Rajasthan State Financial Corporation RAJASTHAN STATE ROAD

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RAJASTHAN STATE ROAD DEVELOPMENT & CONSTRUCITON CORPORATION LTD.
( A Government of Rajasthan Undertaking)
Regd. Office : Setu Bhawan, Opp. Jhalana Doongri, Jaipur-Agra Bye Pass Jaipur-302004
4
No.: D-4(36)/ 12282-95 Date : 25/11/09

1. His Excellency the Governor of Rajasthan, through
8 Dy. Secretary Finance (Exp.-IV).
Govt. of Rajasthan
2. Shri Pramod Jain (Bhaya), (Chairman and shareholder, RSRDC),
Hon‟ble Minister of State, Public Works Department,
2 Govt. of Rajasthan, Jaipur.
3. Dr. Dinesh Kumar Goyal, (Vice Chairman and shareholder, RSRDC ),
Principal Secretary to Govt., PWD, Rajasthan, Jaipur.
6
4. Shri D.B.Gupta, (Director and shareholder, RSRDC),
Principle Secretary to Govt., Planning Deptt., Rajasthan, Jaipur.
5. Shri Madhukar Gupta, (Director and shareholder, RSRDC),
0 Secretary to Govt.,Transport Deptt., Rajasthan, Jaipur.

6. Shri Abhay Kumar, (Director and shareholder, RSRDC)
Secretary to Govt., Finance (Exp.) Deptt.,
4
7. Shri P.K.Saxena, (Director and shareholder, RSRDC),
Secretary to Govt., PWD, Rajasthan, Jaipur.
8 8. Shri D.C. Katara, (Director and shareholder, RSRDC),
Chief Engineer cum Addl. Secy., PWD, Rajasthan, Jaipur.
9. Shri B. P. Chauhan, (Director, RSRDC),
2 Chief Engineer (Building), PWD, Rajasthan, Jaipur.
10. Shri Manohar Lal Mathur, Managing Director and shareholder, RSRDC, Jaipur.
6
Sir,
Please find enclosed herewith the notice ( Together with all annexure and comments
of CAG )of the NINTH (Adjourned) Annual General Meeting of the Shareholders/ Members
0 of the Rajasthan State Road Development & Construction Corporation Limited scheduled
to be held on Wednesday the 30th day of November 2009 at the registered office of the
Corporation at the address mentioned above, at 12:30 PM to transact the following
businesses.
4
1. To receive , consider and adopt the Audited Profit & Loss Account for the year
ended 31st March 2009 and the Balance Sheet as on that date, Auditors Report
thereon and the report of the Director to the Shareholders/ Members.
8

RSRDC Ltd.
2
2. To declare dividend. (Proposed Dividend : Your directors consider it appropriate to
propose for payment of dividend @ 11.10% on paid up share capital of the Corporation.
The paid up Share capital is Rs. 10.00 crores hence total dividend amount will be Rs.
6 1.11 crores.)

3. To approve the remuneration payable to Statutory Auditory M/S Gupta Rajiv &
Associates ,
0

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You are requested to kindly make it convenient to attend the meeting.
Thanking you,
Yours faithfully,
4

(R. K. SINGHAL)
8 Company Secretary

Copy to following for information and needful action please :-
2
1. General Manager, RSRDC, Jaipur
2. Chief Project Manager, RSRDC, Jaipur.
3. Chief Accounts Officer, RSRDC, Jaipur for information with the request to please
6 invite Statutory Auditors to attend the meeting. May please note that it is a
requirement of Companies Act 1956.
4. Sr. Audit Officer/CAW-I, Accountant General (Commercial & Receipt Audit), Rajasthan
in compliance to your office order No. CAW-I/D-2137 dated 13.02.07.
0

Company Secretary

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RAJASTHAN STATE ROAD DEVELOPMENT & CONSTRUCITON CORPORATION LTD.
( A Government of Rajasthan Undertaking)
Regd. Office : Setu Bhawan, Opp. Jhalana Doongri, Jaipur-Agra Bye Pass Jaipur-302004
4
No.: D-4(36)/ Date : 06/11/09

To All the Shareholders,
8 Directors & Others .(As per the list on next page)

NOTICE

2 Notice is hereby given that the NINTH (Adjourned) Annual General Meeting of the
Shareholders/ Members of the Rajasthan State Road Development & Construction
Corporation Limited will be held on Wednesday the 30th day of November 2009 at the
registered office of the Corporation at the address mentioned above, at 12:30 PM to
6 transact the following businesses.

TO CONSIDER IF THOUGHT FIT TO PASS WITH OR WITHOUT MODIFICATIONS THE FOLLOWING
RESOLUTIONS AS ORDINARY RESOLUTIONS.
0 As Ordinary Business :
4. To receive , consider and adopt the Audited Profit & Loss Account for the year
ended 31st March 2009 and the Balance Sheet as on that date, Auditors Report
thereon and the report of the Director to the Shareholders/ Members.
4
5. To declare dividend.

6. RESOLVED that the remuneration payable to Statutory Auditory M/S M/S
8 Gupta Rajiv & Associates , Jaipur for the financial year 2008-2009, be and is
hereby fixed at Rs. 50,000 per year and actual , reasonable, out of pocket
expenses (for audit out of town) in pursuance to section 224 (8) aa of
Companies Act, 1956.
2
RESOLVED FURTHER that the Board of Directors of the Corporation be and is
hereby authorised to fixed the remuneration payable to the Statutory Auditors
for financial year 2009-2010 and onwards pursuance to section 224(8) aa of
6 the Companies Act, 1956.

By order of the board
Place : Jaipur.
0 Dated: 06/11/09
( R. K. SINGHAL)
Company Secretary
NOTE:
4
1. A member entitled to attend and vote at the meeting is entitled to appoint a proxy to
attend and vote on a poll instead of himself and the proxy need not be a member of
the Corporation . Proxies in order to be effective must be received by the Corporation
8 not less than 48 hours before the meeting. Format of proxy is enclosed.

2. Balance Sheet, profit and loss account together with statutory auditors report
2 thereon and the report of Directors to the Shareholders are enclosed. Comments of
Comptroller & Auditor General of India are also enclosed. The composition of the
Audit Committee as required U/S 292 A (4) of the Companies Act 1956 is enclosed.

6 Submitted to all the respected Shareholders of the Corporation :-

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1. His Excellency the Governor of Rajasthan, through
Dy. Secretary Finance (Exp.-IV).
Govt. of Rajasthan
4 2. Shri Pramod Jain (Bhaya), (Chairman and shareholder, RSRDC),
Hon‟ble Minister of State, Public Works Department,
Govt. of Rajasthan, Jaipur.
8 3. Dr. Dinesh Kumar Goyal, (Vice Chairman and shareholder, RSRDC ),
Principal Secretary to Govt., PWD, Rajasthan, Jaipur.
4. Shri D.B.Gupta, (Director and shareholder, RSRDC),
Principle Secretary to Govt., Planning Deptt., Rajasthan, Jaipur.
2 5 Shri Madhukar Gupta, (Director and shareholder, RSRDC),
Secretary to Govt.,Transport Deptt., Rajasthan, Jaipur.
Transport Deptt., Rajasthan, Jaipur.
6 Shri Abhay Kumar, (Director and shareholder, RSRDC)
6 Secretary to Govt., Finance (Exp.) Deptt.,
7 Shri P.K.Saxena, (Director and shareholder, RSRDC),
Secretary to Govt., PWD, Rajasthan, Jaipur.
0
8 Shri D.C. Katara, (Director and shareholder, RSRDC),
Chief Engineer cum Addl. Secy., PWD, Rajasthan, Jaipur.
4 9 Shri B. P. Chauhan, (Director, RSRDC),
Chief Engineer (Building), PWD, Rajasthan, Jaipur.
8 10 Shri Manohar Lal Mathur, Managing Director and shareholder, RSRDC,
Jaipur.

Copy to :-
2
1. General Manager, RSRDC, Jaipur
2. Chief Project Manager, RSRDC, Jaipur
3. Chef Accounts Officer, RSRDC, Jaipur
6

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RAJASTHAN STATE ROAD DEVELOPMENT & CONSTRUCTION CORPORATION LTD., JAIPUR.

Date 07/09/09
4
Composition of Audit Committee of Directors

1. Dr. Dinesh Kumar Goyal, (Chairman of the Committee)
8 Principal Secy. to Govt.,
Public Works Department
And Vice Chairman, RSRDC

2 2. Sh. Abhay Kumar, (Member)
Secretary to Govt,
Finance (Exp.),

6 4. Sh. M. L. Mathur, (Member)
Managing Director,
RSRDC Ltd.

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FORM OF PROXY
(See Section 176(6) for the Companies Act, 1956)
RAJASTHAN STATE ROAD DEVELOPMENT & CONSTRUCTION CORPORATION LITD., JAIPUR.
4
I/ we ________________________________ of ________________________ in
the district of __________________ being member/ members of the above named
company hereby appoint ________________________________________________
8 ___________________________ of ____________________________ in the district of
____________________________________ as my/ our proxy to vote for me/ us on my/
our behalf at 9th ANNUAL GENERAL MEETING of the Company to which I/We belong
to be held on __________ the ____ Day of _______ at Registered Office at ______
2 AM/PM and at any adjournment thereof.

Signed this _______ day of Day of________________, 2009.
6

________________
0 Revenue Stamp
Of pasia 30

11. His Excellency the Governor of Rajasthan, through
8 Dy. Secretary Finance (Exp.-IV).
Govt. of Rajasthan
12. Shri Pramod Jain (Bhaya), (Chairman and shareholder, RSRDC),
Hon‟ble Minister of State, Public Works Department,
2 Govt. of Rajasthan, Jaipur.
13. Dr. Dinesh Kumar Goyal, (Vice Chairman and shareholder, RSRDC ),
Principal Secretary to Govt., PWD, Rajasthan, Jaipur.
6
14. Shri Niranjan Arya, (Director and shareholder, RSRDC),
Transport Commissioner & Secretary to Govt.,
Transport Deptt., Rajasthan, Jaipur.
0 15. Ms. Gurjot Kaur, (Director and shareholder, RSRDC),
Principle Secretary to Govt., Planning Deptt., Rajasthan, Jaipur.
16. Shri Abhay Kumar, (Director and shareholder, RSRDC)
Secretary to Govt., Finance (Exp.) Deptt.,
4
17. Shri P.K.Saxena, (Director and shareholder, RSRDC),
Secretary to Govt., PWD, Rajasthan, Jaipur.
8 18. Shri D.C. Katara, (Director and shareholder, RSRDC),
Chief Engineer cum Addl. Secy., PWD, Rajasthan, Jaipur.
19. Shri B. P. Chauhan, (Director, RSRDC),
2 Chief Engineer (Building), PWD, Rajasthan, Jaipur.
20. Shri Manohar Lal Mathur, Managing Director and shareholder, RSRDC, Jaipur.
6
Sir,
Please find enclosed herewith the notice of the NINTH Annual General Meeting of
the Shareholders/ Members of the Rajasthan State Road Development & Construction
0 Corporation Limited scheduled to be held on Wednesday the 30th day of September 2009
at the registered office of the Corporation at the address mentioned above, at 3:30 PM to
transact the following businesses.

4 7. To receive , consider and adopt the Audited Profit & Loss Account for the year
ended 31st March 2009 and the Balance Sheet as on that date, Auditors Report
thereon and the report of the Director to the Shareholders/ Members.

RSRDC Ltd.

2 8. To declare dividend. (Proposed Dividend : Your directors consider it appropriate to
propose for payment of dividend @ 11.10% on paid up share capital of the Corporation.
The paid up Share capital is Rs. 10.00 crores hence total dividend amount will be Rs.
1.11 crores.)
6
9. To approve the remuneration payable to Statutory Auditory M/S D. R. Mhnot &
Co. ,

0 You are requested to kindly make it convenient to attend the meeting.
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Thanking you,
Yours faithfully,

(R. K. SINGHAL)
Company Secretary
8

Copy to following for information and needful action please :-

2 1. General Manager, RSRDC, Jaipur
2. Chief Project Manager, RSRDC, Jaipur.
3. Chief Accounts Officer, RSRDC, Jaipur for information with the request to please
invite Statutory Auditors to attend the meeting. May please note that it is a
6 requirement of Companies Act 1956.
4. Sr. Audit Officer/CAW-I, Accountant General (Commercial & Receipt Audit), Rajasthan
in compliance to your office order No. CAW-I/D-2137 dated 13.02.07.

0
Company Secretary

To All the Shareholders,
8 Directors & Others .(As per the list on next page)

NOTICE

2 Notice is hereby given that the NINTH Annual General Meeting of the Shareholders/
Members of the Rajasthan State Road Development & Construction Corporation Limited
will be held on Wednesday the 30th day of September 2009 at the registered office of the
Corporation at the address mentioned above, at 3:30 PM to transact the following
6 businesses.

TO CONSIDER IF THOUGHT FIT TO PASS WITH OR WITHOUT MODIFICATIONS THE FOLLOWING
RESOLUTIONS AS ORDINARY RESOLUTIONS.
0 As Ordinary Business :
10. To receive , consider and adopt the Audited Profit & Loss Account for the year
ended 31st March 2009 and the Balance Sheet as on that date, Auditors Report
thereon and the report of the Director to the Shareholders/ Members.
4
11. To declare dividend.

12. RESOLVED that the remuneration payable to Statutory Auditory M/S D. R.
8 Mhnot & Co. , Jaipur for the financial year 2008-2009, be and is hereby fixed at
Rs. 50,000 per year and actual , reasonable, out of pocket expenses (for audit
out of town) in pursuance to section 224 (8) aa of Companies Act, 1956.

2 RESOLVED FURTHER that the Board of Directors of the Corporation be and is
hereby authorised to fixed the remuneration payable to the Statutory Auditors
for financial year 2009-2010 and onwards pursuance to section 224(8) aa of
the Companies Act, 1956.
6
By order of the board
Place : Jaipur.
Dated: 07/09/09
0 ( R. K. SINGHAL)
Company Secretary
NOTE:

4 3. A member entitled to attend and vote at the meeting is entitled to appoint a proxy to
attend and vote on a poll instead of himself and the proxy need not be a member of
the Corporation . Proxies in order to be effective must be received by the Corporation
not less than 48 hours before the meeting. Format of proxy is enclosed.
8

4. Balance Sheet, profit and loss account together with statutory auditors report
thereon and the report of Directors to the Shareholders are enclosed. Comments of
2 Comptroller & Auditor General of India are yet to be received hence, shall be provided
during the meeting. The composition of the Audit Committee as required U/S 292 A
(4) of the Companies Act 1956 is enclosed.

