the Members of
DHENU BUILDCON INFRA LIMITED
Report on the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statements of DHENUBUILDCON INFRA LIMITED. ("the Company) which comprise the Balance Sheet as on 31stMarch 2021 the Statement of Profit and Loss and Cash Flow Statement for the yearended and a summary of significant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Companies Act 2013 (the Act') in the manner so required and give a true andfair view in conformity with the accounting principles generally accepted in Indiaincluding Indian Accounting Standards (Ind AS') specified under Section 133 of theAct of the state of affairs (financial position) of the Company as at 31 March 2021 andits loss and its cash flows for the year ended on that date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Our responsibilities under those standards are furtherdescribed in the Auditor's Responsibilities for the Audit of the Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India (ICAI') togetherwith the ethical requirements that are relevant to our audit of the financial statementsunder the provisions of the Act and the rules thereunder and we have fulfilled our otherethical responsibilities in accordance with these requirements and the Code of Ethics. Webelieve that the audit evidence we have obtained is sufficient and appropriate to providea basis for our opinion.
Key Audit Matters
Emphasis of Matter
We draw your attention to Note XIII to the standalone financial results which explainsthe uncertainties and the management's assessment of the financial impact due to thelockdown and other restrictions imposed by the government and conditions related toCOVID-19 pandemic situation for which a definitive assessment of the impact is highlydependent upon the circumstances as they evolve in the subsequent period. Our opinion isnot modified in the respect of this matter.
Due to the COVID-19 pandemic and the lockdown and other restrictions imposed by theGovernment and the local administration the audit processes were carried out based on theremote access to the extent available/feasible and necessary records made available by themanagement through digital medium. Our opinion is not modified in respect of the abovematter.
Information other than the Financial Statements and Auditor's Report thereon
The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Board's Report including Annexures to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the standalone financial statements and our auditor's report thereon.
Our opinion on the standalone financial statements does not cover the other informationand we do not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial statements our responsibilityis to read the other information and in doing so consider whether the other informationis materially inconsistent with the standalone financial statements or our knowledgeobtained during the course of our audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatementof this other information; we are required to report that fact. We have nothing to reportin this regard.
Management's Responsibility for the Standalone Ind AS Financial Statements
The Management and Board of Directors of the Company are responsible for the mattersstated in section 134(5) of the Companies Act 2013 (the act') with respect to thepreparation of these standalone Ind AS financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance with the accounting principles generally accepted in India including theAccounting Standards (Ind AS) specified under Section 133 of the Act read with rule 7 ofthe Companies (Accounts) Rules 2015 (as amended).
This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgement and estimates that are reasonable andprudent; design implementation and maintenance of adequate internal financial controlthat are operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the financialstatements that give a true and fair view and are free from material misstatement whetherdue 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 withStandards on Auditing 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 Standards on Auditing we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe standalone financial statements or if such disclosures are inadequate to modify ouropinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor's report. However future events or conditions may cause the Company to cease tocontinue as a going concern.
Evaluate the overall presentation structure and content of the standalonefinancial statements including the disclosures and whether the standalone financialstatements represent the underlying transactions and events in a manner that achieves fairpresentation.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the standalone financial statementsof the current period and are therefore the key audit matters. We describe these mattersin our auditor's report unless law or regulation precludes public disclosure about thematter or when in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
As required by Section 197(16) of the Act we report that the Company has paidremuneration to its directors during the year in accordance with the provisions of andlimits laid down under Section 197 read with Schedule V to the Act.
As required by the Companies (Auditor's Report) Order 2016 (the Order') issuedby the Central Government of India in terms of Section 143(11) of the Act we give in the"Annexure A" a statement on the matters specified in paragraphs 3 and 4 of theOrder.
Further to our comments in Annexure A as required by section 143(3) of the Act wefurther 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 purpose of our audit;
b) in our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination of those books;
c) the Balance Sheet Statement of Profit and Loss and cash flow statement dealt withby this Report are in agreement with the books of account;
d) in our opinion the aforesaid standalone financial statement comply with theapplicable Accounting Standards specified under section 133 of the Act read with the rule7 of the Companies (Accounts) Rules 2015 (as amended).
e) On the basis of written representations received from the directors as on 31stMarch 2021 and taken on record by the Board of Directors none of the directors isdisqualified as 31st March 2021 from being appointed as a director in termsof section 164(2) of the Act.
f) We have also audited the internal financial controls over financial reporting(IFCOFR) of the Company as on 31st March 2021 in conjunction with our audit ofthe standalone financial statements of the Company for the year ended on that date and ourreport as per "Annexure B" expressed an unmodified opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us we report as under with respect to other matters to be included in theAuditor's Report in accordance with the Rule 11 of the Companies (Audit and Auditors)Rules 2015 (as amended):
i. The Company does not have any pending litigations which would impact on itsfinancial position in its standalone Ind AS financial statements.
ii. The Company did not have any long-term contracts including derivative contracts; assuch the question of commenting on any material foreseeable losses thereon does not arise.
iii. There has not been an occasion in case of the Company during the year under thereport to transfer any sums to the Investor Education and Protection Fund. The Question ofdelay in transferring such sums does not arise.
