To the Membors of
Sri Krishna Constructions (India) Limited
Report on tho Audit of tho Financial Stntomonts
Opinion
I have audited the financial statements of Sri Krishna Constructions (India) Limited
("the Company), which comprise the Balance Sheet as at March 31. 2020. the Stotemont
of Profit and Loss (including Other Comprehensive Income), tho Statement of Changes in
Equity and tho Statement of Cash Flows for tho year ended on that date, and notes lo the
financial statement Including a summary of the significant accounting policies and other
explanatory information (hereinafter referred lo ns the financial statements)
In my opinion and to Ihe best of my information and according to the explanations given
In mo. the aforesaid financial statements give the information required by the Companies
Act. 2013 ("the Act") in the manner uo required and give a true and fail view in
conformity with the Indian Accounting Standards prescribed under section 133 of the Act
tend with the Companies (Indian Accounting Standards) Rules. 2015. as amended, find
AS") and other accounting principles generally accepted In India, of the state of
affairs of the Company ns at March 31. 2020, tho profit and total comprehensive income,
changes in equity and its cash flows for the year ondod on that dote
Basis for Opinion
1 conducted my audit of tho financial statements in accordance with tho Standards on
Auditing specified under section 143(10) of the Act (SAs) My responsibilities under those
Standards are further described in the Auditor s Responsibilities for the Audit of the
Financial Statements section of my report. I am independent of tho Company in accordance
with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI)
together with the independence requirements that are relevant lo my audit of Ihe financial
statements under tlie provisions of the Act and Ihe Rules made thereunder, and I have
fulfilled my other ethical responsibilities in accordance with these requirements and the
ICAIs Code of Ethics I behove that the audit evidence I have obtained is Sufficient and
appropriate to provide a basis for my audit opinion on the financial statements
Key Audit Matters
Koy audit matters .ire those matters that, in my professional judgmunl. were of most
significance in my audit of the financial Ginteincmto of the current period These /natters
woro addressed in the context of my audit of tlwj linancial sbiternonls as a wltole. and
in forming my opinion thereon, and I do not provide a separate opinion on those matters I
have determined that there are no key audit matters to communicate in my report
Information Other than the Financial Statements and Auditors Report Thereon
The Company s Board of Directors is lesponsiblo foi the preparation of iho other
information. The oilier information comprises tfie information included m tho Management
Discussion ;md Aiwiiyuis. Boards Report inclutlii>g Annefcures to Boards Report.
Business Responsibility Report. Corporate Governance and Shareholders Information, but
docs not include tho finnnqnl statomonts and my auditors report
thereon,
My opinion on the financial statements docs not cover the other information and I do
not express any form of assurance conclusion thereon
In connection with my audit of the financial statements, my responsibility is to read
the othor information and. In doing so. consider whether the othor information is
materially inconsistent with the financial statements or my Knowledge obtained during the
course of my audit or otherwise appears to be materially misstated.
If based on the work I have performed, I conclude that there Is a malerial misstatement
of this other information, I am required to report that fact I have nothing to report in
this regard.
Managements Responsibility for the Financial Statomonls
The Companys Board of Directors is responsible for the matters statod in section
134(5) of the Act with respect to the preparation of these financial statements that give
a true and fair viow of tho financial position financial performance, total comprehensive
income changes In equity and cash flows of the Company in accordance with the Ind AS and
other accounting principles generally accepted in India This responsibility also includes
maintenance of adequate accounting records in accordance with the provisions of the Act
for safeguarding the assets of the Company and for preventing and detecting frauds and
other irregularities; selection and application of appropriate accounting policios, making
judgments and estimates that are reasonable and prudent, and design, Implementation and
maintenance of adequate internal Financial controls, that were operating effectively for
ensunng the accuracy and completeness of Ihe accounting records, relevant to the
preparation and presentation of the financial statements that give a true and fair view
and are free from material misstatement, whether due to fraud or error
In preparing the financial statements, management is responsible for assessing tho
Companys ability to continue as a going concern, disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless management
either intends (o liquidate ihe Company or to cease operations, or has no realistic
alternative but to do so
The Board of Directors are responsible for overseeing the Companys Financial reporting
process
Auditors Responsibilities for the Audit of the Financial Statements
My objectives are lo obtain reasonable assurance about whether Ihe financial statements
as a whole are free from material misstatement whether due to fraud or error, and to rssue
an auditors report that includes my opinion. Reasonable assurance is a high lovol of
assurance, but is not a guarantee that an audit conducted in accordance with SAs will
always detect a material misstatement when it exists Misstatements can arise from fraud or
error and are considered material if, individually or In the aggregate. Urey could
reasonably be expected to influence the economic decisions of users taken on the busts of
these Financial statements
As part of an audit in accordance with SAs, I exorcise professional judgment and
maintain professional scepticism throughout the audit I also
• Identify and assess the risks of material misstatement of tlie fnunci.il
statements, whether due to fraud or error, design and perform audit procedures responsive
to those risks, and ohtaln audit evidence that is sufficient and appropriate to provide a
basts for my opinion. The risk of not detecting a material misstatement resulting from
fraud is highm Ilian for one* resulting from as fraud may involve collusion, forgery.
