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Setubandhan Infrastructure Ltd.

BSE: 533605 Sector: Infrastructure
NSE: SETUINFRA ISIN Code: INE023M01027
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VOLUME 32421
52-Week high 4.09
52-Week low 1.30
P/E
Mkt Cap.(Rs cr) 16
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Setubandhan Infrastructure Ltd. (SETUINFRA) - Auditors Report

Company auditors report

To the Members of

M/s. Setubandhan Infrastructure Limited

(Formerly Known as Prakash Constrowell Limited)

Opinion

We have audited the accompanying Standalone financial statements of M/S.SETUBANDHAN INFRASTRUCTURE LIMITED (Formerly Known as Prakash Constrowell Limited)which comprise the Balance Sheet as at March 31 2022 the Statement of Profit and Loss(including Statement of Other Comprehensive Income) Statement of changes in equity andStatement of cash flows for the year then ended and notes to the financial statementsincluding a summary of significant accounting policies and other explanatory information.In our opinion and to the best of our information and according to the explanations givento us the aforesaid Ind AS standalone financial statements give the information requiredby the Companies Act 2013 (‘the act') in the manner so required and give a trueand fair view in conformity with the Indian Accounting Standards prescribed under section133 of the act read with Companies (Indian Accounting Standard Rules 2015 as amended(‘Ind AS') and other accounting principles generally accepted in India of thestate of affairs of the Company as at 31st March 2022 and its profit totalcomprehensive income its cash flows and changes in equity for the year ended on thatdate.

Basis for Opinion

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 on thestandalone financial statements.

Key Audit Matters

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

Sr. No. Key Audit Matter Auditor's Response
1 Accuracy of recognition measurement presentation and disclosures of revenues and other related balances in view of adoption of Ind AS 115 "Revenue from Contracts with Customers"(new revenue accounting standard) Principal Audit Procedures
The application of the new revenue accounting standard involves certain key judgements relating to identification of distinct performance obligations determination of transaction price of the identified performance obligations the appropriateness of the basis used to measure revenue recognised overall period. We assessed the Company's process to identify the impact of adoption of the new revenue accounting standard.
Additionally new revenue accounting Standard contains disclosures which involves collation of information in respect of disaggregated revenue and periods over which the remaining performance obligations will be satisfied subsequent to the balance sheet date. Our audit approach consisted testing of the design and operating effectiveness of the internal controls and substantive testing as follows:
? Evaluated the design of internal controls relating to implementation of the new revenue accounting standard.
? Selected a sample of continuing and new contracts and tested the operating effectiveness of the internal control relating to identification of the distinct performance obligations and determination of transaction price. We carried out a combination of procedures involving enquiry and observation re-performance and inspection of evidence in respect of operation of these controls.
? Tested the relevant information technology systems' access and change management controls relating to contracts and related information used in recording and disclosing revenue in accordance with the new revenue accounting standard.
? Selected a sample of continuing and new contracts and performed the following procedures:
Read analyzed and identified the distinct performance obligations in these contracts.
Compared these performance obligations with that identified and recorded by the Group.
Considered the terms of the contracts to determine the transaction price including any variable consideration to verify the transaction price used to compute revenue and to test the basis of estimation of the variable consideration.
Samples in respect of revenue recorded for time and material contracts were tested using a combination of approved time sheets including customer acceptances subsequent invoicing and historical trend of collections and disputes.
In respect of samples relating to fixed price contracts progress towards satisfaction of performance obligation used to compute recorded revenue was verified with actual and estimated efforts from the time recording and budgeting systems. We also tested the access and change management controls relating to these systems. Sample of revenues disaggregated by type and service offerings was tested with the performance obligations specified in the underlying contracts.
Performed analytical procedures for reasonableness of revenues disclosed by type and service offerings.
We reviewed the collation of information and the logic of the report generated from the budgeting system used to prepare the disclosure relating to the periods over which the remaining performance obligations will be satisfied subsequent to the balance sheet date.
2 Accuracy of revenues and onerous obligations in respect of fixed price contracts involves critical estimates. Principal Audit Procedures
Estimated effort is a critical estimate to determine revenues and liability for onerous obligations. Our audit approach was a combination of test of internal controls and substantive procedures which included the following:
This estimate has a high inherent uncertainty as it requires consideration of progress of the contract efforts incurred till date and efforts required to complete the remaining contract performance obligations. ? Evaluated the design of internal controls relating to recording of efforts incurred and estimation of efforts required to complete the performance obligations.
? Tested the access and application controls pertaining to time recording allocation and budgeting systems which prevents unauthorized changes to recording of efforts incurred.
? Selected a sample of contracts and through inspection of evidence of performance of these controls tested the operating effectiveness of the internal controls relating to efforts incurred and estimated.
? Selected a sample of contracts and performed a retrospective review of efforts incurred with estimated efforts to identify significant variations and verify whether those variations have been considered in estimating the remaining efforts to complete the contract.
? Reviewed a sample of contracts with unbilled revenues to identify possible delays in achieving milestones which require change in estimated efforts to complete the remaining performance obligations.
? Performed analytical procedures and test of details for reasonableness of incurred and estimated efforts.
3 Evaluation of Uncertain Tax Position Principal Audit Procedures:
- The Group has material uncertain tax positions including matters under dispute which involves significant judgment to determine the possible outcome of these disputes. Obtained details of completed tax assessments and demands for the year ended March 31 2022 from management. We involved our internal experts to challenge the management's underlying assumptions in estimating the tax provision and the possible outcome of the disputes. Our internal experts also considered legal precedence and other rulings in evaluating management's position on these uncertain tax positions. Additionally we considered the effect of new information in respect of uncertain tax positions as at April 1 2021 to evaluate whether any change was required to management's position on these uncertainties.