6 Submitted to all the respected Shareholders of the Corporation :-

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5. His Excellency the Governor of Rajasthan, through
Dy. Secretary Finance (Exp.-IV).
Govt. of Rajasthan
4 6. Shri Pramod Jain (Bhaya), (Chairman and shareholder, RSRDC),
Hon‟ble Minister of State, Public Works Department,
Govt. of Rajasthan, Jaipur.
8 7. Dr. Dinesh Kumar Goyal, (Vice Chairman and shareholder, RSRDC ),
Principal Secretary to Govt., PWD, Rajasthan, Jaipur.
8. Shri Niranjan Arya, (Director and shareholder, RSRDC),
2 Transport Commissioner & Secretary to Govt.,
Transport Deptt., Rajasthan, Jaipur.
9. Ms. Gurjot Kaur, (Director and shareholder, RSRDC),
Principle Secretary to Govt., Planning Deptt., Rajasthan, Jaipur.
6 10. Shri Abhay Kumar, (Director and shareholder, RSRDC)
Secretary to Govt., Finance (Exp.) Deptt.,
11. Shri P.K.Saxena, (Director and shareholder, RSRDC),
0 Secretary to Govt., PWD, Rajasthan, Jaipur.
12. Shri D.C. Katara, (Director and shareholder, RSRDC),
Chief Engineer cum Addl. Secy., PWD, Rajasthan, Jaipur.
4
13. Shri B. P. Chauhan, (Director, RSRDC),
Chief Engineer (Building), PWD, Rajasthan, Jaipur.
8
14. Shri Manohar Lal Mathur, Managing Director and shareholder, RSRDC,
Jaipur.

2 Copy to :-

4. General Manager, RSRDC, Jaipur
5. Chief Project Manager, RSRDC, Jaipur
6 6. Chef Accounts Officer, RSRDC, Jaipur

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RAJASTHAN STATE ROAD DEVELOPMENT & CONSTRUCTION CORPORATION LTD., JAIPUR.

Date 07/09/09
4
Composition of Audit Committee of Directors

1. Dr. Dinesh Kumar Goyal, (Chairman of the Committee)
8 Principal Secy. to Govt.,
Public Works Department
And Vice Chairman, RSRDC

2 2. Sh. Abhay Kumar, (Member)
Secretary to Govt,
Finance (Exp.),

6 4. Sh. M. L. Mathur, (Member)
Managing Director,
RSRDC Ltd.

Signed this _______ day of Day of________________, 2009.
6

________________
0 Revenue Stamp
Of pasia 30

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Directors Report to the
Shareholders/ Members for
The year ended 31st March,2009
4
Gentlemen,

The Directors of your Corporation have pleasure in presenting to you the NINTH ANNUAL
8 REPORT on the working of the Corporation for the year ended 31st March, 2009 together with the
Audited Statement of Account.

FINACIAL RESULTS
2 During the year under review, the Corporation had an operational surplus of Rs.1986.13 lacs before
providing depreciation and provision for income tax as compared to Rs.2108.40 lacs in the previous
year. This surplus has been further dealt as follows:

6 Operational surplus as above Rs. 19,86,13,220/-
Less:
Depreciation Rs. 11,83,07,158/-
Income Tax Provision Rs. 2,60,67,770/-
0 Deferred Tax Rs. 79,09,636/-

Operational surplus (Net) Rs. 4,63,28,656/-
Proposed Dividend (-) Rs. 1,11,00,000/-
4 Tax on distributed Profit (-) Rs. 18,86,445/-
Transfer to General Reserve Rs. 3,33,42,211/-

Proposed Dividend
8
Your directors consider it appropriate to propose for payment of dividend @ 11.10% on paid up
share capital of the Corporation. The paid up Share capital is Rs. 10.00 crores hence total dividend
amount will be Rs. 1.11 crores.
2
Material changes and commitments from the date of balance sheet to till today- NIL.

Directors Responsibility Statement: Subject to Qualification made in statutory auditors report 0
6
1. That in the preparation of the annual accounts, the applicable accounting standards had
been followed along with proper explanation relating to material departures.
2. That the directors had selected such accounting policies and applied them consistently
0 and made judgment and estimates that are reasonable and prudent so as to give a true and
fair view of the state of affairs of the company at the end of the financial year and of the
profit or loss of the company for their period.
3. That the directors had taken proper and sufficient care for the maintenance of adequate
4 accounting records in accordance the company and for preventing and detecting frauds
and other irregularities.
4. That the director had prepared the annual accounts on a going concern basis.

8 Capital Structure

During the year under review, there has been no change in the authorized capital of Rs. 20.00 crores
of the Corporation and paid-up capital of Rs. 10.00 crores.
2
Turnover

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The turnover of the Corporation during the current year is Rs. 28973.43 lacs (2008-2009) against
Rs.17010.06 lacs in the last year (2007-2008)

4 Building Works, Bridge & Road Works

During the year under review, a sum of Rs. 6,648.05 lacs has been spent on the construction of
various bridges and road works. A sum of Rs. 22,325.38 lacs has been spent on construction of
8 various building works during the year under review.

List of Major works procured during year 2008-09

A. BUILDING WORK
1 Construction of MCA building at Chandigarh
2 Construction of TAD Hostel Building Mahaua (Dausa)
3 Construction of Rajfed Godown Bharatpur
4 Construction of Boy Hostel & Roads in Engineering College , Bikaner
5 Construction of 2 Nos. Girls Hostel, SP.C & Compound Wall in Engineering
College , Bikaner
6 Construction of Poly. College, Churu Phase - V
7 Construction of Office Bldg. RSMM Ltd. Bikaner
8 Construction of LSQ at Police line Bikaner
9 Extension of Residential School Bagri
10 Women Barrack at Chainpura
11 Renovation of Ambedkar Bhawan at Jaipur
12 Construction of LSQ at RPA Shastri Nagar Jaipur
13 Construction of LSQ at Shiprapath Jaipur
14 Construction of USQ at Mansarovar Jaipur
15 Construction of quarters at Pratapnagar Jaipur
16 Construction of USQ at Banipark Jaipur
17 Construction of Women Barrack RAC Kota
18 Construction of Police Residential Qtrs. Kota
19 Construction of boundary wall Ummadganj
20 Construction of Sahkar Kishan Bhawan Baran
21 Construction of Hostel Block in SIHFW
22 Construction of Training Hall in SIHFW
23 Construction of Raj. Scout & Guide H.O., Jaipur
24 Construction of Barracks at Rural Police Line
25 Construction of Police Head Quarter at Lal Kothi, Jaipur.
26 Various construction work under Police Modernization Scheme 08-09
27 Construction of Shed & Gate at NLU Jodhpur
28 Construction of Lsq & USQ Police Qrts. For RPTC Jodhpur
29 Construction of Lsq & USQ Police Qrts. For PTS Jodhpur
30 Extension work of Residential Boys School of Kenpura

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31 Extension work of Residential Boys School of Mandore
32 Construction of oil house plot no.2 Saraswati Nagar Jodhpur
B. ROAD WORK
1 Construction of New Bikaner Bye Pass connecting NH-15 Bikaner - Jaisalmer
road to Bikaner Sriganganagar road km 0/0 to km 25/100
C. BRIDGE WORK
1 Construction of ROB at Tijara Phatak Alwar LC No.111

List of Major works procured during year 2009-10

A. BUILDING WORK

1 Extension of Institute of Hotel Management Building, Jaipur

2 Construction of Guest House & Residential Building at Rajasthan Ayurvedic
University Jodhpur

3 Construction works in Biological Park at Sajjangarh Udaipur
4 Construction works in Biological Park at Nahargarh Jaipur

5 Construction of Residential School (Boys) at Ramgarh Distt. Baran

6 Construction of Residential School (Girls) at Shahbad Distt. Baran
7 Misc. additional works at New kar Bhawan Jaipur

8 Construction of Dormitory on I Floor at Food Craft Institute Ajmer

9 Construction of Women Hostel at MDS University Ajmer
10 Construction of FF at Dining hall, Mess Block & connecting corridor between
Mechenical and EIC Department Bikaner

List of works Completed During 2008-09
1 Construction of RSPCB Office Building at Bhilwara
2 Construction of Engineering College Bikaner Phase-II
3 Construction of Ceramic Lab at Engg. College, Bikaner
4 Construction of Woman Barracks at RAC-IIIBattalion, Bikaner
5 Construction of CFC Cluster work at Dariba
6 Construction of Staff Qtrs. at Dariba
7 Construction of V.C Secretariat University of Bikaner
8 Construction of Guest House at University of Bikaner
9 Constructionof Exams. Block at University of Bikaner
10 Construction of Adm. Block at University of Bikaner

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11 Construction of compound wall & Entrance Plaza at University of Bikaner

12 Constructionof BT road in University of Bikaner
13 Construction of 198 ORS Package III Sriganganagar
14 Construction of 36 JCO's Package V Sriganganagar
15 Construction of 126 ORS &12 JCO"s at Sriganganagar Package II
16 Construction of 96 JCO's at Suratgarh Package II
17 Construction of NIMR, building Dwarka, New Delhi
18 Construction of Rajashthan Health Science University Pratap Nagar Sanganer
Jaipur

19 Construction of Office Building of Rajasthan Nurshing Council, Jaipur
20 Construction of college of horticulture and forestry Phase I at Jhalawar
21 Construction of Police Training School at Jhalawar.
22 Construction of Mini- Sectt. Jhalawar
23 Construction of Sahkari Bhawan at Jhalawar
24 Civil & Archtectectural work of Giral Thermal Power Project Barmer
25 Construction of Jail Qtrs. Kota
26 Construction of TAD Kishanganj Phase-II
27 Construction of Kota University Kota

28 Constrction of New Kar Bhawan at Jaipur
29 Construction of Bharat Viddhya Addhayan Sankul at MDS University Ajmer

30 Construction of Medical College at Jhalawar (Phase-I)
31 Construction of 60 men Barrack for Armed Forces at Sirohi

List of works Completed During 2009-10
1 Construction of Satelite Hospital at Gangauri Bazar Jaipur

2 Construction of Office Building for Ministry of Company Affairs, Jaipur

3 Extension work of Residential Boys School of Mandore, Jodhpur
4 Extension work of Residential Boys School of Kenpura, Pali
5 Extension of Residential School Bagri, Dausa

6 Construction of Transit Hostel at RPA Jaipur
7 Construction of ACB Building (PH-III) at Jaipur

CURRENT OUTLOOK
4
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The performance of your Corporation during the current year justify as optimistic lookout.
We are confident that we can look forward to maintain the growth an improve the
profitability of the Corporation in the current year and beyond.
4
RESEARCH & DEVELOPMENT

The Corporation is vigilant to use latest scientific advancement & construction technologies
8 on the projects, and so that the Corporation is encouraging its young engineers by deputing
them in various training/ refresher course not only in the State but outside also. The
Corporation is also maintaining field testing laboratories on all important projects, where
various tests for all types of construction material cement, bitumen, soils, aggregate,
2 cement concrete etc. are undertaken. The Corporation is also making use of the other
testing laboratories maintained by technical institutions such as poly-techniques,
Engineering Colleges as well as other test houses of repute.

6 TECHNOLOGY ABSORPTION

The Corporation is not using any foreign technology in construction activities. Tall
prestigious building structures, High Level Bridges and Railway Over Bridges are being
0 constructed with indigenous technology. Due attention is paid for energy conservations.

DISCLOSURE UNDER SECTION 217 (2A) OF THE COMPANIES ACT, 1956

4 As per provisions of Companies Act, 1956 read with Companies (Particulars of Employees)
Rules 1975, it is stated that since no employees has drawn remuneration more than the
prescribed limit during the year under review, hence report may be treated as nil.

8 PERSONAL & INDUSTRIAL RELATIONS

Happy and cordial relations continued through out the year between the management and
the employees of the Corporation. A sum of Rs. 38,53,023 has been spent on staff welfare
2 activities of the employees.

BOARD MEETING

6 During the year under review, the Corporation has been benefited by the valuable guidance
of Board of Directors, which has resulted in achieving the notable results.

BOARD OF DIRECTORS:-
0
The following directors were appointed by the GoR on the board of directors of this
Corporation during the year under review. Shri Pramod Jain , Dr. Dinesh Kumar Goyal, Ms.
Gurjot Kaur and Shri Niranjan Arya.
4
Shri Rajendra Rathore, Shri C. S. Rajan, Shri J. C. Mohanti, Shri Yaduvendra Mathur,
ShriRohit Modi, Shri P. P. Pareek and Shri Harimardhan Singh ceased to be directors
during the year under review.
8

We place on record our deep appreciation of the valuable advice and guidance the
Corporation received from the members of the Board during the year as Directors on the
2 Board of Corporation.

AUDITORS

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M/S Gupta Rajeev & Associates, Chartered Accountants were appointed by the CAG for
undertaking the audit for the year 2008-2009.

4 ACKNOWLEDGEMENT

Your Directors express their sincere appreciation of the loyal and commendable services
rendered by the officers and staff of the Corporation in achieving notable results during the
8 year under review and also confident that officers and staff will continue to strive hard to
improve the performance of the Corporation in the years to come. The Board of Directors
also take this opportunity to record their deep sense of gratitude to the Central Government
/ State Government / Company Banker / other autonomous bodies for their cooperation and
2 valuable assistance given to the Corporation during the year under review.

6 By order of the board

0 Place: Jaipur
Date: 07-09-09 Managing Director Director

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RAJASTHAN STATE ROAD DEVELOPMENT AND CONSTRUCTION CORPORATION
LIMITED , JAIPUR
SCHEDULE “ K “
4
NOTES TO THE BALANCE SHEET AND PROFIT & LOSS A/C FOR THE YEAR ENDED
31.03.2009

8
A: Statement on Significant Accounting Policies:

1. Basis of preparation of Financial Statements:
2
The financial statements are prepared on an accrual basis and under historical cost
convention and in accordance with the generally accepted accounting principles in
India, provision of the companies Act, 1956 and in compliance with mandatory
6 accounting standards issued by the Institute of Chartered Accountants of India
(ICAI) Except in respect of the following items, which are accounted for on cash
basis both in view of their uncertainty as also since their values not being material.
a. Escalation claims and liquidated damages.
0 b. Reimbursement of Interest on HBA to Corporation employees.
c. Other levies of Govt., if any,
d. Leave Encashment
e. Interest received in Income Tax / Sales Tax / VAT etc.,
4
2. Use of Estimates:
The Preparation of Financial statements requires estimates and assumptions to be
made that affect the reported amount of assets and liabilities on the date of financial
8 statements and the reported amount of revenues and expenses during the reporting
period. Difference between the actual results and estimated are recognized in the
period in which the results are known./materialized .

