details, on a sample basis and inspecting the underlying customer contracts and relevant supporting documents. Sample of revenue disaggregated by type and service offerings was tested with the performance obligation specified in the underlying contracts.
Considering the terms of the contracts to determine the transaction price including any variable consideration to verify the transaction price used to compute revenue and to test the basis of estimation of the variable consideration.

Key audit matters are those matters that, in our professional judgment, were of most significance 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 financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

Information Other than the Financial Statements and Auditors Report Thereon

The Companys Board of Directors is responsible for the other information. The other information comprises the information included in the Directors Report, but does not include the standalone financial statements and our auditors report thereon.

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

In connection with our audit of the standalone financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

The Boards Report including its annexures is expected to be made available to us after the date of this auditors report. We have nothing to report in this regard.

Managements Responsibility for the Standalone Financial Statements

The Companys management and Board of Directors are responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income, changes in equity 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. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, management and Board of Directors are responsible for assessing the Companys ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those Board of Directors are also responsible for overseeing the Companys financial reporting process.

Auditors Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the standalone financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone financial statements. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the standalone financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the 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 on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

Conclude on the appropriateness of managements use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Companys ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the standalone 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 auditors report. However, future events or conditions may cause the Company to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone financial statements of the current year and are therefore the key audit matters. We describe these matters in our auditors report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Other Matters

We did not audit the financial statements of 8 joint operations whose annual financial statements reflect total assets of Rs. 275.93 million as at March 31, 2023, revenues of Rs. 173.17 million and net cash outflows of Rs. 1.28 million for the year ended March 31, 2023, as considered in the standalone financial statements which have been audited by their respective independent auditors. The reports of such auditors on financial statements and other financial information of these joint operations have been furnished to us and our opinion on the standalone financial statements, in so far as it relates to the amounts and disclosures included in respect of these joint operations, is based solely on the report of such auditors and procedures performed by us.

The accompanying financial statements include the Companys share of total assets of Rs. nil million as at March 31, 2023 revenues of Rs. 170.75 million and net cash inflows of Rs. 9.41 million for the year ended March 31, 2023 in respect 1 joint operation, based on their annual financial information, which have not been audited by their auditors, and have been furnished to us by the Companys management. Our opinion on the standalone financial statements and our report, in so far as it relates to the aforesaid joint operations is based solely on such unaudited management certified financial statements. According to the information and explanations given to us by the management, such financial statements are not material to the Company.

Our opinion is not modified in respect of above matters.

Report on Other Legal and Regulatory Requirements

1 As required by the Companies (Auditors Report) Order, 2020 ("the Order"), 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 purposes 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 Standalone Balance Sheet, the Standalone Statement of Profit and Loss (including Other Comprehensive Income), the Standalone Statement of Changes in Equity and the Standalone Cash Flow Statement dealt with by this report are in agreement with the books of account; (d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act;

(e) On the basis of the written representations received from the directors as on 31 March, 2023 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2023 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 the requirements of section 197(16) of the Act, as amended, in our opinion and to the best of our information and according to the explanations given to us, the remuneration paid / provided by the Company to its directors during the year is in accordance with the provisions of section 197 of the Act; and (h) 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, as amended, 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 standalone financial statements - Refer Note 41 to the standalone 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 including derivative contracts; (iii) There are no dues required to be transferred to the Investor Education and Protection Fund by the Company; (iv) (a) the management has represented that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person or entity, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; (b) the management has represented, that, to the best of its knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; (c) based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub clause (i) and (ii) of Rule 11(e), as provided under iv (a) and iv (b) above, contain any material misstatement; (v) the Company has not declared any dividend during the year; and (vi) As proviso to rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable for the Company only with effect from 1 April 2023, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 is not applicable.

