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Dhruv Consultancy Services Ltd.

BSE: 541302 Sector: Others
NSE: DHRUV ISIN Code: INE506Z01015
BSE 00:00 | 12 Aug 47.90 -1.40
(-2.84%)
OPEN

51.55

HIGH

51.55

LOW

47.45

NSE 00:00 | 12 Aug 48.15 -0.60
(-1.23%)
OPEN

49.30

HIGH

49.55

LOW

47.85

OPEN 51.55
PREVIOUS CLOSE 49.30
VOLUME 5354
52-Week high 84.65
52-Week low 27.20
P/E 14.01
Mkt Cap.(Rs cr) 69
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 51.55
CLOSE 49.30
VOLUME 5354
52-Week high 84.65
52-Week low 27.20
P/E 14.01
Mkt Cap.(Rs cr) 69
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Dhruv Consultancy Services Ltd. (DHRUV) - Auditors Report

Company auditors report

To The Members of Dhruv Consultancy Services Limited Report on the Audit of theFinancial Statements:

Opinion

We have audited the accompanying financial statements of Dhruv Consultancy ServicesLimited(“the Company”) which comprise the Balance Sheet as at March 31 2021te Statement of Profit and Loss the Statement of Cash Flows for the year ended on thatdate and a summary of the significant accounting policies and other explanatoryinformation (hereinafter referred to as “the financial statements”).

In our opinion and to the best of our information and according to the explanationsgiven b us the aforesaid financial statements give the information required by theCompanies Act 2013 (“the Act”) in the manner so required and give a true andfair view in conformity with te Accounting Standards prescribed under section 133 of theAct and other accounting principles generally accepted in India of the state of affairsof the Company as at March 31 2021 the profit and its cash flows for the year ended onthat date.

Basis for opinion

We conducted our audit of the financial statements in accordance with the Standards<ui Auditing specified under section 143(10) of the Act (SAs). 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 tie Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the independence requirements that are relevant to our audit ofthe financial statements under the provisions of the Act and the Rules made thereunderand we have fulfilled our other ethical responsibilities in accordance with theserequirements and the ICAI's Code of Ethics. We believe that the audit evidence we haveobtained is sufficient and appropriate to provide a basis for our audit opinion on thefinancial statements.

Key audit matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined the matter described below to be the key audit matter to be communicatedin ou report.

• Key Audit matter on Revenue recognition:

Revenue from rendering of ‘Infrastructure Project Consultancy' services isrecognized ad accrued with reference to the terms of agreements for such service. For theyear ended 31st March 2021 revenue from ‘Infrastructure Project Consultancy'services amounting to Rs. 597632506 /- (Refer Note No.15) is recognized based on thedifferent sub-categories of Services like ‘Authority Engineering Services'‘Detailed Project Report Services' and other allied services. The management hasrecognized revenue at the rates based on agreements with customers or estimated by themanagement based on the latest terms of the agreement or latest negotiation with customersand other industry considerations as appropriate.

Due to the large variety and complexity of contractual terms as well as ongoingnegotiations with customers significant judgments are required to estimate the ratesapplied interpretation of terms of agreement and certainty of realization measurement ofbilled services and timing of services. If the contracted services are not delivered thenpenal clauses in the safagreement are invoked by the customers which will have an impacton the accuracy d> revenue recognized in the current year and accrued as at year end.

• Auditor's Response:

We have performed the following procedures in relation to the accuracy of revenuerecognized and accrued.

Understood evaluated and tested the key controls over the rates applied time 6billing and measurement of services delivered in case of ‘Infrastructure ProjectServices' and its sub-categories. We selected a sample of transactions and:

Compared sales invoices with Work orders remarks of internal project monitoring teamand perception of management as regards realizability of revenue.

Tested agreed revenue and the revenue recognized to the underlying accounting recordswith reference to the terms of agreement of services rendered.

Checked to bank advices or credit notes on a sample basis for the net settlement arlreviewed aged items for any disputed amounts.

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 arl Analysis Board's Report including Annexure to Board's Report BusinessResponsibility Report Corporate Governance and Shareholder's Information but does notinclude the financial statements and our auditor's report thereon.

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

In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit otherwise appears to be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information; we are required to report that fact. We havenothing to report in this regard.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) dthe Act with respect to the preparation of these financial statements that give atrue and fair view of the financial position financial performance and cash flows of theCompany n accordance with the Accounting Standards and other accounting principlesgenerally accepted in India. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of he 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 assessingteCompany's ability to continue as a going concern disclosing as applicable mattersrelated b 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 b do so.

