RPP Infra Projects Ltd Auditor Reports

TO THE MEMBERS OF R.P.P. INFRA PROJECTS LIMITED

Report on the Audit of the Standalone Financial Statements

Opinion

I have audited the accompanying standalone financial statements of R.P.P INFRA PROJECTS LIMITED ("the Company"), which comprise the Balance sheet as at 31st March 2024, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Statement of Cash Flows for the year ended on that date, and a summary of significant accounting policies and other explanatory information, which includes two branches and thirteen joint ventures fully controlled by the Company.

In my opinion and to the best of my information and according to the explanations given to me, the aforesaid standalone financial statements 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 Indian Accounting Standards prescribed under section 133 of the Act ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2024, the profit and total comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

I conducted my audit of the Standalone Financial Statements in accordance with the Standards on Auditing ("SA"s) specified under section 143(10) of the Act. My responsibilities under those Standards are further described in the Auditors responsibilities for the Audit of the Standalone Financial Statements section of my report.

I am 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 my audit of the Standalone Financial Statements under the provisions of the Act and the Rules made there under, and I have fulfilled my other ethical responsibilities in accordance with these requirements and the ICAIs Code of Ethics. I believe that the audit evidence obtained by me is sufficient and appropriate to provide a basis for my opinion on the Standalone Financial statements.

Key Audit Matters

Key audit matters are those matters that, in my professional judgment, were of most significance in my audit of the Standalone Financial Statements of the current period. These matters were addressed in the context of my audit of the Standalone Financial Statements as a whole, and in forming my opinion thereon, and I do not provide a separate opinion on these matters.

I have determined the matters described below to be the key audit matters to be communicated in my report.

Key Audit Matter	Auditors Response
1. Revenue recognition in accordance with Ind AS 115 "Revenue from Contracts with Customers"	My audit procedures on revenue recognized from fixed price development contracts include
The Company inter alia engages in Fixed-price development contracts, where, revenue is recognized using the percentage of completion computed as per the input method based on managements estimate of contract costs. (Refer Notes No. 27 to the Standalone Financial Statements)	??Understanding of the systems, processes and controls implemented by management for recording and calculating revenue and work-in-progress/Contract Assets.
	??On selec ted samples of contracts, I tested that the recognized is in accordance with the accounting standard by –
I identified revenue recognition of fixed price development contracts as a KAM considering –
	??E valuating the performance obligation;
	??T esting managements calculation of the estimation of contract cost and onerous obligation, if any. I :
• T here is an inherent risk around the accuracy of revenues given, the customised and flexible nature of these contracts in terms of tenure of the projects.
	??Obser ved that the estimates of cost to were reviewed and approved by appropriate levels of management;
• Application of revenue recognition accounting standard is complex and involves a number of key judgments and estimates including estimating the future cost- to-completion of these contracts, which is used to determine the percentage of completion of the relevant performance obligation;
	??P erformed a retrospective review of costs incurred with estimated costs to identify significant variations and verify whether those variations have been considered in estimating the remaining costs to complete the contract; and
? ?These contracts may involve onerous obligations on the ?Company that require critical estimates to be made by management; and	?? Assessed the appropriateness of work in progress (contract assets) in balance sheet by evaluating the underlying documentation to identify possible delays in achieving milestones which may require change in estimated costs to complete the remaining performance obligations.
? ?At ?year-end a significant amount of work in progress (Contract assets and liabilities) related to these contracts is recognised in the balance sheet.