For M V NARAYANA REDDY & CO.,

Chartered Accountants

Firm Registration No. 002370 S

Sd/-

Y SUBBA RAMI REDDY

Partner

Membership No. 218248 UDIN: 23218248BGSCUZ8858 Place: Hyderabad Date : 30-May-2023

Annexure A to the Independent Auditors Report

The Annexure A referred to in Paragraph 1 under ‘Report on Other Legal and Regulatory Requirements in our Independent Auditors Report to the members of the Company for the year ended 31 March 2023, we report: i) (a) (A) According to the information and explanations given to us and based on the audit procedures performed by us, we are of the opinion that the Company has maintained proper records showing full particulars, including quantitative details and situation of property, plant, and equipment; and (B) The Company does not have any intangible assets. Hence this clause is not applicable to the Company. (b) As explained to us by the management, majority of the property, plant and equipment has been physically verified by the management in a phased periodical manner, which in our opinion is reasonable, having regard to the size of the Company and nature of its assets. We are informed that no material discrepancies were noticed on such physical verification.

(c) In our opinion and according to the information and explanations given to us and based on the examination of the conveyance deeds provided to us, we report that, the title deeds of all the immovable properties disclosed in the financial statements are held in the name of the Company.

In respect of immovable properties given as collateral for loans from banks and financial institutions, the respective title deeds were deposited with the said banks / financial institutions.

(d) The Company has not revalued its property, plant and equipment during the year and hence, additional reporting requirements of clause 3 (i) (d) of the Order are not applicable.

(e) In our opinion and according to the information and explanations given to us, there are no proceedings initiated or are pending against the Company as at March 31, 2023 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988, as amended and rules made thereunder. Accordingly, paragraph 3 (i) (e) of the Order is not applicable.

(ii) (a) The inventory has been physically verified during the year by the management at reasonable intervals. In our opinion, the coverage and procedure of such verification by the management is appropriate. There is no discrepancy of 10% or more in the aggregate for each class of inventory noticed during verification.

(b) According to the information and explanations given to us, the Company has been sanctioned working capital limit in excess of Rs. 5 crore, in aggregate, from banks and/ or financial institutions on the basis of security of current assets. The quarterly returns or statements filed by the Company with the banks or financial institutions are in agreement with the books of accounts and no material discrepancies have been observed. The Company is yet to submit the statement for the quarter ended March 31, 2023 with the banks. {Refer Note 49 (ii) to standalone financial statements} (iii) According to the information and explanations given to us and based on the audit procedures performed by us, that the Company has made investments in Companies, and granted unsecured loans, during the year: (a) According to the information and explanations given to us and based on the audit procedures performed by us, the Company has provided unsecured loans to subsidiaries and other entities during the year and has not provided any guarantee or security to any other entity.

( Rs. in million)

Particulars

Aggregate amount of loans given during the year Balance outstanding as at the Balance sheet date
Subsidiaries 389.84 3,716.79
Others 694.80 440.00

(b) According to the information and explanations given to us and based on the audit procedures performed by us, the investments made and the terms and conditions of the grant of loans, during the year are, prima facie, not prejudicial to the Companys interest.

(c) According to the information and explanations given to us and based on the audit procedures performed by us, the schedule of repayment of principal and payment of interest has been stipulated and the repayment of principal and receipts of interests are regular except in the case of interest on loan to others where an amount of Rs. 21.43 million is overdue.

(d) According to the information and explanations given to us and based on the audit procedures performed by us, there are no amounts of loans and advances in the nature of loans granted which are overdue for more than ninety days.

(e) According to the information and explanations given to us, and based on the audit procedures performed by us, no loan or advance in the nature of loan granted which has fallen due during the year, has been renewed or extended or fresh loans granted to settle the overdue of existing loans given to the same parties.

(f) The Company has not granted any loans or advances in the nature of loans either repayable on demand or without specifying any terms or period of repayment during the year.

(iv) According to the information and explanations given to us and on the basis of our examination of the records, the Company has complied with the provisions of section 185 and 186 of the Act in respect of the loans given and investments made, and the Company has not extended any guarantee or security.

Name of the Lender

Nature of Borrowing, including Debt securities

Amount not paid on due date ( Rs. in million) Ranging between Whether principal or interest No of days delay or unpaid Ranging between
IDBI Bank Cash credit 0.05 to 0.90 Interest 1 to 2 Days
IDBI Bank Working Capital Demand Loan 0.02 to 0.65 Interest 1 to 2 Days
Punjab National Bank Cash credit 2.93 to 2.94 Interest 1 to 24 Days
Punjab National Bank Working Capital Demand Loan 0.12 to 1.39 Interest 1 to 58 Days
Punjab National Bank Cash credit 247.6 Principal 24 Days
State Bank of India Cash credit 6.66 to 7.21 Interest 1 to 2 Days
State Bank of India Working Capital Demand Loan 10.2 to 10.6 Interest 1 Day

(v) According to the information and explanations given to us and based on the audit procedures performed by us, we are of the opinion that, the Company has not accepted any deposits during the year in terms of the provisions of section 73 to 76 or any other relevant provisions of the Act and the Rules framed thereunder.

