BIGBLOC Construction Ltd.
|BSE: 540061||Sector: Industrials|
|NSE: BIGBLOC||ISIN Code: INE412U01025|
|BSE 00:00 | 12 Aug||116.20||
|NSE 00:00 | 12 Aug||116.60||
|Mkt Cap.(Rs cr)||823|
|Mkt Cap.(Rs cr)||822.70|
BIGBLOC Construction Ltd. (BIGBLOC) - Auditors Report
Company auditors report
The Members of
BIGBLOC CONSTRUCTION LIMITED
Report on the Audit of the Standalone Financial Statements QualifiedOpinion
We have audited the accompanying standalone financial statements ofBigbloc Construction Limited ("the Company") which comprise the Balance Sheetas at March 31 2020 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 except for the effects of matter described in the 'Basis ofQualified Opinion' Paragraph below the aforesaid standalone financial statements give theinformation required by the Act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at 31st March 2020 and its profit (financial performanceincluding other comprehensive income) its cash flows and the changes in equity for theyear ended on that date.
Basis of Qualified Opinion
The company has not provided for Post-Employment Benefits and otherlong term employee benefits under Defined Benefit Plans on accrual basis but provides thesame as and when they become due for payment. This method of accounting of Post-EmploymentBenefits and other long term employee benefits under Defined Benefit Plans is in deviationwith Ind AS - 19 on Employee Benefits. As there is no actuarial report or basis ofcalculation available with the management of such Post-Employment Benefits and other longterm employee benefits the quantum of deviation cannot be ascertained. If the company hadfollowed the method accounting as per Ind AS - 19 then employee benefit expense wouldhave increased and correspondingly Profit for the period would have reduced.
We conducted our audit in accordance with the Standards on Auditing(SAs) specified under section 143(10) of the Companies Act 2013. Our responsibilitiesunder those Standards are further described in the Auditor's Responsibilities for theAudit of the Financial Statements section of our report. We are independent of the Companyin accordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Companies Act 2013 and the Rulesthereunder and we have fulfilled our other ethical responsibilities in accordance withthese requirements and the Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the financial statements of the current period.These matters were addressed in the context of our audit of the financial statements as awhole and in forming our opinion thereon and we do not provide a separate opinion onthese matters.
The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Board ofDirectors report but does not include the financial statements and our auditor's reportthereon. Our opinion on the financial statements does not cover the other information andwe will not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements ourresponsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If basedon the work we have performed we conclude that there is a material misstatement of thisother information we are required to report that fact. We have nothing to report in thisregard.
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 of the accounting records relevant to the preparation andpresentation of the standalone financial statements that give a true and fair view and arefree from material misstatement 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 Financial Statements
Our objectives are to obtain reasonable assurance about whether thefinancial statements as a whole are free from material misstatement whether due to fraudand error and to issue an auditor's report that includes our opinion. Reasonableassurance is a high level of assurance but is not a guarantee that an audit conducted inaccordance with SAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individuallyor in the aggregate they could reasonably be expected to influence the economic decisionsof users taken on the basis of these 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 thefinancial statements whether due to fraud or error design and perform audit proceduresresponsive to those risks and obtain audit evidence that is sufficient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatementresulting from fraud is higher than for one resulting from error as fraud may involvecollusion forgery international omissions misrepresentations or the override ofinternal control.
Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances.
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 financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusion are based on the audit evidence obtained upto the dateof our auditor's report. However future events or conditions may cause the Company tocease to continue as a going concern.
Evaluate the overall presentation structure and content of thefinancial statements including the disclosures and whether the financial statementsrepresent the underlying transactions and events in a manner that achieves fairpresentation.
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 we havecomplied with relevant ethical requirements regarding independence and to communicatewith them all relationships and other matters that may be reasonably be thought to bear onour 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 financialstatements of the current period and are therefore the key audit matters. We describethese matters in our auditor's report unless law or regulation precludes public disclosureabout the matter or when
in extremely rare circumstances we determine that a matter should notbe communicated in our report because the adverse consequences of doing so wouldreasonably be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016("the Order") issued by the Central Government of India in terms of sub-section(ll) of section 143 of the Act we give in the Annexure a a statement on the mattersspecified in the paragraph 3 and 4 of the Order to the extent applicable.
2. As required by Section 143(3) of the Act we report that:-
a) We have sought & 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 accounts as required by law have beenkept by the company so far as appears from our examination of such books.
c) The Balance Sheet the Statement of Profit and Loss the Statementof Changes in Equity and the Statement of Cash Flows dealt with by this report are inagreement with the books of account.
d) In our opinion the aforesaid Ind AS financial statements complywith the Indian Accounting Standards prescribed under Section 133 of the Act except forInd AS - 19 on Employee Benefits in respect of provision for Long Term Employee Benefit& Defined Benefit plans.
e) On the basis of the written representations received from thedirectors as on 31st March 2020 and taken on record by the board of directors none ofthe directors is disqualified as on 3lst March 2020 from being appointed as a directorsin terms of 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 B".
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;
In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid/ provided by the Company to its Directorsduring the year is in accordance with the provisions of Section 197 of the Act
h) 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 inour opinion and to the best of our information and according to the explanations given tous:
i. the Company has disclosed the impact of pending litigations on itsfinancial position in its financial statements - Refer Note 3l to the financialstatements;
iii. there were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company.