 

2 Measurement of contract assets in respect of overdue milestones and receivables in respect of overdue invoices	The procedures performed included the following:
The Company, in its contract with customers, promises to transfer distinct services to its customers, which may be rendered in the form of engineering, procurement, and construction (EPC) services through design-build contracts, and other forms of construction contracts. The recognition of revenue is based on contractual terms, which could be based on agreed unit price or lump-sum revenue arrangements. At each reporting date, revenue is accrued for costs incurred against work performed that may not have been invoiced.	? ?obtained ?an understanding of the Companys processes in collating the evidence supporting execution of work for each disaggregated type of revenue;
	? ?obtained ?an understanding of the Companys processes in assessing the recoverability of amounts overdue and process over estimating the expected credit loss allowance;
	? ?tested the design and operating effectiveness of the key controls ?over the completeness and accuracy of the key inputs and assumptions into the provisioning model;
Identifying whether the Companys performance has resulted in a service that would be billable and collectable where the works carried out have not been acknowledged by customers as of the reporting date, involves a significant amount of judgment. Assessing the recoverability of contract assets related to overdue milestones and amounts overdue against invoices raised which have remained unsettled for a significantly long period after the end of the contractual credit period also involves a significant amount of judgment.	? ?evaluated ?controls over authorisation and calculation of provisioning model;
	? ?evaluated ?the delivery and collection history of customers against whose contracts un-invoiced revenue is recognised;
	? ?verified for the sample selected, receipts post balance sheet date ?upto the approval of the financial statements by the Board of Directors of the Parent Company;
	? ?performed ?an overall assessment of the expected credit loss provision to determine if they were reasonable considering the Companys portfolio, risk profile, credit risk management practices and the macroeconomic environment; and
Refer to Note No. 2.14(i)and Note No.27 of the standalone financial statements
	? ?tested ?the appropriateness of the disclosures in the financial statements to ensure compliance with Ind AS 115

 

3 Claims and exposures relating to taxation and litigation	My Audit procedures included the following;
The Group is subject to a large number of tax and legal disputes, which have been disclosed / provided for in the financial statements based on the facts and circumstances of each case.	? ?Gained an understanding of the process of identification of claims, ?litigations and contingent liabilities and identified key controls in the process.
	? ?For selected controls I have performed tests of controls.
Taxation and litigation exposures have been identified as a key audit matter due to the complexities involved in these matters, timescales involved for resolution and the potential financial impact of these on the financial statements. Further, significant management judgement is involved in assessing the exposure of each case and thus a risk that such cases may not be adequately provided for or disclosed.
	? ?Obtained the summary of Groups legal and tax cases and critically ?assessed managements position through discussions with the Legal Counsel, on both the probability of success in significant cases, and the magnitude of any potential loss.
	? ?Examined external legal opinions (where considered necessary) ?and other evidence to corroborate managements assessment of the risk profile in respect of legal claims.
(Refer Note No. 40, Note no. 12.1 of the consolidated financial statements)	? ?Assessed ?the relevant disclosures made within the financial statements to address whether they reflect the facts and circumstances of the respective tax and legal exposures and the requirements of relevant accounting standards.
	? ?Assessed the competence and objectivity of the Groups experts, ?to satisfy ourselves that these parties are suitable in their roles.

I have determined that there are no other Key Audit Matters to communicate in my 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 Management Discussion and Analysis, Boards Report including Annexures to Boards Report, Business Responsibility and Sustainability Report, Corporate Governance and Shareholders Information, , but does not include the Consolidated Financial Statements, Standalone Financial Statements and my auditors report thereon.

My opinion on the Standalone Financial Statements does not cover the other information and I do not express any form of assurance conclusion thereon.

In connection with my audit of the standalone financial statements, my 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 my knowledge obtained during the course of my audit or otherwise appears to be materially misstated.

If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Standalone Financial Statements

The Companys Management and Board of Directors are responsible for the matters stated in section 134(5) of the Companies Act, 2013 ("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, (changes in equity) and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Ind AS 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 Statement 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 is 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 the Board of Directors either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Companys Board of Directors is also responsible for overseeing the Companys financial reporting process.

Auditors Responsibilities for the Audit of the Standalone Financial Statements

My objective is 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 my 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, I exercise professional judgment and maintain professional scepticism throughout the audit. I 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 my 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 financial 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, I am also responsible for expressing my 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 the management and Board of Directors.