(vi) We have broadly reviewed the cost records maintained by the Company pursuant to the rules made by the central government under section 148 (1) of the act and are of the opinion that prima facie the prescribed accounts and records have been made and maintained. We have, however, not made detailed examination of the records with a view to determining whether they are accurate or complete. (vii) (a) According to information and explanation given to us and records of the company examined by us, amounts deducted/accrued in the books of accounts in respect of undisputed statutory dues including provident fund, employees state insurance, income tax, service tax, value added tax, goods and service tax, cess and other statutory dues as applicable have been actually/regularly deposited with the appropriate authorities and there have been delays in number of cases during the year. As per information and explanations given to us, the Company did not have any dues on account of excise duty and customs duty. Details of undisputed dues in respect of value added tax in arrears for a period of more than six months from the date they became payable are provided in Appendix-I.

(b) According to the information and explanation given to us and records of the company examined by us, particulars of dues outstanding in respect of income tax, service tax, and value added tax which have not been deposited on account of any dispute are given in Appendix- II to this report.

(viii) According to the information and explanations given to us and based on the audit procedures performed by us, we are of the opinion that there are no transactions that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of 1961) and not recorded in the books of account.

(ix) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has defaulted in payment of principal and interest to banks, the details of which are as under:

(b) According to the information and explanations given to us and based on our audit procedures, we report that the Company is not a declared willful defaulter by any bank or financial institution or Government or any Government authority.

(c) The Company has not raised any term loans during the year. Accordingly, paragraph 3 (ix) (c) of the Order is not applicable. (d) According to the information and explanations given to us, and the procedures performed by us, and on an overall examination of the financial statements of the Company, we report that no funds raised on short-term basis have been used for long-term purposes by the Company.

(e) According to the information and explanations given to us and on an overall examination of the financial statements of the Company, we report that the Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries, associates, or joint ventures. Accordingly, clause 3(ix)(e) of the Order is not applicable.

(f) According to the information and explanations given to us and procedures performed by us, we report that the Company has not raised loans during the year on the pledge of securities held in its subsidiaries as defined under the Companies Act, 2013. Accordingly, clause 3 (ix) (f) of the Order is not applicable.

(x) (a) In our opinion and according to the information and explanations given to us, the Company has not raised any money by way of an initial public offer or further public offer (including debt instruments) during the year. Hence, reporting under this clause is not applicable.

(b) According to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or convertible debentures (fully, partially, or optionally convertible) during the year under review. Accordingly, the provisions of this clause of the Order are not applicable to the Company and hence not commented upon.

(xi) (a) Based upon the audit procedures performed and the information and explanations given to us, we report that no fraud by the Company or no material fraud on the Company has been noticed or reported during the year. (b) Based upon the audit procedures performed and the information and explanations given to us, we report that no report under sub-section (12) of section 143 of the Act has been filed by the auditors in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government.

(c) As represented to us by the management, there have been no whistleblower complaints received by the Company during the year.

(xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhicompany. Hence, the provisions of clause 3 (xii) (a), (b) and (c) of the Order are not applicable to the Company.

(xiii) In our opinion and according to the information and explanations provided to us, transactions with the related parties are in compliance with section 177 and 188 of the Act, to the extent applicable. The details of related party transactions as required by the applicable accounting standards have been disclosed in the notes to financial statements. (xiv) (a) In our opinion the Company has an adequate internal audit system commensurate with the size and the nature of its business.

(b) We have considered the internal audit reports issued to the Company till date, for the period under audit. (xv) In our opinion and according to the information and explanations given to us, and the procedures performed by us, during the year the Company has not entered any non-cash transactions with its directors or persons connected with its directors and hence provisions of section 192 of the Act, are not applicable.

