Docstoc

RAJASTHAN STATE ROAD DEVELOPMENT AND

Document Sample
RAJASTHAN STATE ROAD DEVELOPMENT AND Powered By Docstoc
					                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

    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
    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

4



8



2




    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
            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 :-


    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
         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




    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
    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.

0




    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
                                       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




    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
                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)/ 7821-34                                                           Date : 07/09/09

           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.

8

                                                                                                   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.
    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
    Thanking you,
    Yours faithfully,

4

    (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


4



8



2




    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
             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 : 07/09/09

    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 :-


    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
         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




    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
    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.

0




    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
                                       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




    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
    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



    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
    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

    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
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



C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
      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
    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
    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


    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
    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


4



8



2



6



0



4



8



2




    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
    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.




    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
       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
    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
    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.




    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
        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
    .



    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
    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.

    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
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.




    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
       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

    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
       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




    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
    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




    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
              (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


4



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 :


6



0

        C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
                                        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.)




    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
    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 :



4




    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
    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.



    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
          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.




    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
    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.




    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
    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.

    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
    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.



    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
    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




    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
                                         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.

           (c) During the year, the company has not disposed off any substantial / major part of
4              the 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.




    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
    (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


    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
    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.




    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
    (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



8



2



6



0



4



8



2

    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
            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

    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
           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

     C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
          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

    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
                 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.

    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
    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




    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
    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.

    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
    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:

0



4



8



2



6



0



4



8


    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
                    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

    C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
      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,

C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
      (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
C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
      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

C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
      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.
C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
      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
C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
      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

C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
      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

C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
      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

C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
      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

C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
      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
C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
       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.

       (c)        During the year, the company has not (c)         No comments.
       disposed off any substantial / major part of the
       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

C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
        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

C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
       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

C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
            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.
C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc
       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.




C:\Docstoc\Working\pdf\b73c300b-b5ff-43e6-9e7f-ccdc9049eed6.doc

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:44
posted:10/11/2011
language:English
pages:63