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B.L.Kashyap & Sons Ltd.

BSE: 532719 Sector: Infrastructure
NSE: BLKASHYAP ISIN Code: INE350H01032
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VOLUME 12829
52-Week high 33.00
52-Week low 16.85
P/E 14.20
Mkt Cap.(Rs cr) 538
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 23.30
CLOSE 24.25
VOLUME 12829
52-Week high 33.00
52-Week low 16.85
P/E 14.20
Mkt Cap.(Rs cr) 538
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

B.L.Kashyap & Sons Ltd. (BLKASHYAP) - Auditors Report

Company auditors report

TO THE MEMBERS OF B. L. KASHYAP AND SONS LIMITED Report on the Audit ofthe Standalone Financial Statements Opinion

We have audited the accompanying standalone financial statements of B.L. Kashyap and Sons Limited ("the Company") which comprise the Balance Sheet asat March 31 2021 the Statement of Profit and Loss (including Other ComprehensiveIncome) the Statement of Changes in Equity and the Statement of Cash Flows for the yearended on that date and a summary of the significant accounting policies and otherexplanatory information (hereinafter referred to as "the standalone financialstatements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 31 2021the profit and other comprehensive income changes in equity and its cash flows for theyear ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements inaccordance with the Standards on Auditing specified under section 143(10) of the Act(SAs). Our responsibilities under those Standards are further described in the Auditor'sResponsibilities for the Audit of the Standalone Financial Statements section of ourreport. We are independent of the Company in accordance with the Code of Ethics issued bythe Institute of Chartered Accountants of India (ICAI) together with the independencerequirements that are relevant to our audit of the standalone financial statements underthe provisions of the Act and the Rules made thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence we have obtained is sufficient and appropriateto provide a basis for our audit opinion on the standalone financial statements.

Emphasis of Matter

Without qualifying our opinion we draw attention to the followingmatters;

(a) Note no. 27 to the standalone financial statements in which theCompany described the uncertainties arising from Covid-19 pandemic.

(b) Note No 24 to the standalone financial statements regarding claimsagainst the Company not acknowledged as debts amounting Rs. 45.31 Crores in respect ofdisputed statutory dues.

(c) Note No. 24 - The company has paid entire principal amount as on31st march 2021 and further made a request to canara bank ( erstwhile syndicate bank ) forwaiver of interest. the Amount is indeterminable.

(d) Note No. 24 - The Company has litigation with Provident Fundauthorities. It has deposited Rs. 15 Crores. The PF Department has appealed against thejudgment passed in favour of the Company. The liability in this respect is indeterminable.

(e) Note no. 5A regarding provision of losses for diminution in thevalue of Investments in the Subsidiary Companies.

(f) Note no. 2 The Company has categorised Current Assets/ Liabilitiesas those receivable/ payable with in the operating cycle Thus non-moving outstandingsbeyond operating cycle period of 12 months have been classified as 'Non current' even ifthese are receivable/ payable on demand or are overdue.

Other Matters

Due to the Covid-19 pandemic and the lockdown and other restrictionsimposed by the Government and local administration the audit processes carried out postlockdown were based on the remote access and evidence shared digitally.

Our opinion is not modified in respect of this matter.

Key Audit Matters

Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone financial statements of thecurrent period. These matters were addressed in the context of our audit of the standalonefinancial statements as a whole and in forming our opinion thereon and we do not providea separate opinion on these matters. We have determined the matters described below to bethe key audit matters to be communicated in our report.

Sr. No. Key Audit Matter Auditor's Response
1 Recognition measurement and disclosures of revenue from Construction Job Work Our audit procedures included an evaluation of the significant judgments made by management amongst others based on an examination of the projects' documentation status of construction contracts in hand and past practices and reasonableness of the revenue booked.
2 Non Current Investments The Company has invested in capital of certain companies including subsidiaries. It has also extended unsecured loans has customer/ vendor relationship with them. A part of these investments has been impaired based on management's estimates about their abilities to sustain their running business activities despite negative net worth. We are also Auditors of one of these subsidiaries and have expressed our concern about their sustainability of operations. We have reviewed and discussed the probability of recoupment of such receivables as well as investments. Based on our review and discussions the management has evaluated the uncertainties involved and agreed to impair investments and receivables on estimated basis.
3 Work- in-Progress (WIP) The company has valued its WIP stock at cost as at 31st March 2021 which is consistent with past practices . The Company as a policy apportions partially/ fully regional / corporate offices expenses over various active projects on the basis of projected revenue of the respective project. The percentage of expense to be apportioned is based on estimates.

Information Other than the Standalone Financial Statements andAuditor's Report Thereon

The Company's Board of Directors is responsible for the preparation ofthe other information. The other information comprises the information included in theManagement Discussion and Analysis Board's Report including Annexures to Board's ReportBusiness Responsibility Report Corporate Governance and Shareholder's Information butdoes not include the standalone financial statements and our auditor's report thereon.