2
3. A: FIXED ASSETS:

a. The Gross block of fixed assets other than BOT Assets is stated at cost of acquisition
6 or construction, including any cost attributable to bringing the assets to their working
condition for their intended use.

b. BOT Assets( Assets constructed on land not owned by the Company) is stated at
0 cost of civil and electrical works, cost of use of machinery under erection, construction
and erection materials, pre-operative expenditure incidental / attributable to build
/construction, borrowing cost incurred prior to the date of commercial operation.

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3.B: Depreciation / Amortization

4 i) Depreciation on fixed assets is provided on WDV method in accordance with the
provisions of Sec., 205(2) (a) and as per the rates specified in Schedule XIV of
the Companies Act, 1956 on Single shift basis. Except

8 a. Depreciation on Survey and Lab equipments is provided @ 33.33% on the
Straight Line Method ( SLM).

b. Depreciation on Plant and Machinery, Shuttering materials, office Equipments
2 and Computer Equipments are provided @ 25.00 % on the written down value (
WDV).

c. Depreciation on Library books are provided @ 100.00 % from 01.04.1986 on
6 wards and Valued carried prior to that date are provided @ 10.00 % on the
written down value (WDV).

ii) Depreciation on the assets added/disposed off during the year is provided on pro-
0 rata basis with reference to the actual date of installation and being put to
use/disposal during the year. Date here means the day on which acquired and put
to use. Assets costing less than Rs. 5000/- each are depreciated 100% in the year
of purchase itself
4
iii) Where specified Government sanction for concession period is not available for BOT
assets are amortized on pro-rata basis over the period of the rights as given in the
project Report .
8
iv) Where specified Government sanction for concession period is available for BOT
assets are amortized on pro-rata basis over the period of the rights as given in the
Government Sanction.
2

4. IMPAIRMENTS OF ASSETS :
The carrying amounts of assets are reviewed at each balance sheet date to
6 determine whether there is any indication of impairment. If any indications exist, the
assets recoverable amount is estimated. An impairment loss is recognized wherever
the carrying amount of an asset exceeds its recoverable amount.

0
5. Employee Benefits

(A) Defined Contribution Plans :
4 Company contribution paid / payable for the year in defined contribution retirement
scheme are charged to Profit and loss account.

(B) Defined Benefit and other long term benefits Plans:
8 Company‟s liabilities towards Defined Benefit and other long term benefits Plans are
charged to Profit and loss account as applicable, based on actuaries‟ valuations, at
the balance sheet dare, made by the independent actuaries

2 (C) Short term Employee’s benefits:
Short term Employee‟s benefits are recognized in the year during which the service
have rendered.

6
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6. INVENTORIES:

4 a. Stores, Tools and Spares, Stock in Transit and Construction Materials are valued
and stated at lower of cost or net realizable value. The FIFO method of inventories
valuation is used to determine the cost.

8 b. Work in Progress on construction contracts of Tender Works are reflects value of
materials inputs and expenses incurred on such works.

c. Work in Progress on construction contracts of Cost Plus Works are reflects value of
2 materials inputs and expenses incurred on such works including Centage Charges
as per work order.

7. REVENUE RECOGNITION
6
A : ON COST PLUS WOKRS

a. Company has recognized Centage charges on the basis of total direct cost incurred
0 during the year . Further same is supported on the basis of circular No. F28(27)
PW/79/Rt.1 dated 04.10.1979 issued by the Government of Rajasthan .

B: ON TENDER WOKRS
4
a. Company has recognized profit and loss on tender work on the basis of worked
certified by the client or on the basis on quantum of work done but not billed up to
the end of the financial year. However company has not recognized profit and loss
8 on those works less than 25.00 % completed of its Tender Amount.

b. Company has booked 01.00 % Storages Charges on purchased value of Cement
and steel purchased for the particular works.
2
C: ON BOT WORKS
Actual Administration Exp. of units & proportionate share of Head Office Overheads have
been charged as centage charges on BOT projects instead of 9% centage charges loaded in
6 earlier years. The policy of charging centage have been changed due to comments of CAG &
Auditor on the accounts of RSRDC for the year 2005-06 in respect of BOT accounting. Due to
change in accounting policy the impact on the year upto 2005-06 is unascertainable.

0 D: ON TOLL COLLECTION

Toll Collected from users of facility in respect of B O T projects is accounted for when
the amount is due and recovery is certain and the income is recognized is net of direct
4 expenses incurred for maintenance of such facility.

E. Other incomes / receipts
a. Company has booked 01.00 % Storages Charges of purchased value of Cement
8 and steel for the particulars works.

b. Company has recognizes all other receipts /revenue on confirmation of receipt.

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8. Taxation:
a. Provision for Current Tax and Fringe Benefit Tax is made after taking into
4 consideration benefits admissible under the provisions of the Income Tax Act.
1961.if any

b. Deferred Tax resulting from “Timing Difference” between book and taxable profits
8 accounted for using the tax Rates and laws that have been enacted or
substantively enacted as on the balance sheet date.

c. The deferred tax asset is recognized and carried forward only to the extent that
2 there is a reasonable certainty that the assets will be realized in future. However
in respect of unabsorbed depreciation or carry forward loss, the deferred tax
assets is recognized and carried forwards only to the extent that there is a virtual
certainty that the assets will be realized in future.
6
9. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:
a. Provisions are recognized when the company has a present legal obligation, as a
result of past events, for which it is probable that an outflow of resources will be
0 required to settle the obligation and a reliable estimation can be made form the
amount of obligation.
b. Contingent Liabilities are not recognized but are disclosed in the notes to
accounts. disputed demands in respect of Income Tax and Sales /Vat TAX etc.
4 are disclosed as contingent liabilities . Payments in respect of such demands, if
any is shown as advance, till the final outcome of the matter.
c. Contingent assets are neither recognized not disclosed in the financial
statements.
8
10. EARNING PER SHARES:
Basic earning per share are calculated by dividing the net profit or loss for the period
attributable to equity shareholders by the weighted averages number of equity shares
2 outstanding during the period. The weighted average number of equity shares outstanding
during the period is adjusted for events of shares

For the purposes of calculating diluted earning per share, the net profit or losses for the
6 period attributable to equity share holders and weighted average number of equity shares
outstanding during the period are adjusted for the effects of all dilutive potential equity
shares.

0 11. PROIR PERIOD ITEMS
Prior period expenses / income are accounted under the Separate heads. Materials items,
if any, are disclosed separately by way note in notes to accounts

4
12. Material events occurring after the Balance Sheet date are taken into cognigence.

13. Miscellaneous Expenditure
8
Deferred Revenue expenses are amortized equally over a period of ten years commencing
with effect from the year of business activity.

2
.

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B: NOTES TO ACCOUNTS AND FORMING PART OF ACCOUNTS FOR THE YEAR
2008-09:

4 1. CONTIGENT LIABILITIES :

Provision/adjustment has not been made in the accounts in respect of:

8 a. Claims of Workmen/Contractors/Private Parties pending adjudication /appeal
Amount unascertainable. Award of Rs.275.55/- lacks has been passed against the
Corporation.

2 b. Guarantees given by Banks on behalf on Corporation Rs.13.94 crores.

c. Demand of Rs. 253.81 lacs is respect of contractors, CPF liability is pending before
EPF Tribunal. P.F. Commissioner had attached Bank accounts of the Corporation
6 against this demand. A sum of Rs.133.61 lacs was remitted to RPFC by the Bank
which has been classified under Current Assets; the mater is pending before
Hon‟ble High Court.

0 d. Claim of RIICO for Rs. 217.70 lacs against loan for RSGH, New Delhi.

e. Disputed Sales/ VAT Tax Liabilities for which the company has gone into appeal.

4 f. Disputed Income Tax Demand for which the company Appeals are pending before
Appellant Authority.

g. In addition of the above. Company is a party to various legal proceeding in the
8 normal course of business and does not expect the outcome of these proceedings
to have any adverse effect on its financial conditions, results of operations or cash
flows.

2 2. Company is maintaining Pension fund Accounts and contributing 12% of Pay & D.A.
. Deposited balance in fund accounts as at 31.03.2009 is Rs. 1075.79 lacks.
Whereas as per actuarial valuation made by LIC of India, the value of past service
benefits regarding Pension is Rs. 2687.00 lacks.
6
3. Company has taken a “ Cash Accumulation Policy “ from LIC of India and debited
profit and loss account for annual renewal premium of the policy every year . Deposit
balance as at the year end 31/03/2009 is Rs 247.42 Lacks. whereas as per actuarial
0 valuation made by the LIC of India under Gratuity scheme of employees is Rs.
351.36 lacks.

4. Company had made a cumulative provision for Rs.45.00 lacks up to 31.03.2000
4 towards leave encashment liability however no provision has been made in the
books after 31.03.2000 and actual liability in this regards is not ascertainable.

5. During the Financial Year 2004.05 Company has received a demand from Govt. of
8 Rajasthan to deposit interest earned on P.D. account pertaining to fund received for
Police Modernizations. According to the Government, Company has wrongly
transferred the said funds from Non-interest bearing P.D. account to Interest bearing
P.D. account. The Company has already credited such interest to its P & L account
2 in the year of accrual, No provision has been made against the same since the
company has not accepted the demand of government because no such directions
were received in past to deposit the amount in non-interest bearing P.D. account.

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4
6. Advance to suppliers included advance given to following parties which are pending
since long time due to some disputes and same will be adjusts as and when they will
finally settled.
8 Financial year Financial year
2008-09 2007-08
M/S Gammon India Ltd. 1023491/- 1023491/-
2 M/S S.B. Verma 845563/- 845563/-
M/S BSM Contractor 2975636/- 2975636/-

6 7. Balance in P.D. account as on 31.03.2009 Rs 9139.51 lacks includes a sum of
Rs.403.30 lacks freeze by the State Govt. (Previous year Rs 8264.34 lacks includes
a sum of Rs.403.30 lacks freeze by the State Govt.).

0 8. Company has made accounting in respect of institutionally financed works and
others on which recovery is by way of toll.

a) On completion of works the cost of construction plus cent age charges has
4 been debited to toll debtor account of the concerned project and shown under
current assets.

b) Seed money received from Govt. is credited to above Toll debtor account of
8 the concerned project however in respect of projects which are viable in the
opinion of the management the same is shown under the head Current
Liabilities where seed money has been recovered out of Toll.

2 c) Interest charged by financial institutions and guarantee commission is debited
to respective toll debtors account. Receipt by way of toll collected after netting
off direct expenditure incurred for collection of toll is credited to respective toll
debtors/creditors account.
6
d) No provision for interest on seed money received from the Government has
been made however in respect of projects which are viable in the opinion of the
management, provision for interest on seed money received from Govt. has
0 been made to the extent of money available after adjusting construction cost,
Interest of financial institutions, maintenance & other charges, if any and
Interest on corporations fund, if any.

4 e) Actual Maintenance cost in respect of toll projects has been charged to
concerned Toll debtors account.

f) In respect of own funds invested in certain projects, which are viable in the
8 opinion of the management, profits in the shape of interest on own funds
@12% of amount invested have been recognized if actually recovered out of
toll.

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9. Detail of work in progress Account.
(Rs. In Lacs.)
Particulars Financial Financial
year 2008-09 year 2007-08
Opening balance 33536.41 27780.66
Work executed during the year 28973.43 17010.06
Total 62509.84 44790.72
Amount transferred to client A/c 13574.71 11254.31
Balance of WIP in progress 48935.13 33536.41
4

10. Fixed Deposits with banks include a sum of Rs.3.71/ crores pledged against margin
money for Bank Guarantee amount to Rs. 13.94 crores. (Previous year Rs 5.75/-
8 crores pledged against margin money for Bank Guarantee amount to Rs. 17.61/-
crores lacks).

11. During the Financial Year 2002-03 the Company has decided to account for, the
2 maintenance charges and interest on own funds invested on the viable toll projects
as income on Toll projects, out of certain toll projects undertaken by the Company
few toll projects where recovery is sufficient to recover the cost of construction,
interest and other costs, have been considered as “Viable Toll Projects” in the
6 opinion of the management. In case of non-viable toll projects the income by way of
maintenance charges and interest on own funds invested on toll projects have been
postponed till there is a reasonable certainty of its recoverability from Toll collection.
Accordingly the company has charged Rs.96.08 Lacs towards maintenance charges
0 @ 1.5% of the total toll collection of seven toll projects for the entire period of toll
upto 31.03.2004. Further the company has charged Rs. 294.25 lacs as interest on
own funds invested in all the viable toll projects fir the entire period of toll upto
31.03.2004 & thereafter it has been discontinued in view of submission of packages
4 to Government of Rajasthan for treating all toll works as one unit.

12. Company has collected excess toll over the project cost amounting to Rs.56,
10,84,564/- (previous year Rs 53, 10, 31,464/-) on few works, the same has been
8 shown as toll creditors under Current Liabilities. The Company has requested Govt.
to adjust excess toll collected against toll deficiency in other works, which have been
shown as toll debtors under Current Assets.

2 13. RSEB & Other Govt. Corporations/ organizations has disputed Rs. 350 lacks on
account of rate difference in centage charges, out of this amount Rs. 63.10 lacks
were charged to profit & loss a/c in the year 2000-01. The Corporation has
recovered Rs.217.03 lacks out of such amount however no provision has been
6 made for the balance centage charges of Rs.69.87 lacks in view of Govt. of
Rajasthan‟s order no. F-8 (27) PW/79/967 dated 02-08-2003 giving consent for
applicability of rate of centage as was applicable on the date on which work order
was placed.
0
14. During the financial year 2004-05, the Company has made prepayment of all
HUDCO loans as per its books of accounts and the balance of HUDCO as on
31.03.2006 is Nil as per books of the Corporation. However as per books of
4 accounts of HUDCO, the Company is liable to pay Rs. 234.00 lacks during the
current year, Matter is under settlement in view of latest developments as per
directions of Finance Department , Government of Rajasthan, vide letter No. F-
11/29/FD/Budget/2008 dated 06/07.2009.
8

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15. In accordance with the Accounting policy of the Company , Company has written off
a sum of Rs 11,59,97,379/- (previous year Rs. 14,30,32,068/-) as Depreciation on
BOT Projects .
4
16. Bill of Piece Rate Worker contractors are accounted for in the year of finalization/
approval.