• 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 I conclude that a material uncertainty exists, I am required to draw attention in my auditors report to the related disclosures in the Standalone Financial Statements or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my audit report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• E valuate the overall presentation, structure and content of Standalone Financial Statements, including the disclosures, and whether the Standalone Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.

• M ateriality is the magnitude of misstatements in the Financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the Standalone Financial Statements may be influenced. I consider quantitative materiality and qualitative factors in (i) planning the scope of my audit work and in evaluating the results of my work; and (ii) to evaluate the effect of any identified misstatements in the Standalone Financial Statements I 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 I identify during my audit.

I also provide those charged with governance with a statement that I 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 my independence, and where applicable, related safeguards.

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

Other Matter

I did not audit the financial statements of Two branches and thirteen jointly ventures fully controlled by the company, included in the standalone financial results of the Company, whose results reflect total assets of Rs. 175.85 Crore as at 31st March, 2024 and total revenues of Rs. 557.62 Crore and Rs.8.86 Crore, net profit/(Loss) after tax and total comprehensive income of Rs. 13.72 Crore for the year ended March 31st 2024, respectively and net cash flows amounting to Rs.1.66 Crore for the year then ended. These branch financial statements have been audited by other Auditors whose reports and these JVs financial statements have been audited by other Auditors whose reports have been furnished to me by the Management and my opinion on the standalone financial results, in so far as it relates to the amounts and disclosures included in respect of these entities, is based solely on the report of such auditors and the procedures performed by me are as stated in paragraph above.

My opinion is not modified in respect of this matter.

Report on Other Legal and Regulatory Requirements

1. A s required by the Companies (Auditors Report) Order, 2016 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Companies Act, 2013, I give in the Annexure -B a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

2. ( AA) s required by Section 143(3) of the Act, I report that: (a) I have sought and obtained all the information and explanations which to the best of my knowledge and belief were necessary for the purposes of my audit.

(b) In my opinion, proper books of account as required by law have been kept by the Company so far as it appears from my examination of those books.

( The Standalonec) 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 accounts.

( In myd)opinion, the aforesaid Standalone Financial Statements comply with the IND AS specified under section 133 of the Act

( On the basis of the written representations received e) from the directors as on 31st March, 2024 taken on record by the Board of Directors, none of the directors are disqualified as on 31st March, 2024 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 my separate Report in "Annexure A". My report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companys Internal Financial Controls with reference to Standalone Financial Statements.

(g) With respect to the other matters to be included in the Auditors Report in accordance with the requirement of Sec 197(10) of the Act, as amended, in my opinion and the best of my information and according to the explanations given to me, the remuneration paid by the Company to its Directors during the year is in accordance with the provisions of Section 197 of the Act.

(B) W ith respect to the other matters to be included the Auditors Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, in my opinion and to the best of my information and according to the explanations given to me: i. The Company has disclosed the impact of pending litigations on its financial position in its Standalone Financial Statements – Refer Note No.40 to the Standalone Financial Statements. ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses. iii. There has been no delay in transferring the amount of unclaimed dividend to the Investor Education and Protection Fund by the Company – Refer Note No.23 to the Standalone Financial Statements. 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 entity ("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 entity ("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 my notice that has caused me to believe that the representations under sub-clause (i) and (ii) of Rule 11(e), as provided under (a) and (b) above, contain any material misstatement. v. Based on my examination, which included test checks, the Company has used accounting software for maintaining its books of account for the financial year ended 31 March 2024 which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further, during the course of my audit, I did not come across any instance of audit trail feature being tampered with. As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014, is applicable from April 01 2023, reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules 2014 on preservation of audit trail as per the statutory requirements for record retention is not applicable for the financial year ended 31 March 2024.