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

In connection with our audit of the standalone financial statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the standalone financial statements orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information we are required to report that fact. Wehave nothing to report in this regard.

Management's Responsibility for the Standalone Financial Statements

The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these standalone financialstatements that give a true and fair view of the financial position financialperformance total comprehensive income changes in equity and cash flows of the Companyin accordance with the Ind AS and other accounting principles generally accepted in India.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalonefinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the standalone financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.

The Board of Directors are responsible for overseeing the Company'sfinancial reporting process.

Auditor's Responsibilities for the Audit of the Standalone FinancialStatements

Our objectives are to obtain reasonable assurance about whether thestandalone financial statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these standalone financial statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.

• Obtain an understanding of internal financial controls relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's 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 standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditions maycause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of thestandalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation.

Materiality is the magnitude of misstatements in the standalonefinancial statements that individually or in aggregate makes it probable that theeconomic decisions of a reasonably knowledgeable user of the financial statements may beinfluenced. We consider quantitative materiality and qualitative factors in

(i) planning the scope of our audit work and in evaluating the resultsof our work; and

(ii) to evaluate the effect of any identified misstatements in thefinancial statements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the standalonefinancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludes publicdisclosure about the matter or when in extremely rare circumstances we determine that amatter should not be communicated in our report because the adverse consequences of doingso would reasonably be expected to outweigh the public interest benefits of suchcommunication.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act based on our audit wereport that:

a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

b) In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss including OtherComprehensive Income Statement of Changes in Equity and the Statement of Cash Flow dealtwith by this Report are in agreement with the relevant books of account.

d) In our opinion the aforesaid standalone financial statements complywith the Ind AS 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 thedirectors as on 31 March 2021 taken on record by the Board of Directors none of thedirectors is disqualified as on 31 March 2021 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 overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure A". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internal financialcontrols over financial reporting.

g) With respect to the other matters to be included in the Auditor'sReport in accordance with the requirements of section 197(16) of the Act as amended:

h) In our opinion and to the best of our information and according tothe explanations given to us the remuneration paid by the Company to its directors duringthe year is in accordance with the provisions of section 197 of the Act.

i) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended in our opinion and to the best of our information and according to theexplanations given to us:

i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone financial statements.

ii. The Company has made provision as required under the applicablelaw or accounting standards for material foreseeable losses if any on long-termcontracts including derivative contracts.

iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.

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

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 1(f) under the heading of 'Report on OtherLegal and Regulatory Requirements' section of our report of even date to the Members ofB.L. Kashyap and Sons Limited on the Standalone financial Statement for the year ended 31stMarch 2021)

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

We have audited the internal financial controls over financialreporting of B.L. KASHYAP AND SONS LIMITED ("the Company") as of March31 2021 in conjunction with our audit of the standalone financial statements of theCompany for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishingand maintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalFinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to respective company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the ac counting records and the timely preparation ofreliable Financial information as required under the Companies Ac t 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal Financialcontrols over Financial reporting of the Company based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India and the Standards on Auditing prescribed under Section 143(10) of theCompanies Ac t 2013 to the extent applicable to an audit of internal Financial controls.Those Standards and the Guidance Note require that we comply with ethic al requirementsand plan and perform the audit to obtain reasonable assurance about whether adequateinternal Financial controls over Financial reporting was established and maintained and ifsuch controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal Financial controls system over Financial reporting and theiroperating effectiveness. Our audit of internal Financial controls over Financial reportingincluded obtaining an understanding of internal Financial controls over Financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material misstatement of the Financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the internal Financial controlssystem over Financial reporting of the Company.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal Financial control over Financial reporting is aprocess designed to provide reasonable assurance regarding the reliability of Financialreporting and the preparation of Financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal Financial control overFinancial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of thecompany;

(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of Financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the company's assets thatcould have a material effect on the Financial statements.

Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal Financial controls overFinancial reporting including the possibility of collusion or improper managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal Financial controls overFinancial reporting to future periods are subject to the risk that the internal Financialcontrol over Financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

Opinion

The Company has appointed an independent Chartered Accountants firm tocarry out the Internal Audit of certain project sites only. In our opinion the coverageof locations etc. needs to be improved.

Subject to above In our opinion to the best of our information andaccording to the explanations given to us the Company has in all material respects anadequate internal Financial controls system over Financial reporting and such internalFinancial controls over Financial reporting were operating effectively as at March 312021 based on the internal control over Financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

ANNEXURE 'B' TO THE INDEPENDENT AUDITOR'S REPORT

The Annexure B referred to in paragraph 2 under the heading of"Report on Other Legal and Regulatory Requirements" section in our Report ofeven date to the members of B.L. Kashyap & Sons Limited on the Standalonefinancial Statement for the year ended 31 March 2021.

(i) (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets on the basis ofinformation available.

