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A B Infrabuild Ltd.

BSE: 535343 Sector: Infrastructure
NSE: ABINFRA ISIN Code: INE00YB01017
BSE 05:30 | 01 Jan A B Infrabuild Ltd
NSE 05:30 | 01 Jan A B Infrabuild Ltd

A B Infrabuild Ltd. (ABINFRA) - Auditors Report

Company auditors report

TO THE MEMBERS OF A B INFRABUILD LIMITED

Report on the Audit of the Financial Statements

Opinion

We have audited the accompanying financial statements of A B Infrabuild Limited ("theCompany") which comprises the Balance Sheet as at 31st March 2020 theStatement of Profit and Loss (including the statement of other comprehensive income) thestatement of changes in equity and the statement of cash flows for the year then ended onthe date and notes to the financial statements including a summary of significantaccounting policies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by theCompanies Act 2013 ('the Act') in the manner so required and give a true and fair view inconformity with the Indian Accounting Standards prescribed under section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended ("IndAS") and other accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2020 the profit and totalcomprehensive income changes in equity and its cash flows for the year ended on thatdate.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the Act. Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theICAI's Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements for the financial year ended March31 2020. These matters were addressed in the context of our audit of the financialstatements as a whole and in forming our opinion thereon and we do not provide a separateopinion on these matters. We have determined the matters described below to be the keyaudit matters to be communicated in our report.

We have fulfilled the responsibilities described in the Auditor's responsibilities forthe audit of the financial statements section of our report including in relation tothese matters. Accordingly our audit included the performance of procedures designed torespond to our assessment of the risks of material misstatement of the financialstatements. The results of our audit procedures including the procedures performed toaddress the matters below provide the basis for our opinion on the accompanying financialstatements.

Key Audit Matters Auditor's Response
1. Adoption of IND AS 115-Revnue from Contracts with Customers as described in note 3.12 of the financial statements. As a part of our audit procedures our procedures included the following:-
The company has adopted the IND AS 115- Revenue from contracts with customers mandatory for reporting periods beginning on or after 1st April 2018. We have read the accounting policy for revenue recognition and assessed the compliance of the policy in terms of the principal enunciated under IND AS 115.
Application of IND AS 115 including selection of transition method involves significant judgment in determining when control of goods or services underlying the performance obligation is transferred to the customer and transition method to be applied. We obtained and understood the revenue recognition process including determining the point of transfer of control and completion of performance obligation.
We performed the test of details on a sample basis and examined the underlying customer contracts.
As the revenue recognition due to the significance of the balance to the financial statements as a whole we regard this as a key audit matter. We examined the disclosure made by management in compliance with the requirements with IND AS 115.
Conclusion:
2. Revenue recognition Accuracy in term of Value and Quantity Our procedures did not find any material exceptions.
We assessed the Company's process of recording the revenue.
Our Audit approach consisted testing of operative effectiveness of internal controls and substantive testing as under:
1. Evaluate and Test the internal control process implemented in the system.
2. Sample selection on the basis of internal control system and using random selection technique.
3. Through Verification of sample with stock records and other documents to test the accuracy of output with the transaction recorded in the system.

Information other than the Financial Statements and Auditor's Report thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the management discussion & analysis and director's reportincluded in the annual report but does not include the financial statements and ourauditor's report thereon. The above information is expected to be made available to usafter the date of this auditor's report.

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

In connection with our audit of the financial statements our responsibility is to readthe other information identified above when it becomes available and in doing soconsider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained in the audit or otherwise appears to be materiallymisstated.

When we read the above other information if we conclude that there is a materialmisstatement therein we are required to communicate the matter to those charged withgovernance.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Act with respect to the preparation and presentation of the financialstatements that give a true and fair view of the financial position financial performanceincluding other comprehensive income cash flows and changes in equity of the Company inaccordance with the accounting principles generally accepted in India including theIndian Accounting Standards prescribed under Section 133 of the Act read with relevantrules issued there under. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.