Place : Erode

Date : 29 May 2024

ANNEXURE ‘A TO THE INDEPENDENT AUDITORS REPORT

(Referred to in Paragraph 1(f) under "Report on other Legal and Regulatory requirements section of my report to the Members of RPP INFRA PROJECTS LIMITED of even date)

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")

I have audited the internal financial controls over financial reporting of RPP Infra Projects Limited as of March 31, 2024 in conjunction with my audit of the standalone Ind AS 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

My responsibility is to express an opinion on the Companys internal financial controls over financial reporting based on my audit. I conducted my 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. Those Standards and the Guidance Note require that I 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. My audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. My 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 judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion on the Companys internal financial controls system over financial reporting, except relating to the branches in Srilanka and Bangladesh.

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 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 my opinion, the Company has, in all material respects, an adequate internal financial controls system with reference to standalone financial statements and such internal financial controls with reference to Standalone Financial Statements are operating effectively as at 31 March 2024, except relating to the branches in Srilanka and Bangladesh for which I have neither audited nor received an Independent Auditors report on the same, based on the internal control with reference to financial statements criteria established by the Company considering the essential components of internal control stated in the Guidance Note issued by the ICAI.

Place : Erode

Date : 29 May 2024

ANNEXURE ‘B TO THE INDEPENDENT AUDITORS REPORT ON THE STANDALONE FINANCIAL STATEMENTS OF RPP INFRA PROJECTS LIMITED

(Referred to in paragraph 1 under "Report on Other Legal and Regulatory requirements" section of our report of even date)

To the best of my information and according to the explanations provided to us by the Company and the books of account and records examined by me in the normal course of audit, I state that :

3 (i) In respect of the Companys Property Plant and Equipment, right-of-use assets and intangible assets : (a) (A) the company is generally maintaining proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment and relevant details of right-of -use assets.

(B) the company is maintaining proper records showing full particulars of intangible assets.

(b) The Company has a regular programme of physical verification of its property plant and equipment and right-of-use assets in a phased manner during the year. In my opinion, this physical verification is reasonable having regard to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification.

(c) The title deeds of all the immovable properties disclosed in the Standalone Financial Statements shown under the Property Plant and Equipment schedule are held in the name of the Company.

(d) The Company has not revalued its Property, Plant and Equipment or intangible assets or both during the year.

(e) No proceedings, that have been initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

3 (ii) (a) The inventory has been physically verified by the management during the year. In my opinion, the frequency of such verification is reasonable and procedures and coverage as followed by management were appropriate. No discrepancies were noticed on verification between the physical stocks and the book records that were more than 10% in the aggregate of each class of inventory.

(b) The Company has been sanctioned working capital limits in excess of five crores rupees from banks on the basis of security of current assets, and the quarterly returns or statements filed by the Company with such banks are in agreement with the books of accounts.

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 Act. Accordingly, the provisions of clause 3(iii)(a),(b),(c),(d),(e),(f ) of the Order are not applicable to the Company.

3 (iv) The Company has neither made any investments nor has it given any loans or provided any guarantee or security to which provisions of Section 185 of Companies Act 2013 apply. In my opinion and according to explanations given to me, the company has complied with the provisions of the sections 186 of the Act, with respect to the loans given, investment made, guarantees and security given.

3 (v) The Company has not accepted any deposits from the public and hence the directives issued by the Reserve Bank of India and the provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Companies (Acceptance of Deposit) Rules, 2015 with regard to the deposits accepted from the public are not applicable.

3 (vi) I have broadly reviewed the books of account maintained by the company pursuant to the Rules made by the Central Government for the maintenance of cost records u/s 148 of the Act, and is of the opinion that prima facie, the prescribed accounts and records have been made and maintained. I have, however, not made a detailed examination of the cost records with a view to determine whether they are accurate or complete.