Information other than the Financial Statements and Auditor reportthereon.

1. The Company's Board of directors is responsible for the preparationof other information. The other information comprises the information included in themanagement discussion and analysis Board's report including Annexures toBoard's report but does not include the standalone financial statements and ourauditor's report thereon.

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

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

4. Based on the work we have performed if we conclude that there ismaterial misstatement of this other information; we are required to report that fact. Wehave nothing to report in this regard.

Responsibility of Management for the Standalone FinancialStatements

The Company's Board of Directors is responsible for the mattersstated in section 134(5) of the Companies Act 2013 ("the Act") with respect tothe preparation of these standalone financial statements that give a true and fair view ofthe financial position financial performance including other comprehensive income changes in equity and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the accounting Standards specified undersection 133 of the Act and Companies (Indian Accounting Standards) Rules2015 as amended. This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding of the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate implementation and maintenance of accounting policies; makingjudgments and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operatingeffectively for ensuring the accuracy and completeness of the accounting records relevantto the preparation and presentation of the financial statement that give a true and fairview and are free from material misstatement whether due to fraud or error. In preparingthe financial statements management is responsible for assessing the Company'sability to continue as a going concern disclosing as applicable matters related togoing concern and using the going concern basis of accounting unless management eitherintends to liquidate the Company or to cease operations or has no realistic alternativebut to do so.

Auditor's Responsibilities for the Audit of the StandaloneFinancial Statements

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

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

? Identify and assess the risks of material misstatement of thestandalone financial statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control. ? 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 theability of the Group to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the standalone financial statements or if such disclosures areinadequate to modify our opinion. Our conclusions are based on the audit evidenceobtained up to the date of our auditor's report. However future events or conditionsmay cause the Group to cease to continue as a going concern.

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

? Obtain sufficient appropriate audit evidence regarding the financialinformation of the entities or business activities within the Group t express an opinionon the standalone financial statements. We are responsible for the direction supervisionand performance of the audit of the financial statements of such entities included in thestandalone financial statements.