(xvi) (a) In our opinion, the Company is not required to be registered under section 45-IA of the Reserve Bank of India, 1934. Hence, reporting under clause 3(xvi)(a), (b) and (c) of the Order is not applicable.

(d) In our opinion, there is no core investment company within the group (as defined in the (as defined in the core investment companies (Reserve Bank of India) Directions, 2016) and accordingly reporting under clause 3(xvi)(d) of the Order is not applicable.

(xvii)The Company has not incurred cash losses in the financial year and in the immediately preceding financial year.

(xviii)In our opinion and according to the information and explanations given to us, there has been no resignation of the statutory auditors during the year and accordingly this clause is not applicable.

(xix) According to the information and explanations given to us and on the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the financial statements, our knowledge of the Board of Directors and management plans, and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report that Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of the Company. We further state that our reporting is based on the facts up to the date of the audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one year from the balance sheet date, will get discharged by the Company as and when they fall due. (xx) (a) In our opinion and according to the information and explanations given to us, there is no unspent amount under sub-section (5) of Section 135 of the Act pursuant to any project other than ongoing projects. Accordingly, clause 3 (xx)(a) of the Order is not applicable.

(b) According to the information and explanations given to us, there was no unspent amount in respect of ongoing projects which is required to be transferred to a special account, within a period of thirty days from the end of the financial year in compliance with section 135(6) of the said Act. Accordingly, clause 3(xx)(b) of the Order is not applicable.

For M V NARAYANA REDDY & CO.,

Chartered Accountants

Firm Registration No. 002370 S

Sd/-

Y SUBBA RAMI REDDY

Partner

Membership No. 218248 UDIN: 23218248BGSCUZ8858 Place: Hyderabad Date : 30-May-2023

Appendix I as referred to in Para vii (a) of Annexure A to the Independent Auditors Report

Name of the statue

Nature of the due Amount ( Rs. in million) Period to which it pertain
Andhra Pradesh VAT Act, 2005 Tax 15.72 2017-18

A. Appendix II as referred to in Para vii (b) of Annexure A to the Independent Auditors Report

Name of the Statue

Nature of the due Tax Amount ( Rs. in million) Pre-security deposit ( Rs. in million) Period to which it pertain Forum where dispute pending

Andhra Pradesh General sales Tax Act, 1957

Tax 9.07 (4.53) 2002-03

The Deputy Commissioner, Panjagutta

Andhra Pradesh VAT Act, 2005

Tax and Penalty 56.90 (61.74) 2005-07

Sales Tax Appellete Tribunal, Hyderabad

Andhra Pradesh VAT Act, 2005

Tax 85.55 (12.87) 2007-09

Sales Tax Appellete Tribunal, Hyderabad

Andhra Pradesh VAT Act, 2005

Tax 63.08 - 2010-11

High Court of Telangana, Hyderabad

Madhya Pradesh Value Added Tax, 2002

Tax 35.62 (11.78) 2013-14

The Additional Commissoner Commercial taxes, Bhopal

Maharashtra Value Added Tax

Tax 44.43 (7.90) 2011-14

Maharastra Sales Tax Tribunal, Mumbai

West Bengal Value Added Tax, 2005

Tax 190.31 (1.36) 2005-13

The Additional Commissoner Commercial taxes, Kolkata

West Bengal Value Added Tax, 2005

Tax 7.91 - 2010-12

West Bengal Taxation Tribunal

West Bengal Value Added Tax, 2005

Tax 16.26 - 2013-14

Joint Commissioner Appeals west Bengal Commercial Tax Appellate & Revision Board

West Bengal Value Added Tax, 2005

Tax 3.04 - 2014-15

Sr.JCCT(Appeal)

West Bengal Value Added Tax, 2005

Tax 8.84 (0.95) 2015-16

Sr.JCCT(Appeal)

