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Relstruct Buildcon Ltd.

BSE: 540426 Sector: Infrastructure
NSE: N.A. ISIN Code: INE792V01010
BSE 00:00 | 03 Aug Relstruct Buildcon Ltd
NSE 05:30 | 01 Jan Relstruct Buildcon Ltd
OPEN 3.20
PREVIOUS CLOSE 3.20
VOLUME 3000
52-Week high 3.20
52-Week low 0.00
P/E 106.67
Mkt Cap.(Rs cr) 5
Buy Price 3.20
Buy Qty 3000.00
Sell Price 3.53
Sell Qty 3000.00
OPEN 3.20
CLOSE 3.20
VOLUME 3000
52-Week high 3.20
52-Week low 0.00
P/E 106.67
Mkt Cap.(Rs cr) 5
Buy Price 3.20
Buy Qty 3000.00
Sell Price 3.53
Sell Qty 3000.00

Relstruct Buildcon Ltd. (RELSTRUCTBUILD) - Auditors Report

Company auditors report

To

The Members

Relstruct Buildcon Limited

Report on the Audit of the Standalone Financial Statements

Qualified Opinion

We have audited standalone financial statements of Relstruct Buildcon Limited(“the company”) which comprise the Balance Sheet as at 31st March2021 the Statement of Profit and Loss and the Cash Flow Statement for the year thenended and notes to the financial statement including a summary of significant accountingpolicies and other explanatory information.

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the company as at 31stMarch 2021 and profit and its cash flows for the year ended on that date.

Basis for Qualified Opinion

Company does not make loan repayments to DHFL as per the predefined schedule. Themanagement has not accounted interest in the books of account for the cuurent financialyear. No opinion report from the lender is available for verification.

We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013 (the Act). Our responsibilities underthose Standards are further described in the Auditor’s Responsibilities for the Auditof the Standalone Financial Results section of our report. We are independent of theCompany in accordance with the Code of Ethics issued by the Institute of CharteredAccountants of India together with the ethical requirements that are relevant to our auditof the financial results under the provisions of the Companies Act 2013 and the Rulesthere under 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 on the financialstatements.

Emphasis of Matter

• There is no material development in projects on hands held as inventory work inprogress or project advance during the audit period.

• The RERA registration held in the name of continuing projects are alreadyexpired and no further procedure has been taken by the company.

Our opinion is not modified in respect of this matter.

Management’s Responsibility for the Standalone Financial Statements

The Company’s Board of Directors is responsible for the matters stated in section134(5) of the Companies Act 2013 (“the Act”) with respect to the preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes the maintenance of adequate accountingrecords in accordance with the provision of the Act for safeguarding of the assets of theCompany and for preventing and detecting the frauds and other irregularities; selectionand application of appropriate accounting policies; making judgments and estimates thatare reasonable and prudent; and design implementation and maintenance of adequateinternal financial control that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

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

Those Board of Directors are also responsible for overseeing the Company’sfinancial reporting process.

Auditor’s Responsibilities for the Audit of the Standalone Financial Results

Our objectives are to obtain reasonable assurance about whether the standalonefinancial results as a whole are free from material misstatement whether due to fraud orerror 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 standalone financial results.

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

i. Identify and assess the risks of material misstatement of the standalone financialresults whether due to fraud or error design and perform audit procedures responsive tothose 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.

ii. Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances but not for the purposeof expressing an opinion on the effectiveness of the company’s internal control.

iii. Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by the Board of Directors.

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

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

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.

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditor’s Report) Order 2016 (“theOrder”) issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure a statement on the matters Specified inparagraphs 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 and obtained all the information and explanations which to the bestof our 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 Cash Flow statementdealt with by this Report are in agreement with the books of account.

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

e) On the basis of written representations received from the directors as on 31stMarch 2021 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2021 from being appointed as a director interms of Section 164(2) of the Act.

f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in “Annexure B”

g) 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 Rule 11 of the Companies (Audit and Auditors)Rules 2014:

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

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long term contracts includingderivative contracts;

iii. There were no amounts which required to be transferred by the Company to theInvestor Education and Protection Fund

The “Annexure A” referred to in paragraph 1 of the Our Report of even date tothe members of Relstruct Buildcon Limited on the accounts of the company for the yearended 31st March 2021.