The Board of Directors are responsible for overseeing the Company's financial reportingprocess.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements aa whole are free from material misstatement whether due to fraud or errorand to issue ai 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 ae considered material if individually or in the aggregate they couldreasonably be expected b influence the economic decisions of users taken on the basis ofthese financial statements.

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

1. Identify and assess the risks of material misstatement of the financial statementswhether 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 foror 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.

2. Obtain an understanding of internal financial controls relevant to the audit inorderb 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 whetherteCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

3. Evaluate the appropriateness of accounting policies used and the reasonableness 6accounting estimates and related disclosures made by management.

4. Conclude on the appropriateness of management's use of the going concern basis diaccounting 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 in hefinancial statements or if such disclosures are inadequate to modify our opinion. Orconclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease b continue asa going concern.

5. Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually ran aggregate makes it probable that the economic decisions of a reasonablyknowledgeable user of the financial statements may be influenced. We consider quantitativemateriality and qualitative factors in (i) planning the scope of our audit work and inevaluating the results 6 our work; and (ii) to evaluate the effect of any identifiedmisstatements in the financial statements.

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 them alrelationships 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 financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen n extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected b outweigh the public interest benefits of such communication.

Other Matters

We could not visit physically any of the work sites or locations of the auditee companyfor carrying our audit process for the year under report due to lockdown imposed by theGovernment in order to restrict the spread of Covid 19.The Statutory Audit processwscarried out as a ‘Work from home' exercise based on the financial datainformation supporting made available by the management through digital medium includingaccess tthe Accounting Software and Accounting Data.

Report on Other Legal and Regulatory Requirements

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

a) We have sought and obtained all the information and explanations which to he best ofour knowledge and belief were necessary for the purposes of our audit.

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 and the Statement of Cash Flowdealt with by this Report are in agreement with the relevant books daccount.

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

e) On the basis of the written representations received from the directors as aMarch31 2021 taken on record by the Board of Directors none of the directors b disqualifiedas on March 31 2021 from being appointed as a director in terms d Section 164 (2) of theAct.

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 naccordance 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 teexplanations givento us the remuneration paid by the Company to its directors during the year is inaccordance with the provisions of section 197 of the Act.

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

i. The Company does not have any pending litigations which would impact fe financialposition.

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 reportto transfer any sums to the Investor Education and Protection Fund.

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

For Mittal & AssociatesChartered Accountants
Firm Registration number: 106456W
Mukesh Kumar Sharma
Place: Mumbai Date: 23rd June 2021 Partner Membership number: 134020 UDIN:21134020AAAACR1033

ANNEXURE A to the Independent Auditor's Report

(Referred to in paragraph 1(f) under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Dhruv Consultancy Services Limitedof even date)

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

We have audited the internal financial controls over financial reporting of DhruvConsultancy Services Limited (“the Company”) as of March 31 2021 in conjunctionwith our audit of te financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the Company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued tyhe 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 respective company's policies the safeguarding of itsassets the prevention and detection of frauds and errors the accuracy and completenessof the accounting records and the timely preparation of reliable financial informationas required under the Companies Act 2013.

Auditor's Responsibility

Our responsibility is to express an opinion on the internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with tie Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the “Guidance Note”) issued by the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under Section 143(10) of the CompaniesAct 2013 to the extent applicable to ai audit of internal financial controls. ThoseStandards and the Guidance Note require that ve comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofhe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining a 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 judgment 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 internal financial controls system overfinancial reporting of the Company.

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 permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only naccordance with authorizations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

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 ay evaluation of the internal financial controls over financialreporting to future periods asubject to the risk that the internal financial control overfinancial reporting may become inadequate because of changes in conditions or that thedegree of compliance with te policies or procedures may deteriorate.

Opinion

In our opinion to the best of our information and according to the explanations givento us te Company has in all material respects an adequate internal financial controlssystem oe financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2021 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.