West Bengal Value Added Tax, 2005

Tax 1.05 (0.16) 2016-17

Joint Commissioner Appeals west Bengal Commercial Tax Appellate & Revision Board

Delhi Value Added Tax, 2004

Tax 0.39 - 2013-14

The Department of Trade and Taxes, NCT of Delhi

Telangana Tax On Entry Of Goods Into Local Areas Act, 2001

Tax 0.49 (0.17) 2011-12

High Court of Telangana, Hyderabad

Telangana Tax On Entry Of Goods Into Local Areas Act, 2001

Tax 4.12 (1.44) 2012-13

High Court of Telangana, Hyderabad

Telangana Tax On Entry Of Goods Into Local Areas Act, 2001

Tax 13.15 (4.60) 2013-14

High Court of Telangana, Hyderabad

Telangana Tax On Entry Of Goods Into Local Areas Act, 2001

Tax 0.43 (0.15) 2015-16

High Court of Telangana, Hyderabad

Telangana Tax On Entry Of Goods Into Local Areas Act,2001

Tax 0.15 (0.05) 2016-17

High Court of Telangana, Hyderabad

B. Appendix II as referred to in Para vii(b) of Annexure A to the Independent Auditors Report

Name of the Statue

Nature of the due Tax Amount ( Rs. in million) Pre-security deposit ( Rs. in million)

Period to which it pertain

Forum where dispute pending

Finance Act, 1994

Tax 30.50 (7.75)

2004-05 to 2006-07

Central Excise & Service Tax Appellate Tribunal (CESTAT), Bengaluru

Finance Act, 1994

Tax 7.98 (0.80)

2004-05 to 2006-07

Central Excise & Service Tax Appellate Tribunal (CESTAT), Kolkata

Finance Act, 1994

Tax 10.45 (4.00)

2007-08 to 2009-10

Central Excise & Service Tax Appellate Tribunal (CESTAT), Bengaluru

Finance Act, 1994

Tax 142.61 (2.00)

01-04-2007 to 30-09-2008

Central Excise & Service Tax Appellate Tribunal (CESTAT), Kolkata

Finance Act, 1994

Tax 17.90 -

2005-07

Central Excise & Service Tax Appellate Tribunal (CESTAT), Kolkata

Finance Act, 1994

Tax 17.33 (1.30)

01-07-2005 to 30-06-2010

Central Excise & Service Tax Appellate Tribunal (CESTAT), Hyderabad

Finance Act, 1994 Tax 42.86 -

01.04.2007 to

Commissioner of Customs, Central Excise &

31.03.2010

Service Tax (CCCE&S), Tamilnadu

Finance Act, 1994

Tax 1.92 -

01.04.2010 to 31.03.2011

Commissioner of Service tax Tamilnadu-35

Finance Act, 1994

Tax 138.72 -

01.04.2007 to 31.03.2012

Commissioner of Service tax Andhra Pradesh

Finance Act, 1994

Tax 6.82 -

01.04.2010 to 31.03.2011

Commissioner of Service tax Tamilnadu

Finance Act, 1994

Tax 21.75 (1.63)

01.10.2007 to 31.03.2012

Commissioner of Service tax Andhra Pradesh

Finance Act, 1994

Tax 27.07 (2.03)

2009-10 to 2011-12

Central Excise & Service Tax Appellate Tribunal (CESTAT), Hyderabad

Finance Act, 1994

Tax 26.09 -

2010-11 to 2012-13

Hyderabad II Service Tax Commissionerate

Finance Act, 1994

Tax 12.99 (0.49)

2010-11 to 2011-12

Central Excise & Service Tax Appellate Tribunal (CESTAT), Kolkata

Finance Act, 1994

Tax 27.56 -

2011-12 to 2013-14

Commissioner of Customs, Central Excise & Service Tax (CCCE&S),Hyderabad

Finance Act, 1994

Tax 1.99 -

2011-12 to 2013-14

Asst. Commissioner (Audit), Service Tax Cell, Visakhapatnam

Finance Act, 1994 Tax 5.24 -

2011-12 to

Additional Commissioner of Customs,

2013-14

Central Excise & Service Tax (CCCE&S), Tamilnadu

Finance Act, 1994

Tax 0.26 -

2004-05 to 2006-07

Commissioner of Customs, Central Excise & Service Tax (CCCE&S)

Finance Act, 1994

Tax 0.38 -

2007-08

Commissioner of Customs, Central Excise & Service Tax (CCCE&S) (Appeals), Chennai.

Finance Act, 1994

Tax 1.34 -

2010-11 to 2012-13

Commissioner of Customs, Central Excise & Service Tax (CCCE&S) (Appeals), Hyderabad.