intentional omissions, misrepresentations, or the ovemde of internal control.
• Obtain an understanding of internal financial controls relevant to the audit in
order to design audit procedures that are oppropnato in the circumstances Under section
143(3)(1) of the Act, I am also responsible for expressing my opinion on whether the
Company has adequate intemnl financial controls system in place and the operating
effectiveness of such controls.
• Evaluate the appropriateness of accounting policies used and the reasonableness
of accounting estimates and related disclosures mode by management
• Conclude on the appropriateness of managements use of the going concern basis
of accounting and. based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Companys
ability to continue as a going concern. If I conclude that a material uncertainty exists.
I am required to draw attention In my auditors report to the related disclosures in the
financial statements or. if such disclosures are Inadequate, to modify my opinion. My
conclusions are based on the audit evidence obtained up to the date of my auditors
report. However, future events or conditions may cause the Company to cease to continue as
a going concern.
• Evaluate me overall presentation, structure and content of the financial
statements, including the disclosures, and whether the financial statements represent me
underlying transactions and events In a manner that achieves fair presentation
l communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that Identify during my audit
I also provide those charged with governance with a statement that I havo complied with
relevant ethical requirements regarding independence, and to communicate with Ihnm all
relationships and other matters that may reasonably bo thought to bear on my independence,
and whore applicable, related safeguards
From the matters communicated with those charged with governance, I determine those
matters that were of most significance in Ihe audit of the financial statements of Ihe
current period and are therefore the Key audit mailers. I desenbe these matters in my
auditors report unless law or regulation precludes public disclosure about Ihe matter or
when, in extremely rare circumstances. I determine that a matter should not be
communicated in my report because the adverse consequences of doing so would reasonably be
expected Ira outweigh the public Interest benefits of such communication
Report on Other Legal and Regulatory Requirements
1) As required by the Companies (Auditors Repnn) Order. 2010 ("the Order")
issued by the Central Government in terms of Section 143(11} of the Act, 1956 give in
Annoxuro A a statement on Ihe matters specified in paragraphs 3 and 4 of the Order
2) As required by Section 143(3) of the Act. based on my audit I report that
a) I have sought and obtained alt the information and explanations which to the best of
my knowledge and belief were necessary for ihe purposes of my audit
b) In my opinion, proper books of account as required by law have been kept by the
Compmiy so tin ar. it appears from my examination of IhoDO books
c) The Balance Slate!, the Statement of Profit and Loss including Other Comprehensive
Income. Statement ol Changes in Equity and the Statement of Cash Flow deal! will by the
Report are in agreement with the relevant books of account
d) In my opinion, the aforesaid financial statements comply with tho Ind AS Specified
under Section 133 of the Act. read with Rule 7 of the Companies (Accounts) Rules. 2014
e) On the basis of tho written representations received from the directors as on March
31. 2020 taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2020 from being appointed as a director in terms of Section 164 (2) of the
Act
f) Wilfi respect to tho adequacy of tho Internal financial controls over financial
reporting of tho Company and the operating effectiveness of such controls, refer to my
separate Report in Annexure B" My report expresses an unmodified opinion on tho
adequacy and operating effectiveness of the Companys internal financial controls over
financial reporting.
g) With respect to the other matters to be included In the Auditors Roport In
accordance with the requirements of section 107(16) of tho Act ns amended
In my opinion and to the best of my information and according to the explanations given
to my. the remuneration paid by the Company to its directors during Die year is in
accordance with the provisions of section 197 of the Acl
h) With respect to tho other matters to be included in the Auditors Report in
accordance with Rule
11 of the Companies (Audit and Auditors) Rules, 2014. as amended in my opinion and to
tho best of my information and according to the explanations given to me:
i) the Company has disclosed the impact of pending litigations on its financial
position in its financial statements
ii) The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses
HI) There has been no dolay in transferring amounts, required to be transferred, to tho
Investor Education and Protection Fund by the Company
For Bhnrath Bohra & Co.