For Mittal & AssociatesChartered Accountants Firm Registration number: 106456W
Place: Mumbai Date: 23rd June 2021 Mukesh Kumar Sharma Partner Membership number: 134020 UDIN:21134020AAAACR1033

ANNEXURE B to the Independent Auditor's Report

(Referred to in paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements' section of our report to the Members of Dhruv Consultancy Services Limitedof even date)

1) In case of the Company's Fixed Assets:

a) According to the information and explanations given to us the Company hs maintainedproper records showing full particulars including quantitative details ad situation offixed assets;

b) The Fixed Assets have been physically verified by the management in a phased mannerwhich in our opinion is reasonable having regard to the size of the company and natureof its assets. Pursuant to the program a portion of the fixed asset has been physicallyverified by the management during the year and no material discrepancies between the booksrecords and the physical fixed assets have been noticed.

c) According to the information and explanations given to us and the records examinedby us and based on the examination of the registered sale deed provided to us ve reportthat the title deeds comprising all the immovable properties of land ad buildings whichare freehold are held in the name of the Company as at the balance sheet date.

2) According to the information and explanations given to us the Company is engaged nthe Consultancy for infrastructure projects and it does not have any inventory.Accordingly reporting under clause 3(ii) of the Order is not applicable to the Company.

3) The Company has not granted any loans secured or unsecured to Companies firmsLimited Liability Partnerships or other parties covered in the Register maintained underSection 189 of the Act. Accordingly the provisions of clause 3 (iii) (a) to (c) of theOrder are not applicable to the Company and hence not commented upon.

4) In our opinion and according to the information and explanations given to us tecompany has complied with the provisions of Section 185 and 186 of the Companies Act 2013In respect of loans investments guarantees and security.

5) The Company has not accepted deposits during the year and does not have ay unclaimeddeposits as at March 31 2020 and therefore the provisions of the clause3 (v) of theOrder are not applicable to the Company.

6) As informed to us the maintenance of Cost Records has not been specified by the

Central Government under sub-section (1) of Section 148 of the Act in respect of teactivities carried on by the company. Thus reporting under clause 3(vi) of the order b notapplicable to the Company.

7)

a) According to information and explanations given to us and on the basis of orexamination of the books of account and records the Company has generally been regularin depositing undisputed statutory dues including Income-Tax Goods adl Services Tax andany other material statutory dues applicable to it with te appropriate authorities

b) According to the information and explanations given to us no undisputed amountspayable in respect of the above were in arrears as at March 31 2021 for a period d>more than six months from the date on when they become payable.

c) According to the information and explanation given to us there are no dues dlncomeTax Goods and Services Tax duty of customs outstanding on account of any dispute.

8) In our opinion and according to the information and explanations given to us teCompany has not defaulted in the repayment of dues to banks and financial institutions.The Company has availed moratorium on repayment of loans and interest thereon from banksand financial institutions based on the circular issued by te Reserve Bank of India andaccordingly repayment of dues from banks and financial institutions falling due has notbeen considered for the moratorium period. "Ife Company has not issued anydebentures.

9) In our opinion and according to the information and explanations given to us teCompany has not raised any money by way of initial public offer or further public offer(including debt instruments). The company has spent the amount raised through term loansfor the purpose for which such loans were availed.

10) Based upon the audit procedures performed and the information and explanationsgiven by the management we report that no fraud by the Company or on the Company by itsofficers or employees has been noticed or reported during the year.

11) Based upon the audit procedures performed and the information and explanationsgiven by the management the managerial remuneration has been paid or provided naccordance with the requisite approvals mandated by the provisions of section 1SF readwith Schedule V to the Companies Act;

12) In our opinion the Company is not a Nidhi Company. Therefore the provisions <6clause 4 (xii) of the Order are not applicable to the Company.

13) In our opinion all transactions with the related parties are in compliance withsection 177 and 188 of Companies Act 2013 and the details have been disclosed in teFinancial Statements as required by the applicable accounting standards.

14) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not made any preferential allotment privateplacement of shares or fully or partly convertible debentures during the year underreview. Accordingly the provisions of clause 3 (xiv) of the Order are no applicable tothe Company and hence not commented upon.

15) Based upon the audit procedures performed and the information and explanationsgiven by the management the company has not entered into any non-cash transactions withdirectors or persons connected with him. Accordingly the provisions of clause 3 (xv) ofthe Order are not applicable to the Company and hence ndcommented upon.

16) The company is not required to be registered under section 45IA of the Reserve Bankd> India Act 1934.

For Mittal & Associates Chartered Accountants Firm Registration number: 106456W
Place: Mumbai Date: 23rd June 2021 Mukesh Kumar Sharma Partner Membership number: 134020 UDIN:21134020AAAACR1033

.