Those Board of Directors are also responsible for overseeing the company's financialreporting process.

Auditor's Responsibility for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial resultswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under Section 143(3)(i)of the Act we are also responsible for expressing our opinion on whether the Company hasadequate internal financial controls with reference to financial statements in place andthe operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by Board of Directors.

• Conclude on the appropriateness of the Board of Directors use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial results or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.

• Evaluate the overall presentation structure and content of the financialresults including the disclosures and whether the financial results represent theunderlying transactions and events in a manner that achieves fair presentation.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143 (3) of the Act we report that:

(a) we have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purposes of our audit of the aforesaidfinancial statements;

(b) in our opinion proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books;

(c) the balance sheet the statement of profit and loss including other comprehensiveincome statement of changes in equity and the statement of cash flows dealt with by thisReport are in agreement with the books of account;

(d) in our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014;

(e) on the basis of the written representations received from the directors as on 31stMarch 2020 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2020 from being appointed as a director in termsof Section 164 (2) of the Act;

(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure A". Our report expresses an unmodified opinion onthe adequacy and operating effectiveness of the Company's internal financial controls overfinancial reporting;

(g) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended in our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of section 197 of the Act;

(h) with respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:

(i) the Company has pending litigations and disclosure in relation to the same has beenmade in the financial statement;

(ii) the Company does not see any foreseeable losses on long-term contracts as on thebalance sheet date and the Company has not entered into any derivative contractstherefore no provision has been made in relation to the same;

(iii) the Company has not declared any dividends either in the current year or duringany of the previous years and therefore transferring of the amounts in the InvestorEducation and Protection Fund by the Company does not arise.

2. As required by the Companies (Auditor's Report) Order 2016 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure "B" a statement on the matters specified in theparagraph 3 and 4 of the Order.

For BHUWANIA & AGRAWAL ASSOCIATES
(Chartered Accountants)
(Firm Registration no. 101483W)
Shubham Bhuwania
(Partner)
Membership No.: 171789
UDIN: 20171789AAA ACF2909
Date: 30th July 2020
Place: Mumbai

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1(f) under 'Report on Other Legal and RegulatoryRequirements' of our report of even date)

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

We have audited the internal financial controls over financial reporting of A BInfrabuild Limited ("the Company") as of 31st March 2020 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI). These responsibilitiesinclude the design implementation and maintenance of adequate internal financial controlsthat were operating effectively for ensuring the orderly and efficient conduct of itsbusiness including adherence to company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") issued by the Institute of Chartered Accountants of Indiaand the Standards on Auditing prescribed under Section 143(10) of the Companies Act 2013to the extent applicable to an audit of internal financial controls. Those Standards andthe Guidance Note require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether adequate internal financialcontrols over financial reporting was established and maintained and if such controlsoperated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at 31st March 2020 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For BHUWANIA & AGRAWAL ASSOCIATES

(Chartered Accountants)

(Firm Registration no. 101483W)

Shubham Bhuwania

(Partner)

Membership No.: 171789

UDIN: 20171789AAAACF2909

Date: 30th July 2020

Place: Mumbai

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2 under 'Report on Other Legal and Regulatory Requirements'of our report of even date)

Report on the statement on the matters specified in the paragraph 3 and 4 of theCompanies (Auditor's Report) Order 2016:

(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

(b) The Company has a programme of physical verification of its fixed assets by whichfixed assets are verified. In accordance with this programme fixed assets were verifiedduring the year and no material discrepancies were noticed on such verification. In ouropinion the periodicity of physical verification is reasonable having regard to the sizeof the Company and the nature of its assets.

(c) According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

(ii) As per the information furnished the inventories have been physically verifiedduring the year by the management. In our opinion having regard to the nature andlocation of stocks the frequency of the physical verification is reasonable and no suchmajor discrepancies found during verification of inventories.