3 (vii) In respect of statutory dues: a) In my opinion, the Company has generally been regular in depositing undisputed statutory dues, including Goods and Services tax, Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Service Tax, duty of Custom, duty of Excise, Value Added Tax, Cess and other material statutory dues applicable to it with the appropriate authorities. There were no undisputed amounts payable in respect of Goods and Service tax, Provident Fund, Employees State Insurance, Income Tax, Sales Tax, Service Tax, duty of Custom, duty of Excise, Value Added Tax, Cess and other material statutory dues in arrears as at March 31, 2024 for a period of more than six months from the date they became payable.

b) Details of dues of Income Tax , Service Tax and Good which have not been deposited as at March 31, 2024 on account of dispute are given below:

Name of Statute	Nature of the due	Amount in Rs.	Period to which the amount relates	Forum where the dispute is pending	Date of Demand Raised	Date of Response	Management Remarks
Income Tax Act	Income Tax	0.81 Crores	2009-10	The Deputy Commissioner of Income Tax, Central Circle II, Coimbatore	21/08/2019	-	We had approach the Settlement commission in the year 2017 and received the settlement order in the year 2019. The settlement order
Income Tax Act	Income Tax	1.79 Crores	2011-12	The Deputy Commissioner of Income Tax, Central Circle II, Coimbatore	23/06/2016	-	had imposed a demand of 1.41 crores against which we have remitted 1.01 crores in three instalments. The difference of 0.33 crores refers to TDS which was not updated in the
Income Tax Act	Income Tax	1.42 Crores	2012-13	The Deputy Commissioner of Income Tax, Central Circle II, Coimbatore	24/03/2016	-	portal at the time of settlement application but later on was updated which we have consider while making the settlement payment.
Income Tax Act	Income Tax	0.06 Crores	2013-14	Income Tax Department-CPC	21/08/2019
Income Tax Act	Income Tax	0.21 Crores	2014-15	Income Tax Department-CPC	21/08/2019
Income Tax Act	Income Tax	0.09 Crores	2015-16	Income Tax Department-CPC	30/01/2020
Income Tax Act	Income Tax	5.72 Crores	2015-16	Income Tax Department-CPC	30/01/2020
Income Tax Act	Income Tax	0.35 Crores	2016-17	Income Tax Department-CPC	15/03/2021		Portal not updated. Give effect to the appellate order.
Income Tax Act	Income Tax	7.01 Crores	2016-17	Income Tax Department-CPC	15/03/2021
Income Tax Act	Income Tax	1.90 Crores	2017-18	Income Tax Department-CPC	16/10/2019
Income Tax Act	Income Tax	5.97 Crores	2018-19	Income Tax Department-CPC	21/03/2021		Tax paid on installments, but it is not updated in the portal.
Service Tax Act	Service Tax	2.52 Crores	2004-09	Service Tax Tribunal	30/05/2024		Service Tax Tribunal had requested for reconsideration and a fresh decision by the original authority
Service Tax Act	Service Tax	0.62 Crores	2009-10	Service Tax Tribunal	30/05/2024		Service Tax Tribunal had requested for reconsideration and a fresh decision by the original authority
Service Tax Act	Service Tax	1.06 Crores	2010-11	Service Tax Tribunal	30/05/2024		Service Tax Tribunal had requested for reconsideration and a fresh decision by the original authority
Service Tax Act	Service Tax	4.56 Crores	2011-12	Service Tax Tribunal	30/05/2024		Service Tax Tribunal had requested for reconsideration and a fresh decision by the original authority

 