8 17. Interest income on Loans and Advances to staff are recovered on completion of
recovery of principal amount.

18. Company have under taken construction works of Satsang Bhawan at Govind Dev
2 Ji Temple and Satellite Hospital at Jaipur on No Profit / Loss basis, in view of Board
decision vide no. 24.8 dt. 20.12.06 & No. 27.9 dt. 27.06.07. Consequently Company
is not recognize / received a sum of Rs 4443458/- on Satsang Bhawan and Rs
1724392/- on Satellite Hospital. (Previous year Rs 3437716/- and Rs 629366/-
6 respectively.)

19. Balance shown as Current Liabilities & Provisions” and „Current Assets ,Loan &
Advances “ include certain balances which are unconfirmed and subject to
0 reconciliation and adjustment thereof, if any. will be made at the time of final
reconciliation/ confirmation/ settlement.

20. Company has not received intimation from any „enterprise‟ regarding its status
4 under Micro Small and Medium Enterprise Development Act, 2006 and therefore no
disclosure under the said Act is considered necessary.

21. MANAGERIAL REMUNERATION:
8 Payment to whole time Director

Working Directors Financial year Financial year
2008-09 2007-08
Salary /Remuneration 849995 475584
Contribution to Provided Fund 109008 28800
TOTAL 959003 504374

22.No commission has been paid / payable to the Directors (Including Managing
2 Director) by way of percentage of profit , hence the computation of net profit in
accordance with section 349 of The Companies Act 1956 is not made .

23. Payment to Auditors includes
6
Financial year Financial year
2008-09 2007-08
Audit Fees 67416 67416
Tax Audit Fees 28098 28098
Reimbursement of expenses (Excluding 55000 55000
Service Tax)
Total 150506 150506

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24. DEFERRED TAXATION
The Net deferred tax asset comprises the following components:
4
Particulars / > Financial Year Financial year Financial year
2008-09 2007-08
A: Deferred Tax Assets 675449 6501523
B: Deferred Tax Liabilities 2083562 0
8
NET TOTAL (A-B) (1408113) 6501523

25 EARNING PER SAHRES (EPS):
2
Particulars / > Financial Year Financial year Financial year
2008-09 2007-08
Profit for the year after tax 46,328,656 66,606,890
6
Equity Share Capital 1,00,00,000 1,00,00,000
Number of Equity Shares outstanding at the 10,00,000 10,00,000
end of the year ( face Value Rs 100/- each )
0 Weighted Average number of the equity 10,00,000 10,00,000
shares
Earning per Share ( Face value RS 100/- 46.33 66.61
each ) ( Basic and diluted )
4

26. The Company is engaged in only one reportable segment viz., construction activity and
therefore accounting standard AS-17 on segment reporting is not applicable to the
8 company.

27 Related Party Disclosures:
(A) The name of related Parties of the company are as Under:
2
I Individuals and Key Management personal having substantial interest in
the company
A Shri Dinesh Chand Goyal, Prnicipal Secretary to Govt , PWD ( Chairperson –
EC)
B Shri Abhay Kumar , Secretary , Finance- Exp- II ( Member –EC)
C Shri D C Katara , Chief Engineer PWD ( Member –EC)
D Shri M L mathur , Managing Director , ( Member –EC)
II Relative of Such individual and Key Management personal Key **
III Enterprises in which any person described above have substantial interest
**
** Not disclosure is required, regarding related party relationship with other state
controlled enterprises and transactions with such enterprises as per para no 9 of
Accounting Standard 18 issued by the ICAI.
6

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(B) The details of Transaction with related parties are as follows:
I Individuals and Key Relative of Enterprises in Total
Management personal Such which any
having substantial individual and person
interest in the Key described
company ** Management above have
personal Key substantial
** interest **
Managerial Remuneration/
Salary

Shri M L Mathur , 959003 959003
Fee to Vice Chairperson
Shri Dinesh Chand Goyal 18000 18000
** No transaction has taken place with key management personal or their relatives other
4 than payment of salary and other dues under contractual obligations.

28. Figures for the year and previous year have been rounded up to nearest rupees.

8 29. In the opinion of the Board of Directors of the Company and to the best of their
knowledge and belief, all the current assets, loans & advances have a value on
realization in the ordinary course of business, at least equal to the amount at which
they are stated in the Balance Sheet.
2
30. Previous year Figures have been re-grouped, re-arrange, wherever necessary.

31. Schedule „”A”‟ to “K” are annexed to and forming part of accounts as on 31st March
6 2009.

As per our Report of even date.

0 For : Rajiv Gupta & Associates On the behalf of the Board of Directors
Chartered Accountants

8 (Binod Mittal) (Alok Mathur) (R.K. Singhal) (M.L.Mathur) (D.C.Katara)

Partner Chief Accounts Officer Co. Secretary Managing Director Director

2 Place : Jaipur
Date :

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AUDITOR'S REPORT

TO
4 THE MEMBERS OF
RAJASTHAN STATE ROAD DEVELOPMENT AND
CONSTRUCTION CORPORATION LIMITED, JAIPUR.

8
1. We have audited the attached Balance Sheet of Rajasthan State Road Development and
Construction Corporation Limited, Jaipur, as at 31.03.2009, together with the Profit & Loss
Account and the Cash Flow Statement of the company for the year ended on that date
2 annexed thereto.
These financial statements are the responsibility of the company's management. Our
responsibility is to express an opinion on these financial statements based on our audit. Our
comments on the said financial statements are given in Annexure -I to this report.
6
2. We conducted our audit in accordance with auditing standards generally accepted in India.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An
0 audit includes examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our
4 opinion.

3. As required by the Companies (Auditor‟s Report ) Order, 2003, as amended by Companies
(Auditor‟s Report) (Amendment) Order, 2004 (together „the order‟) issued by the Central
8 Government of India in terms of sub-section (4A) of Section 227 of the Companies
Act.1956, of India (the „Act‟) and on the basis of such checks of the books and records of
the company as we considered appropriate and according to the information and
explanations given to us, we enclose in the Annexure -II , a statement on the matters
2 specified in paragraphs 4 and 5 of the said Order.

4. We further report that without considering observation mentioned in Part II of
Annexure- I of this report, the effect of which could not be ascertained on profit,
6 had the observation made by us in Para I of Annexure- I of this report been
considered, Reserves & Surplus would have been Rs 580.46 Lacks (as against the
reported figure of Rs. 3175.21 Lacks), Current Assets would have been Rs. 80361.05
lacks (as against reported figure of Rs. 76547.49 lacks.), Current liabilities would
0 have been Rs. 82702.15 lacks (as against the reported figure of Rs. 76293.86
lacks.)

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5. Further to our comments in Annexure -I and Annexure- II referred to in paragraph (1) &
(3) and also Paragraph (4) above, we report that:
4
(a) We have obtained all the information and explanations which to the best of our
knowledge and belief were necessary for the purpose of our audit.
(b) In our opinion, proper books of account as required by the law have been kept by
8 the company so far as appears from our examination of those books.
(c) The Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by
this report are in agreement with the books of account maintained by the
company.
2 (d) In our opinion, the Balance Sheet, Profit & Loss Accountant and the Cash Flow
Statement dealt with by this report comply with the mandatory accounting
standards referred to in the sub section (3C) of Section 211 of the Companies Act,
1956 except A. S. 7 : Accounting for Construction Contracts, A. S. 9 : Revenue
6 Recognition, A. S. 15 : Accounting for Retirement Benefits and A. S. 29 : Provisions,
Contingent Liabilities and Contingent Assets.
(e) Being a Government Company, pursuant to the Notification No. GSR 829(E) dated
17.07.2003 issued by Government of India, provisions of clause (g) of sub section
0 (1) of Section 274 of the Companies Act, 1956 are not applicable to the company.
(f) In our opinion, and to the best of our information and according to the
explanations given to us, the said accounts read with the accounting policies &
notes on accounts in the Schedule K , and subject to our comments given in
4 Annexure- I & Annexure- II, to this report give the information required by
the Companies Act,1956, in the manner so required and give a true and fair view in
conformity with the accounting principles generally accepted in India :-
(i) In the case of Balance Sheet, of the state of affairs of the company as at
8 March 31, 2009,
(ii) In the case of Profit & Loss Account, of the Profit For the year ended on
that date; and
(ii) In the case of the Cash Flow Statement, of the Cash Flows for the year
2 ended on that date.
For Gupta Rajiv & Associates
Chartered Accountants

6
(Binod Mittal)
Partner
M. No.
0 Place : Jaipur
Dated :

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Annexure – I - referred to in paragraph I, 4 and 5 of our report of even date on the
accounts of Rajasthan State Road Development and Construction Corporation
4 Limited Jaipur for the year ended on 31st March 2009.
I. Observations the effect of which on Profit & Loss Account and Balance sheet
is ascertainable.
1. In Reference to Note No 2, The Company has conducted an actuarial valuation from
8 the LIC and as per report dt 04/06/2009, the value of past service liability is 2687.00
lacks as against company has only Rs 1075.79 Lacks in its Pension Scheme Fund
Account. Company has not made any provision for the remaining unfunded amount of
Rs 1612.21 Lacks same has overstated General Reserve and understated of current
2 liabilities up to that extent.
2. In Reference to Note No 3,The Company has received renewal quotation for scheme
of LIC , and as per that quotation present value of liability for Gratuity for Past Services
(to be funded) is Rs 351.36 lacks as at the end of the financial year . Company has not
6 made any provision for the remaining unfunded amount of Rs 103.94/-Lacks.Same has
overstated General Reserve and understated of current liabilities up to that extent.
3. Deposits received from Government against unviable toll projects amounting to Rs
2429.56 lacs have been deducted from the toll debtor‟s account instead of showing the
0 same as liability; consequently the current assets and current liabilities are understated
to that extent.
4. Income from Toll Projects.
(a) In Reference to Note No. 10,Regarding change in accounting policy for accounting
4 of Maintenance Cost @ 1.5 % of Toll Collection. The Corporation has reverted to its
original policy of charging only actual maintenance cost to respective Toll Debtors
a/c. The said policy was changed in the year 2002-03 to charging of 1.5% of Toll
collection to respective Toll debtors account, Further we have observed that in the
8 year 2002-03 & 2003-04 the Corporation has charged Rs. 96.08 lacs as
maintenance cost @ 1.5% on Total Toll collection (since beginning of the Toll)
pertaining to projects which were classified as viable in the opinion of the
management. In this regard we have observed that the Corporation already debited
2 actual maintenance cost of the concerned project to the relevant Toll Debtor account
in the year of expenditure and no separate figures are available for the same.
Although the Corporation has reverted to its previous policy of debiting actual
maintenance cost but Rs. 96.08 lacs debited in the year 2002-03 & 2003-04 have
6 not been reverted, the same has resulted in overstatement of General Reserve by
Rs. 96.08 lacs and understatement of Toll creditors account by similar amount.

0 (b) In Reference to Note No. 8 and10 ,Regarding charging of Interest @ 12% on own
fund invested on certain toll projects. In this regard we have observed that the
Corporation did not have any approval from Government for charging such interest
on own funds. Further no such Interest was charged to such projects upto the year
4 2001-02, however during the year 2002-03 & 2003-04 the Corporation has charged
Rs. 291.01 lacs and Rs. 3.24 lacs respectively as Interest on own funds. Hence we
cannot comment on the same. Had the interest on own funds not charged general
reserves as on 31.03.2009 would have been lower by Rs.294.25 lacs and Toll
8 Creditors account would have been higher by similar amount.

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The same is not in accordance with Accounting Standard 9 : Revenue Recognition,
as per the said accounting standard , revenue should be recognized only when no
significant uncertainty as to collectibility exists, and as per reasons mentioned
4 above, significant uncertainties are attached with the collection of maintenance
charges and interest on own fund. Hence the same should not be recognized.
5. Work in Progress as on 31.03.2009 includes certain works which have already been
completed but are not adjusted from Advance from client account/ Sundry Debtors
8 amounting to Rs 1384/- lacks by the company during the year. In our opinion, when
work is complete then it should be adjusted from WIP. The same have resulted in
overstatement of WIP by Rs. 1384/- lacks and overstatement of Advance from clients
by same amount.
2 6. Loans & Advances includes Rs. 6.19 lacs towards Advance to Private parties given by
the Mechanical Unit of the Company against which it has been explained that material
have been received several years ago and consumed but bills are to be adjusted. No
provisions for the same have been made in the books of accounts. The same has
6 resulted in overstatement of Loans & Advances and general reserves by Rs.6.19 lacs.
II. Observations the effect of which could not be ascertained on Profit & Loss
Account and Balance Sheet :-
1. In Reference to Note No 05,Regarding demand from Govt. of Rajasthan to deposit
0 interest earned on P.D. account pertaining to funds received for Police Modernization.
However the Corporation has not deposited the same, further no provision against the
interest earned by the Corporation on funds of Rs 9310.88 lacs received from
Government for various works under Police Modernization scheme during past several
4 years has been made. The Corporation has not provided us with details of Interest
earned by it in this regard hence we cannot quantify the same. The same is not in
accordance with Accounting Standard 9 : Revenue Recognition.

