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Shri Krishna Devcon Ltd.

BSE: 531080 Sector: Infrastructure
NSE: N.A. ISIN Code: INE997I01012
BSE 00:00 | 11 Jun 16.89 0.34
(2.05%)
OPEN

15.85

HIGH

16.99

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15.00

NSE 05:30 | 01 Jan Shri Krishna Devcon Ltd
OPEN 15.85
PREVIOUS CLOSE 16.55
VOLUME 1757
52-Week high 28.90
52-Week low 10.88
P/E 13.20
Mkt Cap.(Rs cr) 47
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 15.85
CLOSE 16.55
VOLUME 1757
52-Week high 28.90
52-Week low 10.88
P/E 13.20
Mkt Cap.(Rs cr) 47
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Shri Krishna Devcon Ltd. (SHRIKRISHNA) - Auditors Report

Company auditors report

To

The Members of Shri Krishna Devcon Limited

Report on the Audit of the Standalone Ind AS Financial Statements

Opinion

We have audited the accompanying standalone Ind AS financial statements of Shri KrishnaDevcon Limited ("the Company") which comprise the Balance sheet as at March 312020 the Statement of Profit and Loss including the statement of Other ComprehensiveIncome the Cash Flow Statement and the Statement of Changes in Equity for the year thenended and notes to the financial statements including a summary of significantaccounting policies and other explanatory information. In our opinion and to the best ofour information and according to the explanations given to us the aforesaid standalone

Ind AS financial statements give the information required by the Companies Act 2013as amended ("the Act") in the manner so required and give a true and fair viewin conformity with the accounting principles generally accepted in India of the state ofaffairs of the Company as at March 31 2020 its profit including other comprehensiveincome its cash flows and the changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone Ind AS financial statements in accordance withthe Standards on Auditing (SAs) as specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the ‘Auditor'sResponsibilities for the Audit of the Standalone Ind AS Financial Statements' section ofour report. We are independent of the Company in accordance with the ‘Code of Ethics'issued by the Institute of Chartered Accountants of

India together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules there under and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion on the standalone Ind ASfinancial statements.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the standalone Ind AS financial statements for the financialyear ended March 31 2020. These matters were addressed in the context of our audit of thestandalone Ind AS financial statements as a whole and in forming our opinion thereon andwe do not provide a separate opinion on these matters.

Revenue recognition - refer note 2.5 (i) to the standalone financial statements

Key Audit Matters How the matter was addressed in our audit
Measurement of revenue recorded from sale of residential units and commercial units Our audit procedures on revenue recognition included the following:
Revenue from real-estate contracts is recognised over a period of time in accordance with the requirements of the Ind ? We read the accounting policy for revenue recognition of the Company and assessed compliance with the requirements of Ind AS 115.
AS 115 using the percentage of completion method. This determination is based on the proportion that contract costs actually incurred bear to the estimated total contract costs and requires significant judgments including identification of contractual obligations the Company's rights to receive payments for performance completed till date changes in scope and consequential revised contract price. ? We assessed the management evaluation of recognizing revenue from real estate contracts over a period of time in accordance with the requirements under Ind AS 115. ? We tested controls over revenue recognition with specific focus on determination of progress of completion recording of costs incurred and estimation of costs to complete the remaining contract obligations
Revenue recognition is significant to the financial statements based on the quantitative materiality. The adoption of Ind AS 115 including the impact to retained earnings as at the transition date as per the modified retrospective method requires significant judgment in determining when ‘control' of the asset underlying the performance obligation is transferred to the customer. Further the application of percentage of completion method involves significant judgment as explained above. Accordingly we regard these as key audit matter ? We inspected a sample of underlying customer contracts performed retrospective assessment of costs incurred with estimated costs to identify significant variations and assess whether those variations have been considered in estimating the remaining costs-to-complete and consequential determination of stage of completion.
? We tested controls and management processes pertaining to transfer of control in case of real estate projects.
? We performed test of details on a sample basis and inspected the underlying customer contracts/ agreements evidencing the transfer of control of the asset to the customer based on which revenue is recognised over a period of time

Other Information

The Company's Management and Board of Directors are responsible for the otherinformation. The other information comprises the information included in the Company'sannual report but does not include the standalone financial statements and our auditors'report thereon. Our opinion on the standalone financial statements does not cover theother information and we do not express any form of assurance conclusion thereon. Inconnection with our audit of the standalone financial statements our responsibility is toread the other information and in doing so consider whether the other information ismaterially inconsistent with the standalone financial statements or our knowledge obtainedin the audit or otherwise appears to be materially misstated. If based on the work wehave performed we conclude that there is a material misstatement of this otherinformation we are required to report that fact. We have nothing to report in thisregard.

Management's Responsibility for the 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 preparation ofthese standalone Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Indian Accounting Standards (Ind AS) prescribedunder Section 133 of the Act read with the Companies (Indian Accounting Standards) Rule2015 as amended. This responsibility also includes maintenance of adequate accountingrecords in accordance with the provisions of the Act for safeguarding the assets of theCompany and for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe standalone Ind AS financial statements that give a true and fair view and are freefrom material misstatement whether due to fraud or error.