Name of Statute	Nature of the due	Amount in Rs.	Period to which the amount relates	Forum where the dispute is pending	Date of Demand Raised	Date of Response	Management Remarks
Service Tax Act	Service Tax	5.04 Crores	2012-13	Service Tax Tribunal	30/05/2024		Service Tax Tribunal had requested for reconsideration and a fresh decision by the original authority
Service Tax Act	Service Tax	1.77 Crores	2013-15	Service Tax Tribunal	30/05/2024		Service Tax Tribunal had requested for reconsideration and a fresh decision by the original authority
Income Tax Act Goods & Service Tax	TDS Tax	0.13 Crores 5.19 Crores	Various periods 2017-18	Income Tax Department-CPC Office of the commi. Taxes (Audit) 3.8 Karnataka. Mr.Kamalakar			Rectification in process by the Company Appeal filed on 31 01 2023 by paying predeposit fee
Goods & Service Tax	Tax	0.23 Crores	2019 – 20	Erode office			Ref. No. 222804221061817
Goods & Service Tax	Tax	2.94 Crores	2017-18	Office of DC Telangana			Further appeal filed with in the due date. Appeal No. ZD3601230293110/ ORDER DATED 19/01/2023
Goods & Service Tax	Tax	1.20 Crores	2021-22	DC Kerala Thrissur	04-01-2023		Order No. 32AERPB9014L1ZF/2021-22 Appeal to appellate Authority 26/04/2023

3 (viii) The Company has not surrendered or disclosed any transactions, previously unrecorded as income in the books of account, in the tax assessments under the Income tax Act, 1961 as income during the year.

3 (ix) (a) The Company has not defaulted in repayment of dues to its bank, financial institution, and to the Government for the year ended 31 Mar 2024.

(b) The Company has not been declared a wilful defaulter by any bank or any financial institution or Government or any Government authority.

(c) The company has utilized the money obtained by way of term loans during the year for the purposes for which they were obtained.

(d) On an overall examination of the Financial Statements of the Company, funds raised on short-term basis have, prima facie, not been used for long-term purposes by the company.

(e) On an overall examination of the Financial Statements of the Company, 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 and hence reporting under this clause is not applicable.

(f ) The company has not raised loans during the year on the pledge of securities held in its subsidiaries, joint ventures or associate companies.

3 (x) (a) In my opinion and according to the information and explanations given to me, the company has utilised the money raised by way of initial public offer/ further public offer (including debt instruments) for the purposes for which they were raised.

(b) The company has not made any preferential allotment of shares during the year, and hence reporting under this clause is not applicable.

3 (xi) (a) No fraud by the Company and no material fraud on the Company has been noticed or reported during the year.

(b) No report under sub-section (12) of Section 143 of the Act has been filed by the auditor in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government.

(c) As represented to me by the management, there are no whistle blower complaints received by the company during the year.

3 (xii) The Company is not a Nidhi Company and therefore clause 3(xii) of the Order is not applicable to the Company.

3 (xiii) In my opinion, all the Related Party Transactions entered into by the Company during the year are in compliance with the provisions Sec. 188 & 177 of the Act and the details thereof have been disclosed in the Standalone Financial Statements as required by the Accounting standards and the Act.

3 (xiv) (a) The company has an internal audit system commensurate with the size and nature of its business.

(b) I have considered the internal audit reports of the company issued till date, for the period under audit.

3 (xv) The company has not entered into any non-cash transactions with its directors or persons connected with its directors and hence provisions of section 192 of the Companies Act, 2013 are not applicable to the company.

3 (xvi) (a) In my opinion, the Company is not required to be registered u/s 45-IA of the Reserve Bank of India Act, 1934 and hence reporting under clause 3(xvi) (a), (b), (c ) is not applicable (b) The Company is not a Core Investment Company as defined in the regulations made by the Reserve Bank of India. According Clause 3(xvi) (d) is not applicable.

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

3 (xviii) There has been no resignation of the statutory auditors during the year .

3 (xix) 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, my knowledge of the Board of Directors and management plans and based on my examination of the evidence supporting the assumptions, nothing has come to my attention, which causes me 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. I, however, state that this is not an assurance as to the future viability of the company. I further state that my reporting is based on the facts up to the date of the audit report and I 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.

3 (xx) There is no unspent amount under sub-section (5) of Section 135 of the Act pursuant to any project. Accordingly, clauses 3(xx)(a) and 3(xx)(b) of the Order are not applicable

Place : Erode

Date : 29 May 2024