"ANNEXURE A" TO INDEPENDENT AUDITORS' REPORT OF EVEN DATE TO THE MEMBERS OFDHENU BUILDCON INFRA LIMITED FINANCIAL STAT EMENTS FOR THE YEAR ENDED ON 31 MARCH 2021
Based on the audit procedures performed for the purpose of reporting a true and fairview on the standalone financial statements of the Company and taking into considerationthe information and explanations given to us and the books of account and other recordsexamined by us in the normal course of audit and to the best of our knowledge and beliefwe report that:
1. The Company does not own any fixed assets during the year under audit henceprovision of sub-clause (a) (b) and (c) of clause (i) is not applicable.
2. The Company does not hold any inventory during the year. According the provision ofclause 3 (ii) (a) (b) and (c) of said order will not be applicable.
3. In our opinion and according to the information and explanations given to us TheCompany has not granted any unsecured loans to any parties as covered in the registerunder section 189 of the Act.
4. According to the information and explanations given to us the company has compliedwith the provisions of section 185 and 186 of the companies Act 2013 in respect of theloans and investment made and guarantees and security provided by it.
5. The Company has not accepted deposits from the public. Hence the question ofcomplying with the directives issued by the Reserve Bank of India and the provisions ofSection 73 to 76 or other relevant provisions of the Companies Act 2013 and rules framedthere under are not applicable to the Company
6. Based on the information & explanation provided to us the Central Governmenthas not prescribed the maintenance of cost records under Section 148 (1) of the companiesAct 2013 for any products of the company.
7. (a) According to the information and explanations given to us no undisputed amountspayable in respect of applicable statutory dues were in arrears for a period exceeding sixmonths at the end of the financial year from the date they became payable.
(b) According to the information and explanations given to us except Income Tax duesthere are no other statutory dues that have not been deposited with appropriateauthorities on account of any dispute. Details of dues towards Income Tax that have notbeen deposited on account of dispute are as stated below.
|Name of Statute ||Nature of Dues ||Amount (Rs.) ||Period to which it relate ||Forum where dispute is pending |
|Income Tax Act 1961 ||Against Order passed u/s 143(3) r.w.s. 153C ||55114640/- ||A.Y. 2012-13 ||CIT (A)-52 Mumbai |
|Income Tax Act 1961 ||Against Order passed u/s 143(3) r.w.s. 153C ||719410/- ||A.Y. 2014-15 ||CIT (A)-52 Mumbai |
|Income Tax Act 1961 ||Against Order passed u/s 143(3) r.w.s. 153C ||534170/- ||A.Y. 2015-16 ||CIT (A)-52 Mumbai |
|Income Tax Act 1961 ||Against Order passed u/s 143(1) ||114882/- ||A.Y. 2008-09 ||ITAT Mumbai |
|Income Tax Act 1961 ||Against Order passed u/s 143(3) ||46290/- ||A.Y. 2016-17 ||CPC |
8. According to the information and explanations give to us the Company have not takenloan or borrowing from financial institution during the year.
9. The Company did not raised any money by way of initial public offer further publicoffer (including debt instruments) and terms loans during the year. Accordingly paragraph3 (ix) of the order is not applicable to the Company.
10. According to the information and explanations given to us no material fraud by theCompany or on the Company by its officers or employees has been noticed or reported duringthe course of our audit.
11. According to the information and explanations given to us and based on ourexamination of the records of the Company has not paid / provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofSection 197 read with Schedule V of the Companies Act 2013.
12. In our opinion and according to the information and explanation given to us thecompany is not a Nidhi company. Hence the provision of clause 3(xii) of the order are notapplicable to the Company.
13. According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Companies Act 2013 where applicable anddetails of such transactions have been disclosed in the financial statements as requiredby the applicable accounting standards.
14. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.
15. According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has not entered into noncashtransactions with directors or persons connected with him. Hence the provision of clause3(xii) of the order are not applicable to the company.
16. According to the information and explanations given to us the Company isregistered under section 45-IA of the Reserve Bank of India 1934 and the registrationcertificate is obtained.
"ANNEXURE B" TO INDEPENDENT AUDITORS' REPORT OF EVEN DATE TO THE MEMBERS OFDHENU BUILDCON INFRA LIMITED FINANCIAL STAT EMENTS FOR THE YEAR ENDED ON 31 MARCH 2021
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of DHENUBUILDCON INFRA LIMITED ("the Company") as of March 31 2021 in conjunction withour audit of the standalone financial statements of the Company for the year ended on thatdate.
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". 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.
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") and the Standards on Auditing specified under section143(10) of the Companies Act 2013 to the extent applicable to an audit of internalfinancial controls both applicable to an audit of Internal Financial Controls and bothissued by the Institute of Chartered Accountants of India. Those Standards and theGuidance Note require that we comply with ethical requirements and plan and perform theaudit to obtain reasonable assurance about whether adequate internal financial controlsover financial reporting was established and maintained and if such controls operatedeffectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about theadequacy 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.
We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols system over 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 of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;
(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial 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.
In our opinion and to the best of our information and according to the explanationsgiven to you the Company has in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at March 31 2021 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.