(iii) According to the information and explanations given to us the Company has notgranted any loans secured or unsecured to companies firms or other parties covered inthe register maintained under section 189 of the Companies Act and thus paragraph 3(iii)of the Order is not applicable to the company for the year under review.

(iv) According to the information and explanations given to us the Company had notgranted any loans or provided any guarantees under Sec 185 and neither had any investmentsduring the year and therefore compliance in respect to provisions of Section 185 and 186of the Companies Act 2013 may not be applicable to the company for the year under review.

(v) The Company did not accept any deposits during the year and therefore compliancewith the directives issued by the Reserve Bank of India and the provisions of sections 73to 76 or any other relevant provisions of the Companies Act 2013 and the rules framedthereunder may not be applicable to the Company.

(vi) The Central Government has not prescribed maintenance of the cost records undersection 148 of the Companies Act 2013 in respect of activity of the company. Thereforethe provision of clause (vi) of paragraph 3 (iii) of the Order is not applicable to thecompany for the year under review.

(vii) a) According to the information and explanations given to us and on the basis ofour examination of the records of the Company the Company has been found to be regular indepositing undisputed statutory dues such as provident fund ESIC income tax customduty GST cess and other statutory dues as applicable except in case of TDS amounting toRs. 14.04 Lakhs and VAT of Rs. 36.27 Lakhs which is outstanding for a period of more thansix months from the date they became payable.

b) According to the records of the Company and information and explanations given to usthere are no dues of income tax customs duty GST and cess which has not been depositedon account of disputes except for the dues of Sales Tax which have not been deposited on31st March 2020 on account of dispute and detail is as follows:

Name of Statue Nature of dues Amount Period to which the amount relates Forum where dispute is pending
The Maharashtra Value Added Tax Act 2002 Sales Tax Rs. 50.27 Lakhs F.Y 2014-15 Deputy Commissioner of Sales tax.
The Maharashtra Value Added Tax Act 2002 Sales Tax Rs. 253.24 Lakhs F.Y 2015-16 Deputy Commissioner of Sales tax.

(viii) As per the information and explanations given to us and based on our auditthe Company has not defaulted in repayment of loans or borrowings to financialinstitutions banks and government and dues to debenture holders.

(ix) The Company has not raised any money by way of initial public offer or byfurther public offer (including debt instruments). Further in our opinion and according tothe information and the explanations given to us the term loans availed by the Companywere prima facie applied by the Company during the year for the purposes for which theloans were obtained.

(x) According to the information and explanations given to us no material fraud byor on the Company by its officers or employees has been noticed or reported during thecourse of our audit.

(xi) The managerial remuneration under Section 197 is not applicable to privatelimited company and therefore paragraph 3(xi) of the Order is not applicable to thecompany.

(xii) In our opinion and according to the information and explanations given to usthe Company is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable to the company for the year under review.

(xiii) In our opinion and according to the information and the explanations givento us the transactions with the related parties were in compliance with Sec 177 and 188of the Companies Act and the details of the same have been disclosed in Note 38 of theFinancial Statements in conformity with Ind AS 24.

(xiv) The company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review undersection 42 of the Companies Act 2013 and therefore paragraph 3(xiv) of the Order is notapplicable to the company for the year under review.

(xv) The Company has not entered into any non-cash transactions with the directorsor persons connected with him and therefore paragraph 3(xv) of the Order is not applicableto the company for the year under review.

(xvi) The Company is not required to be registered under section 45-IA of theReserve Bank of India Act 1934 and therefore paragraph 3(xvi) of the Order is notapplicable to the company for the year under review.

For BHUWANIA & AGRAWAL ASSOCIATES

(Chartered Accountants)

(Firm Registration no. 101483W)

Shubham Bhuwania

(Partner)

Membership No.: 171789

UDIN: 20171789AAAACF2909

Date: 30th July 2020

Place: Mumbai

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