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2. In Reference to Note No 8, Regarding accounting in respect of Toll projects. The
Corporation has not provided any loss on projects, which are classified as unviable in
4 the opinion of the management. Actual loss to the Corporation in this regard cannot be
quantified. Further the Corporation has not made any provision for interest payable on
Seed Money, Deposit from Government and Amount received from Road Development
Fund other than a provision of Rs. 445.61 lacs (Upto 31.03.2009) made in respect
8 of seed money for projects, which are viable in the opinion of the management. This
has resulted into overstatement of profit as well as general reserves of the
Corporation. In the absence of complete details the amount of the same is
unascertainable. As such we are unable to comment on that and consequently its
2 effect on profit, general reserve and current assets is unascertainable.
3. In Reference to Note No 11, Regarding provision of interest on excess toll collected
on certain projects and shown in toll creditors under Current Liabilities whereas the
Corporation has booked income in the shape of interest @ 12% on own fund invested
6 in viable projects. This has resulted into overstatement of profit, as well as general
reserves of the Corporation. In the absence of complete details the amount of the
same is unascertainable. As such we are unable to comments on that and
consequently its effect on profit, general reserve and current assets in unascertainable.
0 4. The Corporation has incurred extra cost as compared to sanctioned cost , in the
construction of certain bridges / road projects amounting to Rs. 1384/- Lacks on
which recovery of investment is by way of Toll, the sanction for the extra expenditure
incurred by the Corporation is yet to be given by the Government. In case of non-
4 sanction of the same, the Corporation may have to bear the additional cost. Actual loss
to the Corporation in this regard cannot be quantified and consequently its effect on
Profit, General Reserve & Current Assets is unascertainable.
5. In Reference to Accounting Policy No. 7-C of Para A, wherein the Corporation has
8 made change in the accounting policy of loading 9% Centage charges on BOT
Projects in earlier years to loading of actual administrative expenses of units and
proportionate share of Head Office overheads to these BOT Projects in the Financial
year 2006-07 to 2008-09. The impact of this change in accounting policy on earlier
2 years is unascertainable.

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6. While verifying the Profit / Loss on construction works other than those awarded purely
on actual cost plus basis,, it has been observed that :-
(i) Corporation is calculating profit / loss on such works by deducting direct cost
4 incurred from total value of work done which is calculated on the basis of work
certified by the client and work uncertified as per the estimate of the
management. In some units the value of work uncertified has been taken based
on financial values as per ledger, whereas in some units figure of work
8 uncertified is on the basis of estimates made by concerned engineer for which
no documentary proof is available. In this regard we have also observed that in
some units corresponding bill of sub-contractor against work Certified /
uncertified is not booked leading to improper figure of Profit / Loss.
2 (ii) In some projects the Corporation has spend more than the sanctioned cost and
revised estimates are pending with the client department, profit on such
projects have been determined on the basis of revised cost which is subject to
approval of client department, final sanction / non-sanction of the same may
6 affect the figure of Profit / Loss on concerned project. In the absence of
complete details we cannot quantify the same.
(iii) The Corporation is liable for maintenance of certain roads and other
construction works during “Defect Liability Period” which varies from contract to
0 contract, however the Corporation has not made any provision for the for
“Estimated cost of rectification and guarantee work, including expected
warranty cost”, the same is not in accordance with the Accounting Standard 7
(Revised 2002) : Accounting for Construction contract, the same has resulted in
4 overstatement of profits of the Corporation.
(iv) Refer accounting policy No.1.2 (B) regarding recognition of Profit / Loss on
Tendered work, the Corporation is including quantum of work done but not
billed upto the end of financial year, even if not realized in subsequent year. In
8 this regard we have observed there are variations between amount of work
certified as per the Tender Profit & Loss statement submitted to us and the
actual amount received from client as per the books of the Corporation, further
few clients has withheld payment to the Corporation on various grounds and
2 had kept the same under the head of “Misc. Deposit”, the Corporation has not
deducted the same while calculating profit / loss on Tender works. In the
absence of complete details we cannot verify the same.
In view of the reasons as mentioned above, we are unable to comment on
6 Tender Loss / Profit and consequently its effect on financial statements is
unascertainable.

0
7) Depreciation and Amortization:
(i) In Reference to Accounting Policy No. 3-B of Para A, Regarding providing of
depreciation on fixed assets at rates other than the rates as prescribed in
4 schedule XIV of the Companies Act,1956. In absence of complete details
impact of the same on profits as well as on fixed assets is unascertainable.
(ii) In Reference to Accounting Policy No. 3-B of Para A, period of rights for
amortization of cost of 8 B.O.T. project have been taken on the basis of Project
8 Report submitted to the Government of Rajasthan. In the absence of specific
government sanction for concession period we cannot verify the same and
consequently its effect on profit and fixed assets is unascertainable.

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8) In Reference to Note No. 14, Regarding non-reconciliation of amount of loans from
financial institutions, in this regard we have observed that:-
During the financial year 2004-05, the Company has made prepayment of all
4 HUDCO loans as per its books of accounts and the balance of HUDCO as on
31.03.2006 is Nil as per books of the Corporation. However as per books of
accounts of HUDCO, the Company is liable to pay Rs. 234.00 lacks.
During the current year, Matter is under settlement in view of latest developments as
8 per directions of Finance Department, Government of Rajasthan, vide letter No. F-
11/29/FD/Budget/2008 dated 06/07.2009.

9) In Reference to Note No. 19, Company has not followed any procedures to
2 obtained confirmation for their balance featured in a particular day in the books of
accounts and not followed any procedure for reconciliation of Sundry Debtors,
Creditors and other liabilities, Loans and Advances, Toll Debtors, Advances from
Clients whose final confirmation / reconciliation may effect our disclosure. The above
6 includes certain old balances lying since long time for which time bound program
should be made for provisioning and writing it off in the phased manner.
Further, any deductions made by certain clients out of bills of various works
executed by the Company, the Company has not provided any loss against the
0 deductions which are not accepted by the Company. Complete information in
respect of deductions made by various clients is not available and actual liability of
Corporation in this regard cannot be ascertained.
Hence, we cannot comment regarding adequacy of provision for doubtful debts and
4 advances.
10) In Reference to Note No. 4,and Accounting Policy No. 5 of para A, Wherein the
Company has not followed AS-15 “Accounting for Retirement Benefits” issued by the
Institute of Chartered Accountants of India in respect of leave encashment benefit.
8 The Company had made a cumulative provision for Rs.45.00 lacks up to 31.03.2000
towards leave encashment liability however no provision has been made in the
books after 31.03.2000 and actual liability in this regards is not ascertainable.
11) In Reference to Note No 1 (c), Regarding attachment of the bank accounts of the
2 Company by the Commissioner, Employee Provident Fund Organization and
withdrawing Rs. 133.61 lacs against the total demand of Rs. 253.81 lacs pertaining
to PF dues for the period June 1982 to February 1993.The Company has classified
the same under the head of Current Assets and no provision has been made against
6 the same.
Further the Company has not made any provision for the liability of PF regarding
contractors worker for the period March 1993 to March 2009 The Corporation has
filed a appeal against the order of Commissioner, EPF organization and the matter is
0 sub-judice, hence we cannot comment on the same.
12) In Reference to No. 13, Regarding dispute on account of rate difference in centage
charges amounting to Rs. 350 lacs .Out of the above amount Rs. 63.10 lacs were
charged to Profit & Loss account in the year 2000-01 and Rs.217.03 lacs were
4 recovered in the year 2004-05 out of such amount however no provision has been
made for the balance centage charges of Rs.69.87 lacs, as the Company is hopeful
of its recovery in view of Govt. of Rajasthan‟s order No. F-8(27)PW/79/967 dated
02.08.2003 giving consent for applicability of rate of centage as was applicable on
8 the date on which work order was placed. However we cannot comment on
recoverability of the same.

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13) The Company has not shown Total Turnover of the Company and direct Contract
Expenses in the Profit and Loss account .Which is violation of provisions of
Schedule VI of the Companies Act, 1956.
4 14) In Reference to Note No. 1.a, Regarding contingent liabilities in respect of “Claims
of Workmen / Contractors / Private Party‟s pending adjudication / Appeal – Amount
unascertainable”. In this regard it has been observed that the Corporation does not
have a system to Quantify Contingent liabilities in respect of claims of the parties
8 mentioned above; hence the amount could not be ascertained leading to non-
disclosure of amount of contingent liabilities in this regard. In the absence of
complete details we cannot comment on the same, further the same is not in
accordance with A.S. 29: Provisions, Contingent Liabilities and Contingent Assets.
2 15) The Company has debited differential sales tax pertaining to cement purchased
during the year 1997-98 to 2001-02 to the accounts of concerned work on which
such cement was used in earlier years. In respect of cement used in works of cost
plus works, the Company has also claimed centage charges on such amount. In this
6 regard it has been observed that most of these works are already closed and
recovery of this amount from clients is doubtful and the Company has not provided
us with acceptance of this liability from concerned clients, hence we cannot comment
on recoverability of the same.
0 16) In absence of details and Title Deeds of Leasehold Land, we are unable to comment
on correctness of value of leasehold land and liability, if any, arises on account of
that.
17) Bank Balance of following units are subject to confirmation/ reconciliation :-

S.No. Name of Unit Name of Bank Amount in Rs.

1 Alwar Detail not available 250356/-

4
18) Outstanding Liabilities Amounting Rs. 6958831/- at various unit is outstanding since
long in respect of which no detail available with the company.
19) Company has fully discharged payment of arrear salary payable due to
8 recommendation of sixty pay commission for the period from 01/01/07 to 31/03/08
and derecognize of excess provision of Rs 1.92 lacks out of Rs 365.70 lacks in the
year in the Profit and Loss Account. This was made during the last year without
inadequate detailed calculation. Hence Company profit is over stated up to Rs 1.92
2 lacks for the year.

6
For Gupta Rajiv & Associates
Chartered Accountants
Place : Jaipur
0 Date :

(Binod Mittal)
Partner
4

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ANNEXURE - II
4 TO THE AUDITOR’S REPORT TO THE MEMBERS OF
RAJASTHAN STATE ROAD DEVELOPMENT & CONSTRUCTION CORPORATION
LIMITED.
(Referred to in Paragraph (3) of our report, of even date on the accounts for
8 the year ended As on 31st March, 2009)

(i) (a) The company has maintained proper records of fixed assets excluding shuttering
material.
2
(b) Physical verification of the fixed assets was not conducted by the management for
past several years. However during the month of August 2004 the company has
started the process of physical verification of fixed assets and information has
6 been called from various units regarding description and quantity of the fixed
assets lying with them. In our opinion the procedure and interval for verification of
fixed assets is grossly deficient looking to the size of the corporation. As per the
lists of fixed assets received from various units – certain items of fixed assets
0 have been marked as “Unserviceable”, however the corporation has not made any
adjustment in values due to such unserviceable fixed assets.

(ii) (a) The inventories have been physically verified during the year by the management. In
our opinion, the frequency of verification is reasonable
8
(b) The procedure followed for physical verification of inventories is not reasonable
and are inadequate in relation to the size of the company and nature of its
business. The actual measurements of various items of stock are not taken at
2 the time of physical verification and quantities are reported to have been
physically verified as per book records only. The instructions issued by the
management with regard to physical verification are also not being properly
followed.
6
(c) In our opinion and according to the information and explanation given to us and on
the basis of our examination of the records of inventory, the company is
maintaining proper records of inventory. However no material discrepancies were
0 noticed on physical verification of inventories.

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(iii) (a) According to the Information & Explanation given to us, the company has not
granted or taken any loan to / from the parties listed in the register maintained
4 under Section 301 of the Companies Act, 1956.

(b) In view of clause (iii)(a) above, Clause (iii)(b),(iii)(c) & (iii)(d) are not applicable to
the company.
8
(iv) In our opinion and according to the information and explanations given to us, there are
adequate internal control procedures commensurate with size of the company and the
nature of its business for the purchase of inventory and fixed assets and for the sale
2 of goods. We have neither come across nor have we been informed of any instances of
major weakness in the aforesaid internal control procedures and continuing failure on
the part of the management to take corrective action in this regard.

6 (v) (a) According to the information and explanation given to us, we are of the opinion that
the company has not entered into any transaction that need to be entered in the
register maintained under Section 301 of the Companies Act, 1956.

0 (b) In view of clause V (a) above, the clause V (b) is not applicable.

(vi) The company has not accepted any deposits from the public within the meaning of
Section 58A & 58AA or any other relevant provision of the Companies Act 1956. No
4 order has been passed by the Company Law Board or Reserve Bank of India.

(vii) In our opinion, the company‟s internal audit system is inadequate looking to the size and
nature of its business. The scope of work given to Internal Auditor and its follow up
8 needs to be strengthened.

(viii) According to the information & explanation given to us the Central Government
has not prescribed the maintenance of cost records under Section 209 (1) (d) of the
2 Companies Act, 1956 in respect of the products of the corporation.

(ix) (a) To the best of our knowledge and information obtained and verifications made, we
report that the company is generally regular in depositing with appropriate
6 authorities undisputed statutory dues including provident fund, investor education
protection fund, employees' state insurance, income tax, sales tax, wealth tax,
service tax, custom duty, excise duty, cess and other material statutory dues
applicable to it. Further according to the information & explanation given to us, no
0 undisputed amounts payable in respect of aforesaid dues were outstanding as at
31st March 2008 for a period of more than six months from the date they become
payable .

4 (b) According to the information and explanations given to us, and the records of the
Company, the details of aforesaid statutory dues as at 31.03.2009 which have not
been deposited with the appropriate authorities on account of any dispute, are
given below :
8

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Nature of the Nature of Dues Amount Period to which Forum where the
Statute (Rs . In the amount dispute is pending
lacks) relates
Income Tax Act 80 IA , GF, PPE 110.41 2005-2006 CIT (Appeal)
and SRF
Income Tax Act Prior Period Exp 15.54 2004-2005 CIT (Appeal)
Income Tax Act PF 13.02 2001-2002 ITAT
Income Tax Act 80 IA 2.26 2002-2003 High Court
State Sales Tax Act Additional Tax 761.31 1998-99 D.C. (Appeal)
Levies Rajasthan Tax
Board
State Sales Tax Act Additional Tax 139.27 2004-05 D.C. (Appeal)
Levies
State Sales Tax Act Additional Tax 23.46 2005-06 D.C. (Appeal)
Levies

(x) The company has no accumulated losses at the end of the financial year and it has not
incurred any cash losses in the current and immediately preceding financial year.
4
(xi) In our opinion and according to the information and explanations given to us, the
company has not defaulted in repayment of dues to a financial institution, bank or
debenture holders except loan of HUDCO as referred to in Para 15 of Part II of
8 Annexure II of our report is under reconciliation, hence we cannot comment on
default status of the same.

(xii) According to the information and explanation given to us, company has not granted loans
2 and advances on the basis of security by way of pledge of shares, debentures and other
securities.