(b) The Company has a regular programme of physical verification of itsfixed assets which in our opinion is reasonable having regard to the size of the companyand nature of its assets. Pursuant to such programme Certain property plant &equipment have been physically verified by the management during the year. No materialdiscrepancies were noticed on such verification.

(ii) (a) As explained to us the stores and material at different siteshave been physically verified by the management during the year.

(b) In our opinion and according to information and explanations givento us the Procedures of physical verification of stores and material followed by theManagement are reasonable and adequate in relation to the size of the Company and thenature of its business.

(c) In our opinion and according to information and explanations givento us the Company has maintained proper records of its inventories. Discrepancies noticedon physical verification of inventories were not material and have been properly dealtwith in the books of accounts.

(iii) The Company has granted unsecured loans to the companiescovered in the register maintained under section 189 of the Companies Act.

(a) The terms and conditions of the grant of loan are not prejudicialto the company's interest.

(b) The receipt of principal amount and interest are as per agreedterms and conditions.

(c) As per agreed terms and conditions there are no overdue amounts.

(iv) The Company has complied with provisions of section 185 and 186 ofthe Companies Act in respect of loans investments guarantees and security.

(v) The Company has not accepted any deposits from the public andconsequently the directives issued by the Reserve Bank of India the provisions ofSections 73 to 76 or any other relevant provisions of the Companies Act and the rulesframed there under are not applicable.

(vi) The Central Government has specified maintenance of cost recordu/s. 148(1) of the Companies Act 2013.As per records produced and explanations given tous the company has made and maintained cost records and accounts.

(vii) (a) According to the information and explanations given to usand on the basis of our examination of the books of account the Company has followingundisputed statutory dues outstanding for more than six months.

Nature of dues Undisputed Amount Arrear more than Six Month (Rs.)
EPF 35983424/-
Interest and Others on EPF 43822476/-
E.S.I.C. 18763058/-
Labour Cess 559336/-

(b) According to the information and explanations given to us thereare disputed amount payable towards Income Tax Service Tax Central Excise and Valuedadded tax as on the date of Balance Sheet in the following cases: -

Name of the Statute Nature of Dues Period to which the amounts relates Disputed Amount Not Deposited (Rs. in Lac) Forum Where the Dispute is pending
Income Tax Delhi Income Tax Demand A.Y. 2016-17 to A.Y 2017-18 3359.75 CIT(A) Delhi- 26
Service Tax Act Delhi Service Tax Demand F.Y. 2006-07 to F.Y. 2009-10 1076.13 Tribunal CESTAT New Delhi
Central Excise Act Noida Excise Demand F.Y. 2012-13 3.50 Tribunal CESTAT Allahabad
GST Patna GST Demand F.Y. 2017-18 21.74 Patna High Court
GST Patna GST Demand F.Y. 2019-20 16.40 Additional Commissioner State Tax (Appeal) Patna
GST Chennai GST Demand F.Y. 2017-18 53.53 Appeal To Appellant Authority
Total 4531.05

(viii) The Company has defaulted in repayment of its dues to the Bankand Financial Institution as under: -

Name of Bank Delayed Principal Amount in Rs. Period of Default (days) Delayed Interest Amount in Rs. Delay in No. of Days
Syndicate Bank - FITL 396876426 1521
Syndicate Bank - TL 312089156 1859
YES BANK ( FITL-Lockdown Interest Moratorium) 4510567 32 49785 32
ICICI BANK( FITL-Lockdown Interest Moratorium) 4669710 60 103963 60
Yes Bank (WCDL) 4900866 39
Canara Bank 97109704 366
State Bank of India (WCDL) 3838904 1
State Bank of India (WCL) 1919452 1
ICICI Bank 859004 1
ICICI Bank (WCDL) 4414931 1
Oriental Bank of Commerce 9543630 125
Oriental Bank of Commerce(WCDL) 8269567 60
Indusind Bank (WCL) 1312202 1
Indusind Bank (WCL) 1701718 1

(ix) According to the information and explanation given to us themoney raised by way of initial public offer and Term Loans availed by the Company wereapplied for the purpose for which those were raised.

(x) According to the information and explanations given to us no fraudon or by the Company has been noticed or reported during the year.

(xi) The managerial remuneration provided is in accordance with therequisite approval as mandated by the provisions of section 197 read with Schedule V tothe Companies Act 2013.

(xii) The Company is not the Nidhi Company and as such this clause isnot applicable.

(xiii) All transactions with the related parties are in compliance withsections 177 and 188 of Companies Act 2013 and are disclosed in the financial statements.

(xiv) The Company during the year has not made any preferentialprivate placement of shares or fully or partly convertible debentures during the year.

(xv) As explained to us the Company has not entered with any non-cashtransaction with Directors or persons connected with them during the year within themeaning of section 192 of the Companies Act 2013.

(xvi) The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.

For Rupesh Goyal & Co.
Chartered Accountants
Firm Regn No. 021312N
Rupesh Goyal
Place: Delhi Proprietor
Date: 22 June 2021 M.No. 507856

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