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

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

(ii) to evaluate the effect of any identified misstatements inthe financial statements.

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

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

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

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(11) of section 143 of the Companies Act 2013 we give in the Annexure A statementon the matters specified in paragraphs 3 and 4 of the Order to the extent applicable.

2. (A) As required by Section 143(3) of the Act we report that: a. Wehave sought and obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purposes of our audit.

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

c. The Balance Sheet the Statement of Profit and Loss including OtherComprehensive income and the Cash Flow Statement dealt with by this Report are inagreement with the books of account.

d. In our opinion the aforesaid Standalone Ind AS financial statementscomply with the Accounting Standards specified under Section 133 of the Act read withRule 7 of the Companies (Accounts) Rules 2014.

e. On the basis of the written representations received from thedirectors as on 31st March 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on 31st March 2022 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 overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B". Our report expresses anunmodified opinion on the adequacy and operating effectiveness of the Company'sinternal financial controls over financial reporting; and

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

? The Company has disclosed the impact of pending litigations on itsfinancial position in its financial statements Refer Note 29(A) of the Standalonefinancial statement.

? The Company does not have any long-term Contract. The Company was notrequired to make any provisions for material foreseeable losses.

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

? i. The management has represented that to the best of its knowledgeand belief no funds have been advanced or loaned or invested (either from borrowed fundsor share premium or any other sources or kind of funds) by the Company to or in any otherpersons or entities including foreign entities ("Intermediaries") with theunderstanding whether recorded in writing or otherwise that the Intermediary shall:

Directly or indirectly lend or invest in other persons or entitiesidentified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalfof the Company; or

Provide any guarantee security or the like to or on behalf of theUltimate Beneficiaries.

ii. The management has represented that to the best of its knowledgeand belief o funds have been received by the Company from any persons or entitiesincluding foreign entities ("Fund Parties") with the understanding whetherrecorded in writing or otherwise that the Company shall:

Directly or indirectly lend or invest in other persons or entitiesidentified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalfof the Funding Party; or

Provide any guarantee security or the like from or on behalf of theUltimate Beneficiaries; and iii. Based on such audit procedures as considered reasonableand appropriate in the circumstances nothing has come to our notice that has caused us tobelieve that the representations under sub-clause d (i) and d (ii) contain any materialmisstatement.

? During the year the Company has not declared or paid any dividend.

(C) With respect to the matter to be included in the Auditor'sReport under

Section 197 (16) of the Act: In our opinion and according to theinformation and explanations given to us the remuneration paid by the Company to itsdirectors during the current year is in accordance with the provisions of Section 197 ofthe Act. The remuneration paid to any director is not in excess of the limit laid downunder Section 197 of the Act. The Ministry of Corporate Affairs has not prescribed otherdetails under Section 197(16) of the Act which are required to be commented upon by us.

For M/s. GRANDMARK & Associates

Chartered Accountants

FRN: 011317N

Sd/-

CA Vinit Picha

Partner

M. No. 159938

Place: Nashik

Date: 30.05.2022

UDIN: 22159938ANLYOX5613

Annexure - A to the Auditors' Report

The Annexure referred to in our Independent Auditor's Report tothe members of Setubandhan Inrastructure Limited on standalone Ind-AS financialstatements for the year Ended on 31/03/2022. We report that:

1) In respect of fixed assets:

a) (A) The Company is maintaining proper record to show fullparticulars including quantitative details and situation of all property plant andequipment assets on the basis of available information.