Chartered Accountants
Firm No. 019238S .
Bharath Kumar A Bohra
Proprietor
Membership No.237646
UDIN 20237648AAAAB01446
Place: Bangalore
Date: 16.10.2020
ANNEXURE "A" TO THE INDEPENDENT AUDITOR S REPORT
(Referred lo In paragraph 1 under Report on Other legal and Regulatory Requirements
section ol my report to the Members ol Sri Krishna Constructions (India) Limited of even
date)
(i) (a) The Company has maintained proper records showing full particulars. Including
quantitative details and situation of fixed assets
(b) The fixed assets are physically verified during the year by the Management during
the year In my opinion the frequency of such verification is reasonable having regards to
the size of the Company and the nature of its fixed assets. No material discrepancies
were noticed on such physical verifications.
(c) According to the information and explanations given to mo and on the basis of my
examination of the records of the Company, the title deeds of immovable properties
included in the fixed assets are held in the name of the Company.
(it) Physical verification of inventory in the form of Land has boon conducted at
reasonable intervals by the management and no material discrepancies were noticed on
physical verification.
(iii) According to the information and explanations given to mo. the Company has not
granted any loans, secured or unsecured, to companies, firms, limited liability
partnerships or othei parties covered in the register maintained under Section 189 of the
Companies Act, 2013 ( the Act ), Accordingly. Clause 3 (ill) (a), (b) and (c) of the Order
are not applicable to the Company.
(iv) In my opinion and according to the Information and explanation given to mo. the
Company has complied with the provisions of Section 185 and 186 of the Act. with respect
to loans and Investments made.
(v) During the year The Company has not accepted any deposits from the public.
(vi) Maintenance of cost records has nol been specified by the Central Government undor
sub-section (1) of section 118 of the Companies Act
(vii) (a) According to the information and explanations giv/en lo me and on tire basis
of my examination of the records of the Company amounts dediicledfaccriiod In the books of
account in respect of undisputed statutory dues Including Provident fund. Employees State
Insurance. Income-tax, Goods and Service tax, duty of customs, duty of excise, value added
tax. cess and othor material statutory dues which are outstanding for a period of more
than six months from the dale they became payable as on 31.03.2020 as under
| SI. No. |
Nnturo of Duos |
Amount |
| 1 |
TDS |
44.41.078 |
| 2 |
Professional Tax |
29,200 |
| 3 |
PF Employees Contribution |
6,03.379 |
|
PF Employers Contribution |
5.67.353 |
| 5 |
Income Tax |
4.66.60.508 |
(b) According to the information and explanations given to me. there are no dues of
Income-tax. Sales lax. Service tax. GST. Duty of customs, Duty of excise and Value added
tax as at 31 March 2020, which have not been deposited with the appropriate authonties on
account of any dispute
(viii) In my opinion and according to the information and explanations given to me. the
Company has not defaulted in repayment of dues to the banker and overdue amount as at 31st
March. 2020.
(ix) According to the information and explanations given to me and based on my
examination of the records of the Company, the Company has not raised any moneys by way of
initial public offer or further public offer (including debt instruments) and has not
obtained any term loans during the year Accordingly, Clause 3(lx) of the Order is not
applicable to the Company.
(x) During Iho course of my examination of the books and records of ttie Company,
carried out in accordance with the generally accepted auditing practices in India, and
according to the Information and explanations given to me. I hnvo neither come across any
instance of material fraud by the Company or on the Company by its officers or employees,
noticed or reported dunng the year, nor have I been informed of any such case by the
Management.
(xi) In my opinion and according to the information and explanations given to me the
Company has paid/ptovided managerial remuneration in accordance wilt* the requisite
approvals mandated by the provisions of section 197 rend with Schedule V Id the Act
(xil) In my opinion and according to the information and explanations given to me. the
Company is not a Nidhi company and the Nidhi Rules, 2014 ore not applicable to it.
Accordingly. Clause 3(xii) of tho Order is not applicable to tho Company
(xiii) According to the information and explanations given to mo and based on my
examination of tho records of the Company, transactions with tho related parties are in
compliance with Sections 177 and 188 of the Act where applicable and details of such
transactions have been disclosed in the standalone financial statements as required by
applicable Ind AS.
(xiv) According to the information and explanations given to me and based on my
examination of the records of the Company, the Company has not made any preferential
allotment or private placement of shares or fully or partly convertible debentures during
the year Accordingly. Clause 3(xiv) of the Order is not applicable to the Company.
