Ramky Infrastructure Limited — Audit Report / Information 2018

Aug 31, 2018

PROFILE DR. A.G. RAVINDRANATH REDDY

Dr. A.G. Ravindranath Reddy B.Com, M.Com, LLB, FCS holds a graduate degree from Sri Venkateswara University and Sri Krishnadevaraya University, and a doctorate for his thesis on “Role of Shareholders in Corporate Governance”.

He is a practising Company Secretary and a corporate consultant, and a Fellow Member of the Institute of Company Secretaries of India.

At the helm of affairs is Dr A.G. Ravindranath Reddy, has total experience of 30 years, presently Corporate Lawyer for past 9 years and was a company secretary in practice since 15 years and also has wide and rich experience for 6 years in various industries.

M V NAR AYANA R EDDY & C C HA R TE RED ACC OU N TA N TS

1.0 NAME & ADDRESS OF THE FIRM: M V NARAYANA REDDY &Co., CHARTERED ACCOUN T ANTS D. No.: 8-3- 9 41, Flat No. 5 04 Vijayasree Apartments, A m eerpet HYDERAB A D - 500 073 Phones: 040 - 2374 3975 / 040 - 2374 4 448 E-Mail: red d ymv_ca@ya h oo.com

• 1.1 DATE OF ESTABLISHMENT OF THE FIRM: A UGUST 19 8 8; accordin g ly, the Firm has an expe r ience of aro u nd 30 years in varied fie l ds, which ar e d etailed here u nder.

1.2 LIST OF PARTNERS AND EMPLOYEES WITH QUALIFICATIONS AND EXPERIENCE:

• 1.2.1 CA. M V NARAYANA REDDY, B.Com, F.C.A M V Narayana Reddy is a qualified C ommerce Graduate and Fellow Memb e r of Institut e of Chartere d Accountants of India. He is instrumen t al in setting up of the fi r m M V NA R AYANA R E DDY & Co . , Chartered Accountants and has aro u nd 30 Years experience as Charter e d Accounta n t. Under his stewardship, the firm has grown from s trength to st r ength and has established itself as one of the leadin g firms and Chartered Acco u ntants with C lientele base of Private & Public Limit e d Companie s , Governme n t related Aud i ts like Projects imple m ented by S E RP, APS W REIS, Fore s t Departme n t, Non-prof i t Organisation s like Educat i onal Institut i ons, Trusts a nd Public Sector Bank A u dits. He is i n strumental i n making the f irm as one stop point f o r all services like Finan c e, Accounti n g, Audit, In t ernal Contr o l Systems, Se c retarial and Legal solut i ons to the clients. He h as advised corporates o n Mergers & Acquisitions and has been successful in sealing t h e deals. He has immens e expertise i n Taxation o f Corporates i n cluding Inter n ational Taxa t ion.

• 1.2.2 CA. YSUBBA RAMI REDDYY, M Com, FCA Y Subba Ra m i Reddy is a Post Gradua t e in Comme r ce and aFell o w Member o f The Institute of Chartere d Accountants o f India with over11 years experience i n the fields of Corporate A u dits and Statutory Audit o f Branches of B anks, Stock and Receiv ab le Audits a p art from Ta x ation and ot h er related m a tters. He als o conducted G overnment r elated audi t s like SER P implemen t ed Projects, APSWRIE S and Fore s t Department’ s Vana Samra k shna Samith i s. He condu c ted statutory A udits of PS U s and Branc h es of PSUs.

• 1.2.3 CA. C BALA VENKATA SUBBA REDDY,B Com, ACA C Bala Venkata Subbba R eddy is anAs s ociate Mem b er of The In s titute of Ch ar tered Accou n tants of Indi a with over6 y e ars experien c e in the fiel d s of Corpor a te Audits an d Statutory A udit of Bran c hes of Bank s , Stock and Receivable Aud i ts apart from Taxation an d other related matters.

• 1.2.4 CA. M LAKSHMI BHAVANA, ACA M Lakshmi B havana is an A ssociate Me m ber of The I nstitute of C h artered Acco u ntants of In d ia with over 7 years experi e nce in the f ields of Co r porate Statu t ory Audits, I nternal Aud i ts and Statutory Audit o f Branches of B anks apart from Taxation a nd other rel a ted matters.

2.0 OTHER KEY PERSONNEL IN THE AUDIT TEAM TOGETHER

• 2.1 A Sathikond a , (Office Ma n ager) H e has over 4 2 years of e x perience in v arious facets of audits of a ll kinds, acc o unting and t a xation matters o f entities of a ll kinds.

• 2.2 T he firm has 3 0 personnel comprising A rticled Assist a nts /Audit S t aff. T he firm ha s 20 Article students of w hom 10 are semi qualified CAs. Th e above pers o nnel have a n e xperience ra n ging from 2 to 7 years in A ccounts, Auditing and ot h er facets of C orporate Aff a irs.

• 3.0 PROFESSIONAL EXPERIENCE OF THE FIRM:

3.1 INFRASTRUCTURAL ENVIRONMENT:

EDP Environment consisting of 25Systems connected with LAN with various Packages and has the Accounting and Project Monitoring Control Packages installed in various client offices.

3.2 STATUTORY / INTERNAL AUDIT:

• 3.2.1 The Firm is Statutory Auditors for more than 100 Private / Public Limited Companies, which include Pharma companies with over Rs.500 crores turnover. To name a few, Hetero Drugs Limited, Hetero Labs Limited, Covalent Laboratories Private Limited, Andhra Organics Limited and Virchow Petro Chemical Private Limited. Clientele of the Firm also include Listed Infrastructure company Ramky Infrastructure Limited with over Rs.1000 Crores Turnover.