(B) The Company has maintained proper records showing full particularsof Intangible Assets; b) We are informed that the company has a regular programme ofphysical verification of its property plant and equipment by which all the propertyplant and equipment are verified in a phased manner over a period of three years. Inaccordance with this programme certain property plant and equipment were verified duringthe year and no material discrepancies were noticed on such verification. In our opinionthis periodicity of physical verification is reasonable having regard to size of theCompany and the nature of its assets.

c) According to the information and explanations given to us and on thebasis of our examination of the records of the Company the title deeds of immovableproperties (other than immovable properties where the Company is the lessee and the leaseagreements are duly executed in favour of the lessee) disclosed in the standalonefinancial statements are held in the name of the Company.

d) According to the information and explanations given to us and on thebasis of our examination of the records of the Company the Company has not revalued itsproperty plant and equipment (including Right-of-use assets) or Intangible assets or bothduring the year.

e) According to the information and explanations given to us and on thebasis of our examination of the records of the Company there are no proceedings initiatedor pending against the Company for holding any Benami Property under the Prohibition ofBenami Property Transactions Act 1988 and rules made there under.

2) In respect of its inventories:

a) As explained to us inventories i.e. WIP of construction activityhave been physically verified by the management at reasonable intervals during the year.In our opinion the frequency of such verification is reasonable and procedures andcoverage as followed by management were appropriate. No discrepancies were noticed onverification between the physical stocks and the book records that were 10% or more in theaggregate for each class of inventory.

b) As per the information given to us and on the basis of ourexamination of the records of the Company the Company has not been sanctioned workingcapital limits in excess of five crore rupees in aggregate from banks.

c) The company is maintaining proper records of inventory. Thediscrepancies noted on physical verification of inventories as compared to books recordswere not material and have been properly dealt with in books of accounts.

3) According to the information and explanations given to us and on thebasis of our examination of the records of the Company the Company has not made anyinvestments provided guarantee or security or granted any advances in the nature ofloans secured or unsecured to companies firms limited liability partnerships or anyother parties during the year.

Based on the audit procedures carried on by us and as per theinformation and explanations given to us the Company has not provided any loans/advancesin the nature of loans or stood guarantee or provided security to any other entity.Further the company has not made any investments or provided guarantees or securitiesduring the year accordingly sub-clause (a) (b) (c) (d) (e) and (f) of this clause ofthe order is not applicable.

4) 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.

5) According to the information and explanation given to us theCompany has not accepted any deposits from the public and accordingly paragraph 3(v) ofthe Order is not applicable.

6) As informed to us the Central Government has not prescribedmaintenance of the cost records under section 148(1) of the Companies Act 2013accordingly clause 3 (vi) of the order is not applicable.

7) In respect of Deposit of Statutory Liability :

a) According to the information and explanations given to us and therecords of the company examined by us the company is generally regular in depositing withappropriate authorities undisputed statutory dues including Provident Fundemployee's state insurance income tax service tax sales tax tax deducted atsource cess and other material statutory dues applicable to it except as mentioned below:

According to the information and explanations given to us and therecords of the company examined by us TDS amounting to Rs. 19069808/- is payableundisputed which were in arrears as at 31st March 2022 for a period of morethan six months from the date they become payable.

b) According to the information and explanations given to us thefollowing dues of income tax have not been deposited by the Company on account ofdisputes:

Name of Statue Nature of Dues Amount Rs. (Rs. In Lakh) Forum where Dispute is Pending
Income Tax Act 1961 Income Tax Assessment dues under Section 153A of the act 2265.46 Assistant Commissioner of Income Tax (Appeals)
Employees' State Insurance Act 1948 Demand raised by Appellate Authority of Employee State Insurance Corporation (ESIC) 5.37 Industrial Labour Court Nashik

8) According to the information and explanation given to us and on thebasis of our examination of the records of the Company the Company has not surrendered ordisclosed any transactions previously unrecorded as income in the books of account inthe assessments under the Income Tax Act 1961 as income during the year

9) a) According to the records of the company examined by us andinformation and explanations given to us the company has defaulted in repayment of loansor other borrowings to any lender as at the balance sheet date. The details of which hasbeen mentioned below:

Name of bank or Financial Institution Type of facility Outstanding amount as on 31.03.2022
State bank of India Cash Credit Facility Rs 6526.04 Lakhs
Andhra bank Cash Credit Facility Rs 597.89 Lakhs

b) According to the information and explanations given to us and on thebasis of our examination of the records of Company the Company has not been declared as awillful defaulter by any bank or financial institution or other lender.

c) According to the information and explanations given to us and on thebasis of our examination of the records of Company the Company has not obtained any Termloans during the year accordingly clause 3(ix)(c) of the Order is not applicable.

d) According to the information and explanations given to us and on thebasis of our examination of the records of Company we report that no funds have beenraised on short-term basis during the year by the Company. Accordingly clause 3(ix)(d) ofthe Order is not applicable.

e) According to the information and explanations given to us and on thebasis of our examination of the records of Company we report that the Company has nottaken any funds from any entity or person on account of or to meet the obligations of itssubsidiaries as defined under the Companies Act 2013. Accordingly clause 3(ix)(e) of theOrder is not applicable.

f) According to the information and explanations given to us and on thebasis of our examination of the records of Company we report that the Company has notraised loans during the year on the pledge of securities held in its subsidiaries asdefined under the Companies Act 2013. Accordingly clause 3(ix)(f) of the Order is notapplicable.

10) a) The Company has not raised any money by way of initialpublic offer or the further public offer (including debt instruments) during the year.Accordingly reporting requirements of this clause is not applicable

b) As per explanations given to us; the company has not made anypreferential allotment or private placement of shares or convertible debentures (fullypartially or optionally convertible) during the year. Accordingly reporting requirementof this clause is not applicable.

11) a) Based on examination of the books and records of the Company andaccording to the information and explanations given to us considering the principles ofmateriality outlined in Standards on Auditing we report that no fraud by the Company oron the Company has been noticed or reported during the course of the audit.

b) According to the information and explanations given to us no reportunder sub- section (12) of Section 143 of the Companies Act 2013 has been filed by theauditors in Form ADT-4 as prescribed under Rule 13 of Companies (Audit and Auditors)Rules 2014 with the Central Government.

c) No whistle-blower complaints during were received during the year bythe company.

12) In our Opinion and according to the information and explanationsgiven to us the Company is not a Nidhi company. Accordingly paragraph 3(xii) of theOrder is not applicable.

13) According to the information and explanations given to us and basedon our examination of the records of the Company transactions with the related partiesare in compliance with Sections 177 and 188 of the Act where applicable and details ofsuch transactions have been disclosed in the financial statements as required by theapplicable accounting standards.

14) a) Based on information and explanations provided to us and ouraudit procedures in our opinion the company has an internal audit system commensuratewith the size and nature of its business.

b) We have considered the internal audit reports of the Company issuedtill date for the period under audit.

15) 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.

16) a) The Company is not required to be registered under section 45-IAof the Reserve Bank of India Act 1934. Accordingly clause 3(xvi)(a) of the Order is notapplicable.

b) The Company is not required to be registered under Section 45-IA ofthe Reserve Bank of India Act 1934. Accordingly clause 3(xvi)(b) of the Order is notapplicable.

c) The Company is not a Core Investment Company (CIC) as defined in theregulations made by the Reserve Bank of India. Accordingly clause 3(xvi)(c) of the Orderis not applicable. d) According to the information and explanations provided to us duringthe course of audit the Group does not have any CIC. Accordingly the requirements ofclause 3(xvi)(d) are not applicable.

17) The company has not incurred cash losses in the currentfinancial year and the immediately preceding financial year

18) There has been no resignation of the statutory auditorsduring the year. Accordingly reporting requirements of this clause are not applicable.

19) In our opinion and according to information and explanationsgiven to us based on the financial ratios aging and expected dates of realization offinancial assets and payment of financial liabilities other information accompanying thefinancial statements knowledge of the Board of Directors and management plans there isno material uncertainty that exists as on the date of the audit report that company iscapable of meeting its liabilities existing at the date of the balance sheet as and whenthey fall due within one year from the balance sheet date

20) As per the provisions of section 135(5) the company is notmandatorily required to constitute a Corporate Social Responsibility Committee and spendfunds for the Corporate Social Responsibility (CSR) activities. Accordingly reportingrequirements of this clause is not applicable.