(xiii) In our opinion, the company is not a chit fund or a nidhi/ mutual benefit fund/ society.
6 Therefore. the provisions of clause 4(xiii) of the Companies (Auditor's Report) Order,
2003 are not applicable to the company.

(xiv) In our opinion, during the year under audit, the company did not engage in dealing or
0 trading in shares, securities, debentures. Accordingly, the provisions of clause 4(xiv) of
the Companies (Auditor's Report) Order, 2003 are not applicable to the company.

(xv) According to the information and explanation given to us, the company has not given any
4 guarantee for loan taken by others from bank or financial institution.

(xvi) To the best of our knowledge and belief and according to the information & explanation
given to us, term loans availed by the company were, prima facie, applied by the
8 company for the purpose for which the loans were obtained.

(xvii) According to the information and explanations given to us and on an overall examination
of the balance sheet of the company, we report that the no funds raised on short-term
2 basis have been used for long-term investment.

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(xviii) According to the information and explanations given to us, the company has not
made preferential allotment of shares to parties and companies covered in the
register maintained under section 301 of the Companies Act, 1956.
4
(xix) According to the information and explanations given to us and records examined by us,
the company has not issued any debentures during the year.

8 (xx) According to the information and explanation given to us the company has not raised
any money from Public Issue during the year hence the question of disclosure and
verification of end use of such money does not arise.

2 (xxi) According to the information and explanations given to us, no fraud on or by the
company has been noticed or reported during the course of our audit.

For Gupta Rajiv & Associates
6 Chartered Accountants

(Binod Mittal)
0 Partner
M. No.
Place : Jaipur
Dated :
4

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ADDENDUM TO THE DIRECTORS REPORT UNDER SECTION 217(3) OF THE
COMPANIES ACT
Replies/ Clarifications to the observations in Auditors Report are as under: -
4

Para No. 1 to 5 : No Comments

8 Annexure – I
I). Observations the effect of which on Profit & Loss Account and Balance Sheet
is ascertainable.

2 1. At present the Corporation is earning Interest @ 8% in the P.D. A/c (Rate admissible
on pension funds deposited with the Govt. of Raj. by various Boards/ Corporations)
and is sufficient to meet the pension liabilities of Corporation employees upto 2021
(As per LIC actuarial) because 12% of pay plus D.A. of every employees is being
6 deposited in P.D. A/c every month, for future planning matter is being considered
and a committee comprising of Secretary to GOR Finance Department, MD & CAO,
RSRDC Ltd. to get the actuarial valuation done and examine reasons for the short-
fall in the pension fund. The last meeting of the Committee was held on 28 th August,
0 2009 and its report is under process.
The Board of Directors in its 32nd Meeting held on 25.09.2008 has approved transfer
on Rs. 200 lacs to employees Pension Fund and additional provision for Rs. 250
lacs have been made in the account to narrow down gap of shortfall in pension fund.
4
2. In view of implementation of 6th Pay Commission, increase in maximum amount of
gratuity to Rs.10 lacs and enhancement of retiring age to 60 years, the LIC has
submitted updated present value of liability as Rs.351.36 lacs, Rs. 247.42 lacs has
8 been paid to LIC so far unfunded amount of Rs. 103.94 lacs will be squared up in
next four years.

3. Rs. 2429.56 lacs is deposit received by the Corporation on following works: -
(Rs. in lacs)
i) Const. of Parvati Bridge Baran - 543.00
ii) Chambal Bridge, Palighat, Sawaimadhopur - 596.56
iii) Kalisindh Bridge, Kota - 1290.00
_________
Total 2429.56
_________
2

In the year 1995 the Corporation had taken loan from HUDCO to complete these
projects on the directions of the State Govt. It is estimated that Corporation will not

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be able to recover the deposits from toll collection, as these are unviable projects.
Therefore, it has been deducted from the toll debtors.

4 4. Income from Toll Projects: -
(a) The actual cost of maintenance on viable toll projects has been debited to the
concerned work. The practice of charging 1.5% of toll collection has been
dispensed with till approval from the Govt. is received.
8
(b) Charging of interest on funds deployed by the Corporation on the lines of loan
taken from financial institutions is fully justified in view of full recovery of
interest being effected from toll collection. Hence there is no overstatement of
2 general reserves.

However in the year 2004-05 to 2008-09 no funds were employed by the
Corporation on institutionally financed works and accordingly no interest has
6 been claimed

5. A special drive was initiated to financially close the works, which were physically
complete. Works amounting to Rs.2618.32 lacs were financially closed in the year
0 2008-09 for closing the remaining works vigorous efforts are being made.

6. The efforts have been made for recovery/ adjustment of advance amounting to
4 Rs.6.19 lacs.

II. Observations the effect of which could not be ascertained on Profit & Loss
8 Account and Balance Sheet: -

1. The Corporation is receiving funds from the Home Department for police
2 modernization & Jail works since the year 2001-02. Nowhere in the sanctions for
releasing funds to the Corporation is stated that funds are to be kept in the non-
interest bearing P.D. A/c only. It is mentioned in the sanction that amount is
transferred to P.D. A/c, consequently deposit were transferred to interest bearing
6 P.D. A/c by the Corporation. On pointing out by the Home Department that funds are
to be kept in non interest bearing P.D. A/c, the amount available in interest bearing

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P.D. A/c was transferred to non- interest bearing A/c on 31.01.2005. Thereafter all
the funds received have been kept in non- interest bearing P.D. A/c.

4 As regards interest due to Home Deptt. it is submitted that in P.D. A/c funds of other
Departments as well as surplus funds of the Corporation were also deposited in view
of the direction from the Finance Department (Ways & means) and amount was
drawn from P.D. A/c looking to the day to day working capital requirement of the
8 Corporation, therefore it is not possible to calculate the interest earned on Home
Department deposits.

2. The toll collection on unviable projects is not sufficient to cover even the interest &
2 repayment made by the Corporation to financial institutions. Due to inadequate toll
collection the interest on seed money is not being provided. As and when toll will be
sufficient to cover the interest on seed money the same shall be provided for. Non-
providing of interest does not result in overstatement of profit. The works, which are
6 viable and toll has been closed, interest on seed money amounting to Rs. 445.61
lacs has been credited to PWD.

3. The Corporation has not made any provision of payment of interest on excess toll
0 collection in view of absence of guidelines in the respective project report. Similarly
Corporation has not charged any interest on short- fall in toll collection on unviable
projects. Hence matching concept of expenditure & revenue has been followed.

4 4. The Government has been apprised about final cost of the toll projects while
submitting toll package for consideration. The excess expenditure has been
accounted for while submitting the details of amount refunded/ receivable from the
Govt. on account of all the toll works.
8
5. No Comments.

6.
2 i) In all the tender works actual quantum of work done i.e. work certified & paid
by the clients and uncertified work at the year end has been accounted for. It
is being consistently followed.

6 ii) The Government has been apprised about final cost of the toll projects while
submitting toll package for consideration. The excess expenditure has been

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accounted for while submitting the details of amount refunded/ receivable
from the Govt. on account of all the toll works.

4 iii) In all the tender works actual quantum of work done i.e. work certified & paid
by the clients and uncertified work at the year end has been accounted for. It
is being consistently followed.

8 iv) The Actual expenditure incurred on maintenance is being charged to
concerned work as and when payable in the respective year. This is being
followed in respect of toll projects also.

2 v) In all the tender works actual quantum of work done i.e. work certified & paid
by the clients and uncertified work at the year end has been accounted for. It
is being consistently followed.

6
7.
i) As per past practice depreciation has been charged as a pert of tax planning.

0 ii) Government has not prescribed concession period in the order for the works
allotted upto 31.03.03 on BOT basis. Therefore, amortisation cost of BOT
projects have been taken on the basis of project report submitted to the
Government of Rajasthan.
4
8. Matter is under settlement with HUDCO through Government of Rajasthan.

9. Letters have been written to all the clients to confirm the outstanding balance.
8 Amount deducted by clients on account of liquidated damages has been debited for
concerned works. As and when L.D. amount is refunded by client, it is credited back
to the work.

2 10. Pending actuarial leave encashment valuation from LIC no further provision has
been made in the accounts.

11. Total demand of Rs. 860.53 lacs has been reduced to Rs. 253.00 lacs on remand
6 back of the case. Appeal against order of CPF Commissioner is pending before EPF
Tribunal.

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12. All the clients who have disputed the admissibility of the centage charges have been
requested for release of our due payments in vie of Governments clarification dated
4 02.08.2003.

13. It is already exhibited in Schedule 'K' which is a part of accounts.

8 14. An amount of Rs.275.55 lacs has already been shown as contingent liability in notes
of accounts on account of arbitration awards. In cases other than arbitration it is not
possible to ascertain the liability on account of pending litigation.

2 15. During the year 2004-05 the Corporation has credited Rs. 180.69 lacs towards
liability of differential sales tax pertaining to Cement purchased during the year
1997-98 to 2001-02 the same has been debited to the accounts of concerned works
in which such cement was used in earlier years.
6
16. Relevant orders of allotment of land by Revenue Department, Government of
Rajasthan are available in the record.

0 17. Concerned units have been directed to obtain confirmation of old Bank Balances.
Compliance shall be reported to the Board very shortly.

18. Concerned units have been directed to furnish the details of outstanding liabilities.
4 Compliance shall be reported shortly.

19. No comments.

8 By order of the board

2 Managing Director Director

Place: Jaipur
Date:
6

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Annexure – I I

4 i)
(a) No comments.
(b) Detailed guidelines are being followed the observation under rules.
(c) No comments.
8
ii)
(a) No comments.
(b) Detailed guidelines have been issued to all the units to follow the
2 observations under rules. The physical verification is being conducted
departmentally by deputing an Asstt. Resident Engineer and AAO/
Accountant of the other unit to conduct physical verification work to check
measure, count, weightment actual measurements. In most of the cases like
6 steels, sand, grit etc. is not possible to weight. The cost of weightment will be
too heavy. Physical verification report submitted by the concerned committee
are sent for verifications to the unit offices and necessary action if any is
taken.
0
(c) No comments.

iii)
4 (a) No comments.
(b) No comments.

iv) Noted for compliance.
8
v) No comments.
vi) No comments.
vii) The scope of work of internal audit has been prepared in detail. Departmental Staff
2 has conducted internal audit during the year.
viii) No comments.
ix) No comments.
x) No comments.
6 xi) No comments.
xii) No comments.

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xiii) No comments.
xiv) No comments.
xv) No comments.
4 xvi) No comments.
xvii) No comments.
xviii) No comments.
xix) No comments.
8 xx) No comments.
xxi) No comments.

By order of the board
2

Managing Director Director
6
Place: Jaipur
Date:

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Replies/ Clarifications to the observations in Auditors Report
As on 31.03.2009
4
S. Statutory Auditor’s Report Replies/ Clarification of
No. Management
1. We have audited the attached Balance Sheet of No Comments
Rajasthan State Road Development and
Construction Corporation Limited, Jaipur, as at
31.03.2009, together with the Profit & Loss
Account and the Cash Flow Statement of the
company for the year ended on that date
annexed thereto.
These financial statements are the
responsibility of the company's management.
Our responsibility is to express an opinion on
these financial statements based on our audit.
Our comments on the said financial statements
are given in Annexure -I to this report.

2. We conducted our audit in accordance with No Comments
auditing standards generally accepted in India.
Those standards require that we plan and
perform the audit to obtain reasonable
assurance about whether the financial
statements are free of material misstatement.
An audit includes examining, on a test basis,
evidence supporting the amounts and
disclosures in the financial statements. An audit
also includes assessing the accounting
principles used and significant estimates made
by management, as well as evaluating the
overall financial statement presentation. We
believe that our audit provides a reasonable
basis for our opinion.

3. As required by the Companies (Auditor‟s No Comments
Report ) Order, 2003, as amended by
Companies (Auditor‟s Report) (Amendment)
Order, 2004 (together „the order‟) issued by the
Central Government of India in terms of sub-
section (4A) of Section 227 of the Companies
Act.1956, of India (the „Act‟) and on the basis
of such checks of the books and records of the
company as we considered appropriate and
according to the information and explanations
given to us, we enclose in the Annexure -II , a
statement on the matters specified in paragraphs
4 and 5 of the said Order

4 We further report that without considering No Comments
observation mentioned in Part II of
Annexure- I of this report, the effect of which
could not be ascertained on profit, had the

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observation made by us in Para I of
Annexure- I of this report been considered,
Reserves & Surplus would have been Rs
580.46 Lacks (as against the reported figure of
Rs. 3175.21 Lacks), Current Assets would
have been Rs. 80361.05 lacks (as against
reported figure of Rs. 76547.49 lacks.),
Current liabilities would have been Rs.
82702.15 lacks (as against the reported figure
of Rs. 76293.86 lacks.)
5. Further to our comments in Annexure -I and No Comments
Annexure- II referred to in paragraph (1) & (3)
and also Paragraph (4) above, we report that:
(a) We have obtained all the information
and explanations which to the best of our
knowledge and belief were necessary for the
purpose of our audit.
(b) In our opinion, proper books of account
as required by the law have been kept by the
company so far as appears from our
examination of those books.
(c) The Balance Sheet, Profit & Loss
Account and Cash Flow Statement dealt with
by this report are in agreement with the books
of account maintained by the company.
(d) In our opinion, the Balance Sheet, Profit
& Loss Accountant and the Cash Flow
Statement dealt with by this report comply with
the mandatory accounting standards referred to
in the sub section (3C) of Section 211 of the
Companies Act, 1956 except A. S. 7 :
Accounting for Construction Contracts, A. S. 9
: Revenue Recognition, A. S. 15 : Accounting
for Retirement Benefits and A. S. 29 :
Provisions, Contingent Liabilities and
Contingent Assets.
(e) Being a Government Company,
pursuant to the Notification No. GSR 829(E)
dated 17.07.2003 issued by Government of
India, provisions of clause (g) of sub section (1)
of Section 274 of the Companies Act, 1956 are
not applicable to the company.
(f) In our opinion, and to the best of our
information and according to the explanations
given to us, the said accounts read with the
accounting policies & notes on accounts in the
Schedule K , and subject to our comments
given in Annexure- I & Annexure- II, to this
report give the information required by the
Companies Act,1956, in the manner so required
and give a true and fair view in conformity with
the accounting principles generally accepted in
India :-
(i) In the case of Balance Sheet, of the state
of affairs of the company as at March 31, 2009,

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(ii) In the case of Profit & Loss Account, of
the Profit For the year ended on that date; and
(iii) In the case of the Cash Flow Statement,
of the Cash Flows for the year ended on that
date.