(xv)According to the information and explanations given to me and based on my
examination of the records of the Company, the Company has not entered into any non cash
transactions with directors or persons connected with them Accordingly. Clause 3(xv) of
the Order is not applicable to tho Company.
(xvi) In my opinion and according to the information and explanations given to me, the
Company is not required to be registered under Section 45-IA of the Rosorvo Bank of India
Act. 1934 Accordingly. Clause 3(xvi) of the Order ts not applicable to tho Company.
For Bhorath Bohro & Co.
Chartorod Accountants
Firm No 019238S
Bhnrath Kumar A Bohra
Proprietor
Membership No.237648
Place: Bangalore
Date: 16.10.2020
ANNEXURE "B" TO THE INDEPENDENT AUDITORS REPORT
(Referred lo In paragraph 2(f) under Report on Other Legal and Regulatory Requirements
section of my report lo the Members of Sri Krishna Constructions (India) Limited of even
date)
Report on the Internal Financial Controls Over Financial Reporting under Clauso (I) of
Sub-section 3 of Section 143 of the Companies Act, 2013 ("the Act")
I have audited the internal financial controls over financial ruportiny of Sri Krishna
Constructions (India) Limited (the Company*) as of March 31. 2020 in conjunction with my
audit of the financial statements of the Company for the year ended on that date
Managements Responsibility for Internal Financial Controls The Board of Directors of the
Company is responsible for establishing and maintaining internal financial controls based
on the Internal control over financial reporting criteria established by the Company
considering the essential components of internal conlrol staled in the Guidance Note on
Audit of Internal Financial Controls Over Financial Reporting Issued by the Institute ol
Chartered Accountants of India These responsibilities include Die design, implementation
and maintenance of adequate internal financial controls that wero operating effectively
foi ensuring the orderly and efficient conduct of its business, including adhoronce lo
respective companys policies, the safeguarding of its assets, the prevention and
detection of frauds and errors. Ihe accuracy and completeness of the accounting records,
and tho timely preparation of reliable financial information, as required under the
Companies Act 2013.
Auditors Responsibility
My responsibility is to express an opinion on tho mtomal financial controls over
financial reporting ol the Company based on my audit I conducted rny audit in accordance
with the Guidance Note on Audit of Internal Finonclal Controls Over Financial Reporting
(the "Guidance Note*) issued by the Institute of Chartered Accountants of India and
tho Standards on Auditing proscribed under Sncdon 143(10) of Ihe Companies Act. 2013. lo
Ihe extent applicable lo an audit of internal financial controls Time Standards and Ihe
Guidance Note require that I comply with othical requiromonts and plan and perform the
audit to ohtnin reasonable assurance about whether adequate internal financial controls
over financial reporting was established nnd maintained and if such controls operated
effectively in nil material respects
My audit involves performing procedures to obtain audit evidence about the adequacy of
the internal financial controls system over financial reporting and their operating
effectiveness My audit of internal financial controls over financial reporting included
obtaining an understanding of internal financial controls ovor financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design
and oporaling effectiveness of internal control based on tho assessed risk. The procoduros
/selected depend on tho auditors judgement, including the assessment of the risks of
material misstatement of tho financial statements, whether due to fraud or error. I
believe tlval the audit evidence I havo obtained Is sufficient and appropriate to provide
a basis for my audit opinion on the internal financial controls system over financial
reporting of the Company.
Meaning of Internal Financial Controls Ovor Financial Reporting
A companys Internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding tho reliability of financial reporting and the
preparation of financial statements for external purposes In accordance with generally
accepted accounting principles. A companys internal financial control ovor financial
reporting includes those policies and procedures dial (I) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company. (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements iri
accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorisations of
management and directors of the company, and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorised acquisition, use, or disposition of the
companys assets that could have a material effect on the financial statements
Limitations of Internal Financial Controls over Financial Reporting
Because of tho inherent limitations of internal financial controls ovor financial
reporting, including the possibility of collusion nr improper management overrule of
controls, material misstatements due lo error or fraud may occur and not bo detected.
Also, projections of any evaluation of tho internal financial controls over financial
reporting to future periods are subject to the nsk that the internal financial conlrol
over financial reporting rnny become inadequate been use of changes in conditions, or that
tho degree of compliance with the policies or procedures may deteriorate.
For Bhorath Bohro & Co.
Chartorod Accountants
Firm No 019238S
Bhnrath Kumar A Bohra
Proprietor
Membership No.237648
Place: Bangalore
Date: 16.10.2020
+91-9892691696