• 3.2.2 The Firm has conducted Internal Audits for several Companies that include listed companies like Lokesh Machines Limited, Veljan Denison Hydraulics Limited, permeating every segment of the organisation. The scope of Audit include Systems aspects, propriety aspects, Revenue leakage aspects, Statutory Compliances and to report on deviations, areas for improvement and Action to be taken Report depending on the degree of risk perceived .

• 3.2.3 The Firm has conducted several Stock and Receivables Audits as a Panel Auditor on behalf of State Bank of India, State Bank of Hyderabad, IDBI, Union Bank of India and Canara Bank. The Firm has also conducted Concurrent Audit for Central Bank of India and Andhra Bank.

• 3.2.4 Conducted Statutory Audit of various Public Sector Banks’ branches.

• 3.2.5 Designed the Finance, Accounting , Costing, and Legal& Secretarial Manuals to various Clients.

• 3.2.6 Designed MIS Systems to the Management to monitor the day-to-day activities of the Companies.

• 3.2.7 Advised and Assisted the Companies in setting up Internal Control and Internal Audit Systems.

• 3.2.8 The Firm is instrumental in advising to Capitalisation Programmes of the companies in utilising the Funds raised by way of Term Loans and Public Issues.

• 3.3 Experience in Rural Development Projects / Non Governmental Organisations Audits (NGOs): The Firm has in depth experience in all facets pertaining to Non Governmental Organisations. The Firm is instrumental in advising in conceiving the structure of Non Governmental Organisations, related Accounting and Internal Audit Controls, Audit of the said Organisations. The Firm is also instrumental in piloting applications seeking tax relief from the Central Board of Direct Taxes / Government of India. The Firm is the Auditors for various Non Governmental Organisations (NGOs) ranging from Charitable Trusts, which run various Educational Institutions, Hospitals and other programmes. They include:

  • One of the Four Audit Firms since 2003 engaged for the Audit of Projects implemented by SERP to conduct the Internal Audit on Project Assistance funded by the World Bank and Government of Andhra Pradesh. Also a Special Audit is conducted for IKP.

  • One of the Four Audit Firms engaged for the Audit of Institutions of APSWREIS (Andhra Pradesh Social Welfare Residential Educational Institutions Society) to conduct the Internal Audit of its Institutions

  • One of the Two Audit Firms engaged for conducting Internal Audit of Vana Samrakshana Samithies (VSS) which were utilizing funds released by World Bank and Government of Andhra Pradesh under CFM Project for the financial periods from 2002-03 to 2006-07.

  • MPCR Memorial Trust

  • Vipassana Educational Trust

  • BDMA (Bulk Drug Manufacturers’ Association)

  • SAI SPURTHI TRUST

• 3.4 The Firm has done the Business Valuations for the purpose of Merger and Acquisitions of Companies.

3.5 PROJECT FINANCE / WORKING CAPITAL MANAGEMENT:

• 3.5.1 Firm has advised and assisted the Companies in preparation of detailed Project Reports and sourcing of Funds from Financial Institutions, Banks and Other Institutions for Project setups, Project Expansions and Diversifications.

• 3.5.2 Advised and assisted the Companies in preparation of Working Capital proposals and sourcing of Working Capital Facilities from Banks.

• 3.5.3 Advised and assisted the Companies in preparation of Information Memorandum for sourcing of Funds from Venture Capital Funds and NRIs.

• 3.5.4 Advised and assisted to preparation of detailed Project Monitoring Systems and Reports to Monitor Project Implementation.

• 3.5.5 Advised and assisted the Companies on Re-scheduling of Term Loans and Deferment of Interest in respect of Term Loans and Working Capital Facilities from Financial Institutions and Banks as part of Financial Restructuring.

• 3.5.6 Advised and assisted the Companies in preparation of Rehabilitation Package in case of Sickness. 3.5.7 Advised the Companies on Corporate Restructuring. 3.6 DIRECT AND INDIRECT TAX MATTERS:

• 3.6.1 Advised and Companies on Tax Planning, Tax Strategies from the standpoint of Income Tax and Double Taxation Avoidance Treaties.

• 3.6.2 Advised the Companies on Excise Implication in respect of Contract Manufacturing and Loan Licensee Manufacturing.

• 3.6.3 Handled Search and Seizure cases. 3.6.4 Advised the Companies on Works Contracts. 3.7 SECRETARIAL MATTERS :

• 3.7.1 Advised and assisted the Companies in Mergers & Acquisitions and Joint Ventures in India and Abroad.

• 3.7.2 Advised the Companies on rising of funds by Public Issues, Rights Issues and Other related matters.

• 3.7.3 Advised the Companies on various matters pertaining to Department of Company Affairs, Govt. of India, Company Law Board, Securities & Exchange Board of India, Stock Exchanges and Office of the Registrar of Companies.

• 3.7.4 Advised and assisted the Companies in keeping of various Statutory Registers and Regulatory Compliances.

• 3.7.5 Advised and assisted the Companies in conducting Board Meetings, General Meetings etc., 3.8 LEGAL MATTERS:

• 3.8.1 Advised and assisted the Companies on various legal matters pertaining to Companies Act, Contract Laws, Constitutional Law and Arbitration.

• 3.8.2 Advised and assisted the Companies in Title Investigation and Conduct of Searches. OTHER AREAS:

• 3.8.3 Familiarity with World Bank Publications on Evaluation of Projects, Industrial Feasibility Studies, SocioCost Benefit Analysis in respect of the Projects funded by them.