I. Observations the effect of which on Profit
& Loss Account and Balance sheet is
ascertainable.

1. In Reference to Note No 2, The Company has
conducted an actuarial valuation from the LIC 1. At present the Corporation
and as per report dt 04/06/2009, the value of is earning Interest @ 8% in the
past service liability is 2687.00 lacks as against P.D. A/c (Rate admissible on
company has only Rs 1075.79 Lacks in its pension funds deposited with
Pension Scheme Fund Account. Company has the Govt. of Raj. by various
not made any provision for the remaining Boards/ Corporations) and is
unfunded amount of Rs 1612.21 Lacks same sufficient to meet the pension
has overstated General Reserve and liabilities of Corporation
understated of current liabilities up to that employees upto 2021 (As per
extent LIC actuarial) because 12% of
pay plus D.A. of every
employees is being deposited in
P.D. A/c every month, for
future planning matter is being
considered and a committee
comprising of Secretary to
GOR Finance Department, MD
& CAO, RSRDC Ltd. to get the
actuarial valuation done and
examine reasons for the short-
fall in the pension fund. The last
meeting of the Committee was
held on 28th August, 2009 and
its report is under process.
The Board of Directors in its
32nd Meeting held on
25.09.2008 has approved
transfer on Rs. 200 lacs to
employees Pension Fund and
additional provision for Rs. 250
lacs have been made in the
account to narrow down gap of
shortfall in pension fund.
2. In view of implementation of
In Reference to Note No 3,The Company has
2 6th Pay Commission, increase in
received renewal quotation for scheme of LIC ,
maximum amount of gratuity to
and as per that quotation present value of
Rs.10 lacs and enhancement of
liability for Gratuity for Past Services (to be
retiring age to 60 years, the LIC
funded) is Rs 351.36 lacks as at the end of the
has submitted updated present
financial year . Company has not made any
value of liability as Rs.351.36
provision for the remaining unfunded amount
lacs, Rs. 247.42 lacs has been
of Rs 103.94/-Lacks.Same has overstated
paid to LIC so far unfunded
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General Reserve and understated of current amount of Rs. 103.94 lacs will
liabilities up to that extent. be squared up in next four
years.

3. Rs. 2429.56 lacs is deposit
Deposits received from Government against
3. received by the Corporation
unviable toll projects amounting to Rs 2429.56
on following works: -
lacs have been deducted from the toll debtor‟s (Rs. In
account instead of showing the same as lacs)
liability; consequently the current assets and i Const. of Parvati 543.00
current liabilities are understated to that extent Bridge Baran
ii Chambal Bridge, 596.56
Palighat,
Sawaimadhopur
iii Kalisindh Bridge, 1290.00
Kota
Total 2429.56

In the year 1995 the
Corporation had taken loan
from HUDCO to complete
these projects on the directions
of the State Govt. It is estimated
that Corporation will not be
able to recover the deposits
from toll collection, as these are
unviable projects. Therefore, it
has been deducted from the toll
debtors.
4. 4. Income from Toll Projects: -
Income from Toll Projects.
(a) In Reference to Note No. 10,Regarding change (a) The actual cost of
in accounting policy for accounting of maintenance on viable toll
Maintenance Cost @ 1.5 % of Toll Collection. projects has been debited to the
The Corporation has reverted to its original concerned work. The practice of
policy of charging only actual maintenance cost charging 1.5% of toll collection
to respective Toll Debtors a/c. The said policy has been dispensed with till
was changed in the year 2002-03 to charging of approval from the Govt. is
1.5% of Toll collection to respective Toll received.
debtors account, Further we have observed that
in the year 2002-03 & 2003-04 the Corporation
has charged Rs. 96.08 lacs as maintenance
cost @ 1.5% on Total Toll collection (since
beginning of the Toll) pertaining to projects
which were classified as viable in the opinion of
the management. In this regard we have
observed that the Corporation already debited
actual maintenance cost of the concerned
project to the relevant Toll Debtor account in
the year of expenditure and no separate figures
are available for the same. Although the
Corporation has reverted to its previous policy
of debiting actual maintenance cost but Rs.
96.08 lacs debited in the year 2002-03 & 2003-
04 have not been reverted, the same has
resulted in overstatement of General Reserve by
Rs. 96.08 lacs and understatement of Toll

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creditors account by similar amount.

In Reference to Note No. 8 and10 ,Regarding
(b) (b) Charging of interest on
charging of Interest @ 12% on own fund
funds deployed by the
invested on certain toll projects. In this regard
Corporation on the lines of loan
we have observed that the Corporation did not
taken from financial institutions
have any approval from Government for
is fully justified in view of full
charging such interest on own funds. Further
recovery of interest being
no such Interest was charged to such projects
effected from toll collection.
upto the year 2001-02, however during the year
Hence there is no overstatement
2002-03 & 2003-04 the Corporation has
of general reserves.
charged Rs. 291.01 lacs and Rs. 3.24 lacs
However in the year 2004-05 to
respectively as Interest on own funds. Hence we
2008-09 no funds were
cannot comment on the same. Had the interest
employed by the Corporation
on own funds not charged general reserves as
on institutionally financed
on 31.03.2009 would have been lower by
works and accordingly no
Rs.294.25 lacs and Toll Creditors account
interest has been claimed
would have been higher by similar amount.
The same is not in accordance with Accounting
Standard 9 : Revenue Recognition, as per the
said accounting standard , revenue should be
recognized only when no significant uncertainty
as to collectibility exists, and as per reasons
mentioned above, significant uncertainties are
attached with the collection of maintenance
charges and interest on own fund. Hence the
same should not be recognized.
5. A special drive was initiated
Work in Progress as on 31.03.2009 includes
5. to financially close the works,
certain works which have already been
which were physically
completed but are not adjusted from Advance
complete. Works amounting to
from client account/ Sundry Debtors amounting
Rs.2618.32 lacs were
to Rs 1384/- lacks by the company during the
financially closed in the year
year. In our opinion, when work is complete
2008-09 for closing the
then it should be adjusted from WIP. The same
remaining works vigorous
have resulted in overstatement of WIP by Rs.
efforts are being made.
1384/- lacks and overstatement of Advance
from clients by same amount
6. The efforts have been made
Loans & Advances includes Rs. 6.19 lacs
6. for recovery/ adjustment of
towards Advance to Private parties given by the
advance amounting to Rs.6.19
Mechanical Unit of the Company against which
lacs.
it has been explained that material have been
received several years ago and consumed but
bills are to be adjusted. No provisions for the
same have been made in the books of accounts.
The same has resulted in overstatement of
Loans & Advances and general reserves by
Rs.6.19 lacs

II. Observations the effect of which could
not be ascertained on Profit & Loss Account
and Balance Sheet :-

1.
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In Reference to Note No 05,Regarding demand 1. The Corporation is
from Govt. of Rajasthan to deposit interest receiving funds from the Home
earned on P.D. account pertaining to funds Department for police
received for Police Modernization. However modernization & Jail works
the Corporation has not deposited the same, since the year 2001-02.
further no provision against the interest earned Nowhere in the sanctions for
by the Corporation on funds of Rs 9310.88 lacs releasing funds to the
received from Government for various works Corporation is stated that funds
under Police Modernization scheme during past are to be kept in the non-
several years has been made. The Corporation interest bearing P.D. A/c only.
has not provided us with details of Interest It is mentioned in the sanction
earned by it in this regard hence we cannot that amount is transferred to
quantify the same. The same is not in P.D. A/c, consequently deposit
accordance with Accounting Standard 9 : were transferred to interest
Revenue Recognition. bearing P.D. A/c by the
Corporation. On pointing out by
the Home Department that
funds are to be kept in non
interest bearing P.D. A/c, the
amount available in interest
bearing P.D. A/c was
transferred to non- interest
bearing A/c on 31.01.2005.
Thereafter all the funds
received have been kept in non-
interest bearing P.D. A/c.
As regards interest due to Home
Deptt. it is submitted that in
P.D. A/c funds of other
Departments as well as surplus
funds of the Corporation were
also deposited in view of the
direction from the Finance
Department (Ways & means)
and amount was drawn from
P.D. A/c looking to the day to
day working capital
requirement of the Corporation,
therefore it is not possible to
calculate the interest earned on
Home Department deposits.

The toll collection on unviable
In Reference to Note No 8, Regarding
2. projects is not sufficient to
accounting in respect of Toll projects. The
cover even the interest &
Corporation has not provided any loss on
repayment made by the
projects, which are classified as unviable in the
Corporation to financial
opinion of the management. Actual loss to the
institutions. Due to inadequate
Corporation in this regard cannot be quantified.
toll collection the interest on
Further the Corporation has not made any
seed money is not being
provision for interest payable on Seed Money,
provided. As and when toll will
Deposit from Government and Amount
be sufficient to cover the
received from Road Development Fund other
interest on seed money the same
than a provision of Rs. 445.61 lacs (Upto
shall be provided for. Non-
31.03.2009) made in respect of seed money for
providing of interest does not
projects, which are viable in the opinion of the
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management. This has resulted into result in overstatement of profit.
overstatement of profit as well as general The works, which are viable
reserves of the Corporation. In the absence of and toll has been closed,
complete details the amount of the same is interest on seed money
unascertainable. As such we are unable to amounting to Rs. 445.61 lacs
comment on that and consequently its effect on has been credited to PWD.
profit, general reserve and current assets is
unascertainable.
3. The Corporation has not made
In Reference to Note No 11, Regarding
any provision of payment of
provision of interest on excess toll collected on
interest on excess toll collection
certain projects and shown in toll creditors
in view of absence of guidelines
under Current Liabilities whereas the
in the respective project report.
Corporation has booked income in the shape of
Similarly Corporation has not
interest @ 12% on own fund invested in viable
charged any interest on short-
projects. This has resulted into overstatement
fall in toll collection on
of profit, as well as general reserves of the
unviable projects. Hence
Corporation. In the absence of complete details
matching concept of
the amount of the same is unascertainable. As
expenditure & revenue has been
such we are unable to comments on that and
followed.
consequently its effect on profit, general
reserve and current assets in unascertainable
4. The Government has been
The Corporation has incurred extra cost as
apprised about final cost of the
compared to sanctioned cost , in the
toll projects while submitting
construction of certain bridges / road projects
toll package for consideration.
amounting to Rs. 1384/- Lacks on which
The excess expenditure has
recovery of investment is by way of Toll, the
been accounted for while
sanction for the extra expenditure incurred by
submitting the details of amount
the Corporation is yet to be given by the
refunded/ receivable from the
Government. In case of non-sanction of the
Govt. on account of all the toll
same, the Corporation may have to bear the
works.
additional cost. Actual loss to the Corporation
in this regard cannot be quantified and
consequently its effect on Profit, General
Reserve & Current Assets is unascertainable
5. In Reference to Accounting Policy No. 7-C of No Comments.
Para A, wherein the Corporation has made
change in the accounting policy of loading 9%
Centage charges on BOT Projects in earlier
years to loading of actual administrative
expenses of units and proportionate share of
Head Office overheads to these BOT Projects
in the Financial year 2006-07 to 2008-09. The
impact of this change in accounting policy on
earlier years is unascertainable.
6. While verifying the Profit / Loss on
construction works other than those awarded
purely on actual cost plus basis,, it has been
observed that :-
(i) Corporation is calculating profit / loss on i) In all the tender works
such works by deducting direct cost incurred actual quantum of work done
from total value of work done which is i.e. work certified & paid by the

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calculated on the basis of work certified by the clients and uncertified work at
client and work uncertified as per the estimate the year end has been accounted
of the management. In some units the value of for. It is being consistently
work uncertified has been taken based on followed.
financial values as per ledger, whereas in some
units figure of work uncertified is on the basis
of estimates made by concerned engineer for
which no documentary proof is available. In
this regard we have also observed that in some
units corresponding bill of sub-contractor
against work Certified / uncertified is not
booked leading to improper figure of Profit /
Loss.
ii) The Government has
(ii) In some projects the Corporation has spend
been apprised about final cost
more than the sanctioned cost and revised
of the toll projects while
estimates are pending with the client
submitting toll package for
department, profit on such projects have been
consideration. The excess
determined on the basis of revised cost which is
expenditure has been accounted
subject to approval of client department, final
for while submitting the details
sanction / non-sanction of the same may affect
of amount refunded/ receivable
the figure of Profit / Loss on concerned project.
from the Govt. on account of all
In the absence of complete details we cannot
the toll works.
quantify the same.
(iii) The Corporation is liable for maintenance
of certain roads and other construction works iii) In all the tender works
during “Defect Liability Period” which varies actual quantum of work done
from contract to contract, however the i.e. work certified & paid by the
Corporation has not made any provision for the clients and uncertified work at
for “Estimated cost of rectification and the year end has been accounted
guarantee work, including expected warranty for. It is being consistently
cost”, the same is not in accordance with the followed.
Accounting Standard 7 (Revised 2002) :
Accounting for Construction contract, the same
has resulted in overstatement of profits of the
Corporation.
(iv) Refer accounting policy No.1.2 (B) iv) The Actual expenditure
regarding recognition of Profit / Loss on incurred on maintenance is
Tendered work, the Corporation is including being charged to concerned
quantum of work done but not billed upto the work as and when payable in
end of financial year, even if not realized in the respective year. This is
subsequent year. In this regard we have being followed in respect of toll
observed there are variations between amount projects also.
of work certified as per the Tender Profit & In all the tender works actual
Loss statement submitted to us and the actual quantum of work done i.e. work
amount received from client as per the books of certified & paid by the clients
the Corporation, further few clients has and uncertified work at the year
withheld payment to the Corporation on various end has been accounted for. It is
grounds and had kept the same under the head being consistently followed.
of “Misc. Deposit”, the Corporation has not
deducted the same while calculating profit / loss
on Tender works. In the absence of complete
details we cannot verify the same.
In view of the reasons as mentioned above, we

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are unable to comment on Tender Loss / Profit
and consequently its effect on financial
statements is unascertainable.
7. Depreciation and Amortization:
(i) In Reference to Accounting Policy No. 3-B i) As per past practice
of Para A, Regarding providing of depreciation depreciation has been charged
on fixed assets at rates other than the rates as as a pert of tax planning.
prescribed in schedule XIV of the Companies
Act,1956. In absence of complete details impact
of the same on profits as well as on fixed assets
is unascertainable.
(ii) In Reference to Accounting Policy No. 3-B
of Para A, period of rights for amortization of ii) Government has not
cost of 8 B.O.T. project have been taken on the prescribed concession period in
basis of Project Report submitted to the the order for the works allotted
Government of Rajasthan. In the absence of upto 31.03.03 on BOT basis.
specific government sanction for concession Therefore, amortisation cost of
period we cannot verify the same and BOT projects have been taken
consequently its effect on profit and fixed assets on the basis of project report
is unascertainable. submitted to the Government of
Rajasthan.