In preparing the standalone Ind AS financial statements management is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessmanagement either intends to liquidate the Company or to cease operations or has norealistic alternative but to do so. The Board of Directors are also responsible foroverseeing the Company's financial reporting process.

Auditor's Responsibilities 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 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 financial statements. As part ofan audit in accordance with SAs we exercise professional judgment and maintainprofessional skepticism throughout the audit. We also: ? Identify and assess the risks ofmaterial misstatement of the standalone financial statements whether due to fraud orerror design and perform audit procedures responsive to those risks and obtain auditevidence that is sufficient and appropriate to provide a basis for our opinion. The riskof not detecting a material misstatement resulting from fraud is higher than for oneresulting from error as fraud may involve collusion forgery intentional omissionsmisrepresentations or the override of internal control. ? Obtain an understanding ofinternal control relevant to the audit in order to design audit procedures that areappropriate in the circumstances. Under Section 143(3)(i) of the Companies Act 2013 weare also responsible for expressing our opinion on whether the Company has adequateinternal financial controls with reference to financial statements in place and theoperating effectiveness of such controls. ? Evaluate the appropriateness of accountingpolicies used and the reasonableness of accounting estimates and related disclosures madeby management.

? Conclude on the appropriateness of management's use of the going concern basis ofaccounting 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 ofthe standalone financial statements including the disclosures and whether the standalonefinancial statements represent the underlying transactions and events in a manner thatachieves fair presentation. We communicate with those charged with governance regardingamong other matters the planned scope and timing of the audit and significant auditfindings including any significant deficiencies in internal control that we identifyduring our audit. 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 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 auditors' 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

1. As required by the Companies (Auditor's Report) Order 2016 (‘the Order')issued by the Central Government of India in terms of Section 143 (11) of the Act we givein the "Annexure A" a statement on the matters specified in paragraphs 3 and 4of 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 ouropinion proper books of account as required by law have been kept by the Company so faras it appears from our examination of those books; (c) The standalone balance sheet thestandalone statement of profit and loss including other comprehensive income thestandalone statement of cash flows and the standalone statement of changes in equity dealtwith by this report are in agreement with the books of account; (d) In our opinion theaforesaid standalone financial statements comply with the Indian Accounting Standards (IndAS) specified under Section 133 of the Act; (e) On the basis of the writtenrepresentations received from the directors as on 31 March 2020 taken on record by theBoard of Directors none of the directors is disqualified as on 31 March 2020 from beingappointed as a director in terms of Section 164 (2) of the Act; and (f) With respect tothe adequacy of the internal financial controls with reference to the standalone financialstatements of the Company and the operating effectiveness of such controls refer to ourseparate Report in "Annexure B".

(g) In our opinion the managerial remuneration for the year ended March 31 2020 hasbeen paid / provided by the Company to its directors in accordance with the provisions ofsection 197 read with Schedule V to the Act;

(h) With respect to the other matters to be included in the Auditors' Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us: i. theCompany has disclosed the impact of pending litigations as at 31 March 2020 on itsfinancial position in its standalone financial statements Refer Note 30 to the standalonefinancial statements; ii. the Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses; iii. there hasbeen no delay in transferring amounts required to be transferred to the InvestorEducation and

Protection Fund by the Company during the year ended 31 March 2020.

For M A K & Associates
Chartered Accountants
Firm Registration No. 003060C
Ravindra Maheshwari
Place: Indore Partner
Date: 28.07.2020 M. No. 418118

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT OF SHRI KRISHNA DEVCONLIMITED FOR THE YEAR

ENDED 31ST MARCH 2020. (Refer to in our report of even date) i. a) TheCompany has maintained proper records showing full particulars including quantitativedetails and situation of fixed assets. b) The fixed assets were physically verified duringthe year by the Management in accordance with a regular programme of verification whichin our opinion provides for physical verification of all the fixed assets at reasonableintervals. According to the information and explanation given to us no materialdiscrepancies were noticed on such verification. c) According to the information andexplanations given to us by management the Company does not have any immovable propertyin fixed asset. ii. The inventory includes land plots of land completed buildings orapartments land under development building under development etc. The inventory has beenphysically verified by the management during the year. In our opinion the frequency ofsuch verification is reasonable and no material discrepancies were noticed on physicalverification. iii. In our opinion and according to information and explanations given tous 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 paragraph 3(iii) of the Order is not applicable tothe Company. iv. In our opinion and According to the information and explanation gives tous the company has complied with the provisions of section 185 and 186 of the Act. v. Thecompany has not accepted any deposits from the public in accordance with the provisions ofsections 73 to 76 of the Act and the rules framed there under. vi. We are informed thatthe maintenance of cost records has not been specified by the Central Government undersub- section (1) of section 148 of the Act. vii. a) According to the information andexplanations given to us the Company is generally regular in depositing undisputedstatutory dues applicable to it including sales-tax service tax value added tax GSTcess and any other statutory dues with the appropriate authorities. According to theinformation and explanations given to us no undisputed amount payable in respect ofprovident fund employees' state insurance income-tax sales-tax service tax duty ofcustoms duty of excise value added tax GST cess and any other undisputed statutorydues were outstanding at the end of the year for a period of more than six months from thedate they become payable. b) According to information and explanations given to us thefollowing dues have not been deposited by the company on the account of disputes:-