On the basis of such checks as we considered appropriate and in terms of informationand explanations given to us we state that:

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

b. We have been informed that the fixed assets have been physically verified by theManagement at reasonable intervals. In our opinion the frequency of verification isreasonable with regard to the size of the company and nature of assets. According toinformation and explanations given to us by the management no material discrepancy wasnoticed on such verification.

c. Company has not any immovable property accordingly clause 3(i) (c) of the Companies(Auditor’s Report) Order 2016 is not applicable.

ii. We have been informed that inventories have been physically verified by themanagement at reasonable intervals. In our opinion the frequency of verification isreasonable with regard to the size of company. According to information and explanationsgiven to us by the management no material discrepancy was noticed on such verification.

iii. The company has granted unsecured loan to related company firms or other partiescovered in the register maintained under section 189 of the Companies Act. (a) in ouropinion the terms and conditions of the grant of such loans are not prejudicial to thecompany’s interest;

iv. In respect of loans investments guarantees and security provisions of section185 and 186 of the Companies Act 2013 have been complied with.

v. According to the information and explanation given to us the company has notaccepted the any deposits from the public within the provisions of Section 73 to 76 of theAct read with the Companies (Acceptance of Deposits) Rules 2014 and other relevantprovisions of the Act.

vi. According to the information and explanation given to us maintenance of costrecords under sub-section (1) of section 148 of the Companies Act 2013 in respect of theproduct dealt with by the company as prescribed by central government is not applicable tothe company.

vii. (a) According to the information and explanation given to us the company is notregular in depositing undisputed statutory dues including Provident Fund Employees’State Insurance Income-tax Sales Tax service tax Goods & Service Tax Duty ofCustoms Duty of Excise Value Added Tax Cess and any other statutory dues with theappropriate authorities wherever applicable during the year as per information andexplanations given to us and records examined by us followings are undisputed arrears ofstatutory dues which are outstanding as at the last day of the concerned financial yearfor more than Six months from the date they became payable;

Name of the Statute Nature of Dues Amount (Rs) Period Remarks
Professional Tax Professional Tax 800 F.Y. 2020-21 Unpaid till date
VAT VAT 90228 F.Y. 2017-18 Unpaid till date
Income Tax Act 1961 Tax deducted at source 5474098 F.Y. 2018-19 Unpaid till date
Service Tax Service Tax 20787 F.Y. 2017-18 Unpaid till date
Income Tax Act 1961 Income Tax demand u/s 154 3559500 A.Y. 2018-19 Unpaid till date
Income Tax Act 1961 Income Tax demand u/s 1431a 2945750 A.Y. 2019-20 Unpaid till date

(b) As per the information and explanation given to us there are no disputed duesoutstanding on account of Income Tax sales tax service tax goods and service tax dutyof customs duty of excise value added tax.

viii. According to the records made available to us and information and explanationgiven to us by the management no default have been reported by the lending institution.

Also refer Note No. 3 of the Financial Statements.

ix. The company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and term loans during the year hence clause3(ix) of companies (auditor’s Report) order 2016 is not applicable.

x. According to the information and explanation given to us no fraud by the company oron the company by its officers or employees has been noticed or reported during course ofour audit.

xi. The company has paid/provided managerial remuneration in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theCompanies Act.

xii. According to the information and explanation given to us the company is not anidhi company hence clause 3(xii) of companies (auditor’s Report) order 2016 is notapplicable.

xiii. According to the information and explanation given to us and based on ourexamination of the records of the company all transactions with the related parties arein compliance with sections 177 and 188 of Companies Act 2013 where applicable and thedetails have been disclosed in the Financial Statements as required by the applicableaccounting standards.

xiv. According to the information and explanation 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 hence clause 3 (xiv) of companies (auditor’s Report) order 2016 is notapplicable.

xv. According to the information and explanation given to us and based on ourexamination of the records of the company the company has not entered into non cashtransactions with directors or persons connected with him hence clause 3 (xv) of companies(auditor’s Report) order 2016 is not applicable.

xvi. The company is not required to be registered under section 45-IA of the ReserveBank of India 1934. .

“Annexure B” to the Auditors’ Report

Report on the Internal Financial Controls under Clause (i) of Sub - section 3 ofSection 143 of the Companies Act 2013

We have audited the internal financial controls over financial reporting of RelstructBuildcon Limited as of 31st March 2021 in conjunction with our audit of the standalonefinancial statements of the Company for the year ended on that date.

Management’s Responsibility for Internal Financial Controls

The Company’s management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (‘ICAI’).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 company’s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the “Guidance Note”) and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness.

Our audit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedures selecteddepend on the auditor’s judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company’s internal financial controlssystem 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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorizationsmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorized acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

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

Opinion

In our opinion 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 31st March 2021 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

Place : Ahmedabad For J P M K and Company
Date : 29/06/2021 Chartered Accountants
Jitendra Vageriya
Partner
M.No. 114424
UDIN : 21114424AAAAHB8870

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