8. In Reference to Note No. 14, Regarding non- Matter is under settlement with
reconciliation of amount of loans from financial HUDCO through Government
institutions, in this regard we have observed of Rajasthan.
that:-
During the financial year 2004-05, the
Company has made prepayment of all HUDCO
loans as per its books of accounts and the
balance of HUDCO as on 31.03.2006 is Nil as
per books of the Corporation. However as per
books of accounts of HUDCO, the Company is
liable to pay Rs. 234.00 lacks.
During the current year, Matter is under
settlement in view of latest developments as per
directions of Finance Department, Government
of Rajasthan, vide letter No. F-
11/29/FD/Budget/2008 dated 06/07.2009.

9. Letters have been written to all
In Reference to Note No. 19, Company has not
the clients to confirm the
followed any procedures to obtained
outstanding balance.
confirmation for their balance featured in a
Amount deducted by clients on
particular day in the books of accounts and not
account of liquidated damages
followed any procedure for reconciliation of
has been debited for concerned
Sundry Debtors, Creditors and other liabilities,
works. As and when L.D.
Loans and Advances, Toll Debtors, Advances
amount is refunded by client, it
from Clients whose final confirmation /
reconciliation may effect our disclosure. The is credited back to the work.
above includes certain old balances lying since
long time for which time bound program should
be made for provisioning and writing it off in

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the phased manner.
Further, any deductions made by certain clients
out of bills of various works executed by the
Company, the Company has not provided any
loss against the deductions which are not
accepted by the Company. Complete
information in respect of deductions made by
various clients is not available and actual
liability of Corporation in this regard cannot be
ascertained.
Hence, we cannot comment regarding adequacy
of provision for doubtful debts and advances.
10. Pending actuarial leave
In Reference to Note No. 4,and Accounting
Policy No. 5 of para A, Wherein the Company encashment valuation from LIC
no further provision has been
has not followed AS-15 “Accounting for
Retirement Benefits” issued by the Institute of made in the accounts.
Chartered Accountants of India in respect of
leave encashment benefit. The Company had
made a cumulative provision for Rs.45.00 lacks
up to 31.03.2000 towards leave encashment
liability however no provision has been made in
the books after 31.03.2000 and actual liability
in this regards is not ascertainable
11. Total demand of Rs. 860.53 lacs
In Reference to Note No 1 (c), Regarding
has been reduced to Rs. 253.00
attachment of the bank accounts of the
lacs on remand back of the case.
Company by the Commissioner, Employee
Appeal against order of CPF
Provident Fund Organization and withdrawing
Commissioner is pending
Rs. 133.61 lacs against the total demand of Rs.
before EPF Tribunal.
253.81 lacs pertaining to PF dues for the period
June 1982 to February 1993.The Company has
classified the same under the head of Current
Assets and no provision has been made against
the same.
Further the Company has not made any
provision for the liability of PF regarding
contractors worker for the period March 1993
to March 2009 The Corporation has filed a
appeal against the order of Commissioner, EPF
organization and the matter is sub-judice, hence
we cannot comment on the same.
All the clients who have
In Reference to No. 13, Regarding dispute on
12. disputed the admissibility of the
account of rate difference in centage charges
centage charges have been
amounting to Rs. 350 lacs .Out of the above
requested for release of our due
amount Rs. 63.10 lacs were charged to Profit &
payments in vie of
Loss account in the year 2000-01 and Rs.217.03
Governments clarification dated
lacs were recovered in the year 2004-05 out of
02.08.2003.
such amount however no provision has been
made for the balance centage charges of
Rs.69.87 lacs, as the Company is hopeful of its
recovery in view of Govt. of Rajasthan‟s order
No. F-8(27)PW/79/967 dated 02.08.2003 giving

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consent for applicability of rate of centage as
was applicable on the date on which work order
was placed. However we cannot comment on
recoverability of the same.
13. The Company has not shown Total Turnover of It is already exhibited in
the Company and direct Contract Expenses in Schedule 'K' which is a part of
the Profit and Loss account .Which is violation accounts.
of provisions of Schedule VI of the Companies
Act, 1956
14. An amount of Rs.275.55 lacs
In Reference to Note No. 1.a, Regarding
has already been shown as
contingent liabilities in respect of “Claims of
contingent liability in notes of
Workmen / Contractors / Private Party‟s
accounts on account of
pending adjudication / Appeal – Amount
arbitration awards. In cases
unascertainable”. In this regard it has been
other than arbitration it is not
observed that the Corporation does not have a
possible to ascertain the liability
system to Quantify Contingent liabilities in
on account of pending
respect of claims of the parties mentioned
litigation.
above; hence the amount could not be
ascertained leading to non-disclosure of amount
of contingent liabilities in this regard. In the
absence of complete details we cannot
comment on the same, further the same is not in
accordance with A.S. 29: Provisions,
Contingent Liabilities and Contingent Assets.
15. During the year 2004-05 the
The Company has debited differential sales tax
Corporation has credited Rs.
pertaining to cement purchased during the year
180.69 lacs towards liability of
1997-98 to 2001-02 to the accounts of
differential sales tax pertaining
concerned work on which such cement was
to Cement purchased during the
used in earlier years. In respect of cement used
year 1997-98 to 2001-02 the
in works of cost plus works, the Company has
same has been debited to the
also claimed centage charges on such amount.
accounts of concerned works in
In this regard it has been observed that most of
which such cement was used in
these works are already closed and recovery of
earlier years.
this amount from clients is doubtful and the
Company has not provided us with acceptance
of this liability from concerned clients, hence
we cannot comment on recoverability of the
same.
16. Relevant orders of allotment of
In absence of details and Title Deeds of
land by Revenue Department,
Leasehold Land, we are unable to comment on
Government of Rajasthan are
correctness of value of leasehold land and
available in the record.
liability, if any, arises on account of that.
17. Bank Balance of following units are subject to Concerned units have been
directed to obtain confirmation
confirmation/ reconciliation :-
of old Bank Balances.
S. Name of Unit Name of Amount Compliance shall be reported to
No. Bank in Rs. the Board very shortly.

1 Alwar Detail nor 250356/-
available

18. Outstanding Liabilities Amounting Concerned units have been
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Rs.6958831/- at various unit is outstanding directed to furnish the details of
since long in respect of which no detail outstanding liabilities.
available with the company Compliance shall be reported
shortly.

19. Company has fully discharged payment of No comments.
arrear salary payable due to recommendation of
sixty pay commission for the period from
01/01/07 to 31/03/08 and derecognize of excess
provision of Rs 1.92 lacks out of Rs 365.70
lacks in the year in the Profit and Loss Account.
This was made during the last year without
inadequate detailed calculation. Hence
Company profit is over stated up to Rs 1.92
lacks for the year.

Annexure- II (Referred to in Paragraph (3) of
our report, of even date on the accounts for the
year ended As on 31st March, 2009)
(i) (a) The company has maintained proper (a) No comments.
records of fixed assets excluding shuttering
material.
(b) Physical verification of the fixed assets (b) Detailed guidelines are
was not conducted by the management for past being followed the observation
several years. However during the month of under rules.
August 2004 the company has started the
process of physical verification of fixed assets
and information has been called from various
units regarding description and quantity of the
fixed assets lying with them. In our opinion the
procedure and interval for verification of fixed
assets is grossly deficient looking to the size of
the corporation. As per the lists of fixed assets
received from various units – certain items of
fixed assets have been marked as
“Unserviceable”, however the corporation has
not made any adjustment in values due to such
unserviceable fixed assets.

(ii) (a) The inventories have been physically (a) No comments.
verified during the year by the management. In
our opinion, the frequency of verification is
reasonable

(b) The procedure followed for physical (b) Detailed guidelines have
verification of inventories is not reasonable been issued to all the units to
and are inadequate in relation to the size of follow the observations under
the company and nature of its business. The rules. The physical verification

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actual measurements of various items of stock is being conducted
are not taken at the time of physical departmentally by deputing an
verification and quantities are reported to have Asstt. Resident Engineer and
been physically verified as per book records AAO/ Accountant of the other
only. The instructions issued by the unit to conduct physical
management with regard to physical verification work to check
verification are also not being properly measure, count, weightment
followed. actual measurements. In most of
the cases like steels, sand, grit
etc. is not possible to weight.
The cost of weightment will be
too heavy. Physical verification
report submitted by the
concerned committee are sent
for verifications to the unit
offices and necessary action if
any is taken.

(c) In our opinion and according to the (c) No comments.
information and explanation given to us and on
the basis of our examination of the records of
inventory, the company is maintaining proper
records of inventory. However no material
discrepancies were noticed on physical
verification of inventories.

(iii) (a) According to the Information & (a) No comments.
Explanation given to us, the company has not
granted or taken any loan to / from the parties
listed in the register maintained under Section
301 of the Companies Act, 1956.

(b) In view of clause (iii)(a) above, Clause (b) No comments.
(iii)(b),(iii)(c) & (iii)(d) are not applicable to the
company.

(iv) In our opinion and according to the information Noted for compliance.
and explanations given to us, there are adequate
internal control procedures commensurate with
size of the company and the nature of its
business for the purchase of inventory and fixed
assets and for the sale of goods. We have
neither come across nor have we been informed
of any instances of major weakness in the
aforesaid internal control procedures and
continuing failure on the part of the
management to take corrective action in this
regard.

(v) (a) According to the information and explanation No Comments.
given to us, we are of the opinion that the
company has not entered into any transaction
that need to be entered in the register
maintained under Section 301 of the Companies

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Act, 1956.

(b) In view of clause V (a) above, the clause V
(b) is not applicable.

(vi) The company has not accepted any deposits No Comments.
from the public within the meaning of Section
58A & 58AA or any other relevant provision of
the Companies Act 1956. No order has been
passed by the Company Law Board or Reserve
Bank of India.

(vii) In our opinion, the company’s internal audit The scope of work of internal
system is inadequate looking to the size and audit has been prepared in
nature of its business. The scope of work given to detail. Departmental staff has
Internal Auditor and its follow up needs to be conducted internal audit during
strengthened. the year.
viii According to the information & explanation No Comments.
given to us the Central Government has not
prescribed the maintenance of cost records under
Section 209 (1) (d) of the Companies Act, 1956
in respect of the products of the corporation.
xi (a) To the best of our knowledge and No Comments.
information obtained and verifications made, we
report that the company is generally regular in
depositing with appropriate authorities
undisputed statutory dues including provident
fund, investor education protection fund,
employees' state insurance, income tax, sales tax,
wealth tax, service tax, custom duty, excise duty,
cess and other material statutory dues applicable
to it. Further according to the information &
explanation given to us, no undisputed amounts
payable in respect of aforesaid dues were
outstanding as at 31st March 2008 for a period of
more than six months from the date they become
payable .

b) According to the information and
explanations given to us, and the records of the
Company, the details of aforesaid statutory dues
as at 31.03.2009 which have not been deposited
with the appropriate authorities on account of
any dispute, are given below :
Nature of Nature of Amount( Period to Forum
the Dues Rs. In which the where the
Statute lacs) amount dispute is
relates pending
Income 80 IA, 110.41 2005-06 CIT
Tax GF, PPE (Appeal)
and SRF
Income Prior 15.54 2004-05 CIT
Tax period (Appeal)
Exp.
Income P.F. 13.02 2001-02 ITAT
Tax

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Income 80 IA 2.26 2002-03 High
Tax Court
State Addition 761.31 1998-99 D.C.
Sales Tax al Tax (Appeal)
Act Levies Raj. Tax
Board
State Addition 139.27 2004-05 D.C.
Sales Tax al Tax (Appeal)
Act Levies
State Addition 23.46 2005-06 D.C.
Sales Tax al Tax (Appeal)
Act Levies

.
x The company has no accumulated losses at the No Comments.
end of the financial year and it has not incurred
any cash losses in the current and immediately
preceding financial year.

xi In our opinion and according to the information No Comments.
and explanations given to us, the company has
not defaulted in repayment of dues to a
financial institution, bank or debenture holders
except loan of HUDCO as referred to in Para 15
of Part II of Annexure II of our report is under
reconciliation, hence we cannot comment on
default status of the same.

xii According to the information and explanation No Comments.
given to us, company has not granted loans and
advances on the basis of security by way of
pledge of shares, debentures and other
securities.

xiii In our opinion, the company is not a chit fund No Comments.
or a nidhi/ mutual benefit fund/ society.
Therefore. the provisions of clause 4(xiii) of the
Companies (Auditor's Report) Order, 2003 are
not applicable to the company.
xiv In our opinion, during the year under audit, the No Comments.
company did not engage in dealing or trading in
shares, securities, debentures. Accordingly, the
provisions of clause 4(xiv) of the Companies
(Auditor's Report) Order, 2003 are not
applicable to the company.
xv According to the information and explanation No Comments.
given to us, the company has not given any
guarantee for loan taken by others from bank or
financial institution.
xvi To the best of our knowledge and belief and No Comments.
according to the information & explanation
given to us, term loans availed by the company
were, prima facie, applied by the company for
the purpose for which the loans were obtained.
xvii According to the information and explanations No Comments.
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given to us and on an overall examination of the
balance sheet of the company, we report that the
no funds raised on short-term basis have been
used for long-term investment.
xvii According to the information and explanations No Comments.
i given to us, the company has not made
preferential allotment of shares to parties and
companies covered in the register maintained
under section 301 of the Companies Act, 1956.
xix According to the information and explanations No Comments.
given to us and records examined by us, the
company has not issued any debentures during
the year.
xx According to the information and explanation No Comments.
given to us the company has not raised any
money from Public Issue during the year hence
the question of disclosure and verification of
end use of such money does not arise.
xxi According to the information and explanations No Comments.
given to us, no fraud on or by the company has
been noticed or reported during the course of
our audit.

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