Finance Act, 1994

Tax 9.85 -

2007-08

Central Excise & Service Tax Appellate Tribunal (CESTAT), Bengaluru

Finance Act, 1994

Tax 48.41 (3.63)

01.08.2012 to 31.03.2015

Central Excise & Service Tax Appellate Tribunal (CESTAT), Hyderabad

Name of the Statue

Nature of the due Tax Amount ( Rs. in million)

Pre-security deposit ( Rs. in million)

Period to which it pertain

Forum where dispute pending

Finance Act, 1994

Tax 9.38

-

2015-16

Additional Commissioner of Central Tax & Customs, Hyderabad

Finance Act, 1994

Tax 41.94

(10.00)

1-06-2007 to 31-05-2008

High Court of Andhra Pradesh

Finance Act, 1994

Tax 19.35

-

01.06.2008 to 31.03.2009

High Court of Andhra Pradesh

Finance Act, 1994 Tax 23.00

-

01.04.2009 to Commissioner of Customs, Central Excise &
31.03.2010 Service Tax (CCCE&S),Hyderabad
Finance Act, 1994 Tax 6.38

-

01.04.2010 to Commissioner of Customs, Central Excise &
31.03.2011 Service Tax (CCCE&S),Hyderabad
Finance Act, 1994 Tax 4.65

-

01.04.2011 to Commissioner of Customs, Central Excise &
31.03.2012 Service Tax (CCCE&S),Hyderabad
Finance Act, 1994 Tax 1.91

-

01.04.2009 to Commissioner of Customs, Central Excise &
31.03.2010 Service Tax (CCCE&S),Hyderabad
Finance Act, 1994 Tax 6.54

-

01.04.2010 to Commissioner of Customs, Central Excise &
31.03.2011 Service Tax (CCCE&S),Hyderabad
Finance Act, 1994 Tax 6.11

-

01.04.2011 to Commissioner of Customs, Central Excise &
31.03.2012 Service Tax (CCCE&S),Hyderabad
Finance Act, 1994 Tax 3.58

-

01.04.2016 to The Deputy Commissioner of Central Tax,
30.09.2016 Ameerpet GST Division, Hyderabad
Finance Act, 1994 Tax 1.56

-

01.10.2016 to The Deputy Commissioner of Central Tax,
30.06.2017 Ameerpet GST Division, Hyderabad
Finance Act, 1994 Tax 0.46

-

01.04.2014 to Central Excise & Service Tax Appellate
31.03.2017 Tribunal (CESTAT), Hyderabad
Finance Act, 1994 Tax 4.63

-

01.04.2017 to The Asst.Commissioner of Central
30.06.2017 Tax,Kolkata

C. Appendix II as referred to in Para vii (b) of Annexure A to the Independent Auditors Report

Name of the Statue

Nature of the due Tax Amount ( Rs. in million) Pre-security deposit ( Rs. in million) Period to which it pertain Forum where dispute pending

Income Tax Act, 1961

Tax and Interest 2.80 - AY 2018-19 CIT (Appeals), Hyderabad

Income Tax Act, 1961

Tax and Interest 131.79 - AY 2019-20 CIT (Appeals), Hyderabad

Annexure B" to the Independent Auditors Report of even date on the standalone financial statements of Ramky Infrastructure Limited

Report on the Internal Financial Controls under Clause (i) of Subsection 3 of section 143 of the Companies Act, 2013 ("the Act") We have audited the internal financial controls over financial reporting of Ramky Infrastructure Limited ("the Company") as of 31 March 2023, 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 ("the Guidance Note") 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 Act.

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 and the Standards on Auditing, issued by the Institute of Chartered Accountants of India and deemed to be prescribed under section 143(10) of the Act, 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 authorizations of management and directors of the Company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Companys assets that could have a material effect on the standalone 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.

Opinion

In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at 31 March, 2023, 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.

For M V NARAYANA REDDY & CO.,

Chartered Accountants

Firm Registration No. 002370 S

Sd/-

Y SUBBA RAMI REDDY

Partner

Membership No. 218248 UDIN: 23218248BGSCUZ8858 Place: Hyderabad Date: 30-May-2023