S.No. Name of Statute Nature of Dues Period to which the amount relates Amount (`) Forum where dispute is pending
1. Income Tax Act 1961 Income Tax F.Y. 2010-11 1484142 CIT (Appeal) Bhopal
2. Income Tax Act 1961 Income Tax F.Y. 2011-12 32183630 CIT (Appeal) Bhopal
3. Income Tax Act 1961 Income Tax F.Y. 2012-13 8526060 CIT (Appeal) Bhopal
4. Income Tax Act 1961 Income Tax F.Y. 2013-14 16699295 CIT (Appeal) Bhopal
5. Income Tax Act 1961 Income Tax F.Y. 2014-15 3119892 CIT (Appeal) Bhopal
6. Income Tax Act 1961 Income Tax F.Y. 2015-16 41447121 CIT (Appeal) Bhopal
7. Income Tax Act 1961 Income Tax F.Y. 2016-17 10552928 CIT (Appeal) Bhopal

viii. The company has not defaulted in repayment of dues to any Financial Institutionor Bank. The company has no debenture holders. ix. According to the information andexplanations given by the management the Company has utilized the money raised by way ofterm loans for the purpose for which they were raised. According to the information andexplanations given by the management the Company has not raised any money way of initialpublic offer/ further public offer (including debt instruments). x. To the best ourknowledge and according to the information and explanations given to us no fraud by theCompany or on the company by its officers and employees has been noticed or reportedduring the year. xi. According to the information and explanations given to us and basedon the examination of records of the company the company has paid or provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of section 197 read with schedule V to the Companies Act. xii. According to theinformation and explanations given to us the company is not a nidhi company. Accordinglyparagraph 3(xii) of the Order is not applicable. xiii. According to the information andexplanations given to us and based on our examinations of the records of the

Company transactions with the related parties are in compliance with sections 177 and188 of the Act where applicable. The details of such related party transactions have beendisclosed in the financial statements as required by applicable Ind AS. xiv. According tothe information and explanations give to us and based on our examination of the recordsthe Company has not made any preferential allotment or private placement of shares orfully or partly convertible debentures during the year. xv. According to the informationand explanations given to us and based on our examination of the records the

Company has not entered into non-cash transactions with directors or persons connectedwith him. Accordingly paragraph 3(xv) of the Order is not applicable. xvi. According tothe information and explanations given to us the Company is not required to be registeredunder

Section 45-IA of the Reserve Bank of India Act 1934.

For M A K & Associates
Chartered Accountants
Firm Registration No. 003060C
Ravindra Maheshwari
Place: Indore Partner
Date: 28.07.2020 M. No. 418118

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT OF SHRI KRISHNA DEVCONLIMITED FOR THE YEAR

ENDED 31ST MARCH 2020. (Refer to in our report of even date)

Report on the internal financial controls under clause (i) of sub-section 3 of section143 of the Act.

We have audited the internal financial controls over financial reporting of ShriKrishna Devcon Limited ("the Company") as of 31 March 2020 in conjunction withour audit of the standalone Ind AS financial statements of the Company for the year endedon 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 controls over financial reporting criteriaestablished by the Company considering the essential components of internal controlsstated in the Guidance Note on Audit of Internal Financial Controls over FinancialReporting issued by the Institute of Chartered Accountants of India ("ICAI").These responsibilities include the design implementation and maintenance of adequateinternal financial controls that were operating effectively for ensuring the orderly andefficient conduct of its business including adherence to Company's policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013 ("theAct").

Auditor's 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") issued by the Institute of Chartered Accountants of Indiaand the Standards on

Auditing prescribed under Section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls. 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. Our audit involves performing procedures to obtainaudit evidence about the adequacy of the internal financial controls system over financialreporting and their operating effectiveness. Our audit of internal financial controls overfinancial reporting included obtaining an understanding of internal financial controlsover financial reporting assessing the risk that a material weakness exists and testingand evaluating the design and operating effectiveness of internal controls based on theassessed risk. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto 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 financialcontrol system over financial reporting.

Meaning of internal financial controls over financial reporting

A company's internal financial controls 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 controls 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 authorizations ofmanagement 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 controlsover 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 control system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31 March 2020 based on theinternal controls over financial reporting criteria established by the Company consideringthe essential components of internal controls stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by Institute of CharteredAccountants of India.

For M A K & Associates
Chartered Accountants
Firm Registration No. 003060C
Ravindra Maheshwari
Place: Indore Partner
Date: 28.07.2020 M. No. 418118