21) According to information and explanations given to us thecompany is not required to prepare the consolidated financial statements. Accordinglyreporting requirements of this clause is not applicable.

For M/s. GRANDMARK & Associates

Chartered Accountants

FRN: 011317N

Sd/-

CA Vinit Picha

Partner

M. No. 159938

Place: Nashik

Date: 30.05.2022

UDIN: 22159938ANLYOX5613

Annexure B to Independent Auditors' Report

Referred to in paragraph 2(f) of the Independent Auditors' Reportof even date to the members of Setubandhan Infrastructure Limited on the Ind-AS Standalonefinancial statements for the year ended 31 March 2022

Report on the internal financial controls under clause (i) ofsub-section 3 of section 143 of the Act

1. We have audited the internal financial controls over financialreporting of

Setubandhan Infrastructure Limited (Formerly known as PrakashConstrowell Limited). (‘the Company') as of 31 March 2022 in conjunctionwith our audit of the Ind-AS standalone financial statements of the Company for the yearended on that date.

Management's responsibility for internal financial controls

2. 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 Act.

Auditors' responsibility

3. Our responsibility is to express an opinion on the company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls Over

Financial Reporting (the ‘Guidance Note') and the Standardson Auditing deemed to be prescribed under section 143(10) of the Act to the extentapplicable to an audit of internal financial controls both applicable to an audit aninternal financial controls and both issued by the ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively in all material respects.

4. Our audit involves performing procedures to obtain audit evidenceabout the adequacy of the internal financial controls system over financial reporting andtheir operating effectiveness. Our audit of internal financial controls over financialreporting included obtaining an understanding of internal financial controls overfinancial reporting assessing the risk that a material weakness exists and testing andevaluating the design and operating effectiveness of internal control based on theassessed risk. The procedures selected depend on the auditor's judgment includingthe assessment of the risks of material misstatement of the financial statement whetherdue to fraud or error.

5. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting.

Meaning of internal controls over financial reporting

6. A company's internal financial control over financialreporting is a process designed to provide reasonable assurance regarding the reliabilityof financial reporting and the preparation of financial statement for external purposes inaccordance with generally accepted accounting principles. A company's internalfinancial control over financial reporting includes those policies and procedures that (1)pertain to the maintenance of records that in reasonable detail accurately and fairlyreflect the transactions and dispositions of the assets of the Company; (2) providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorizations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition use ordisposition of the company's assets that could have a material effect on thefinancial statements.

Inherent Limitations of internal financial controls over financialreporting

7. Because of the inherent limitations of internal financialcontrols over financial reporting including the possibility of collusion or impropermanagement override of controls material misstatements due to error or fraud may occurand not be detected. Also projections of any evaluation of the internal financialcontrols over financial reporting to future periods are subject to the risk that theinternal financial control over financial reporting may become inadequate because ofchange in conditions or that the degree of compliance with the policies or procedures maydeteriorate.

Opinion

8. In our opinion the Company has in all material respects anadequate internal financial controls system over financial reporting and such internalfinancial controls over financial reporting were operating effectively as at 31 March2022 based on the internal control over financial reporting criteria established by theCompany considering the essential components of internal control stated in the GuidanceNote on Audit of Internal Financial Controls Over Financial Reporting issued by theInstitute of Chartered Accountants of India.

For M/s. GRANDMARK & Associates

Chartered Accountants

FRN: 011317N

Sd/-

CA Vinit Picha

Partner

M. No. 159938

Place: Nashik

Date: 30.05.2022

UDIN: 22159938ANLYOX5613

Setubandhan Infrastructure Limited

(Formerly known as Prakash Constrowell Limited)

.