Annexure "A" to the Independent Auditor's Report of Even dateon the Financial Statements of Bigbloc Construction Limited for year ended on 31st March2020 (Referred to in Paragraph '1' under "Report on Other Legal and
Regulatory Requirements' of our report of even date)
i. (a) The Company has maintained proper records showing fullparticulars including quantitative details and situation
of fixed assets.
(b) The Company has a regular programme of physical verification of itsfixed assets by which fixed assets are verified at reasonable intervals. In accordancewith this programme certain fixed assets were verified during the year and no materialdiscrepancies were noticed on such verification.
(c) Based on our audit procedures and the information and explanationreceived by us we report that all title deeds of immovable properties of the company heldas fixed assets are held in the name of the company. In respect of one Land at Umargaonand Land at Boisar Palghar which were vested in the company in pursuance of Scheme ofArrangement (De-merger) of AAC Block Division of Mohit Industries Limited in the companyand though the scheme has become effective and according to order of the Gujarat HighCourt the immovable properties are vested in the company however the procedure of thetransfer of titles in name of the company is pending as on date of audit report.
ii. The Management has been conducted physical verification of theinventories at reasonable intervals. As informed to us no material discrepancies werenoticed on physical verification carried out during the year.
iii. The Company has granted unsecured loans to one company covered inthe register maintained under section 189 of the Companies Act 2013 ('the Act').
(a) The terms and conditions of the grant of such loans are in ouropinion prima facie not prejudicial to the Company's interest.
(b) As informed to us the principal and interest of above loans wererepayable as and when demanded and accordingly repayments or receipts were regular as andwhen demanded by the company.
(c) There are no overdue amounts in respect of the loans granted to thecompany listed in the register maintained under section 189 of the Act.
iv. In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of section 185 and 186 of theAct with respect to the loans and investments made.
v. According to information & explanation given to us the companyhas not accepted any deposit from the public.
vi. As explained to us the company is maintaining accounts and recordsprescribed by the Central Government under section 148 (1) of the Companies Act 2013.However no such accounts/records were verified by us.
vii. (a) The Company has generally been regular in depositingundisputed statutory dues including Provident Fund
Goods and Service Tax Customs Duty Cess and other material statutorydues applicable to it with the appropriate authorities. The company has not deductedemployees' state insurance and thus question of payment does not arise. However there hasbeen delay in depositing the income tax and dividend distribution tax by the company.
There were no undisputed amounts payable in respect of Provident FundIncome Tax Goods and Service Tax Customs Duty Cess and other material statutory dues inarrears as at March 31 2020 for a period of more than six months from the date theybecame payable.
(b) According to the information and explanations given to us thereare no material dues of duty of customs Goods and Service Tax Sales Tax Service TaxExcise Duty Value Added Tax and Cess which have not been deposited with the appropriateauthorities on account of any dispute. Details of Income Tax which have not beendeposited as on 31 March 2020 on account of disputes are given below:
viii. In our opinion and according to the information and explanationsgiven to us the company has not defaulted in repayment of loans or borrowing to thefinancial institutions banks or government. As explained to us no debenture has beenissued by the company.
ix. The Company did not raise any money by way of initial public offeror further public offer (including debt instruments). According to information andexplanations given to us we are of the opinion that the term loans have been applied forthe purposes for which they were raised.
x. According to the information and explanations given to us no fraudby the Company or on the Company by its officers or employees has been noticed or reportedduring the course of our audit.
xi. In our opinion and according to the information and explanationsgiven to us the Company has paid/provided managerial remuneration in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theAct.
xii. The Company is not a Nidhi Company and hence reporting underclause 3 (xii) of the Order is not applicable to the Company.
xiii. In our opinion and according to the information and explanationsgiven to us the Company is in compliance with Section 177 and 188 of the Companies Act2013 where applicable for all transactions with the related parties and the details ofrelated party transactions have been disclosed in the standalone financial statements asrequired by the applicable accounting standards.
xiv. According to the information and explanations give to us and basedon our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year.
xv. According to the information and explanations given to us and basedon our examination of the records of the Company the Company has not entered intonon-cash transactions with directors or persons connected with him. Accordingly paragraph3(xv) of the Order is not applicable.
xvi. The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934.
Annexure "B" to the Independent Auditor's Report of Even dateon the Financial Statements of Bigbloc Construction Limited for year ended on 31st March2020
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financialreporting of Bigbloc Construction Limited ("the Company") as of 31 March 2020 inconjunction with our audit of financial statements of the Company for the year ended onthat date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing andmaintaining 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 ('ICAI').These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls over FinancialReporting (the "Guidance Note") and the Standards on Auditing issued by ICAIand deemed to be prescribed under section 143(10) of the Companies Act 2013 to theextent applicable to an audit of internal financial controls both applicable to an auditof Internal Financial Controls and both issued by the Institute of Chartered Accountantsof India. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such 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 judgment including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.
Commensurate to the size and nature of the business we believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.
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 themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures 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 FinancialReporting
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.
In our opinion to the best of our information and according to theexplanations given to us the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2020 based on theinternal financial control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the ICAI.