consolidated construction consortium ltd share price Auditors report

To The Members of

Consolidated Construction Consortium Ltd.

Report on the Audit of Standalone Ind AS Financial Statements

Adverse Opinion

We have audited the accompanying standalone Ind AS financial statements of Consolidated Construction Consortium Limited ("the Company"), which comprise the balance sheet as at March 31, 2023, the statement of profit and loss (including other comprehensive income), the statement of changes in equity, the statement of cash flows for the year then ended and notes to the Ind AS financial statements, including 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 to us, in view of the pervasive nature of the effects of the matters described in the Basis for Adverse Opinion section of our report, the aforesaid Ind AS financial statements, subject to the matters relating to the disclosure stated in the said section, give the information required by the Companies Act, 2013,(the "Act") in the manner so required and does not give a true and fair view in conformity with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind AS") and other accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2023, and its loss and other comprehensive loss, changes in equity and its cash flows for the year ended on that date.

Basis for Adverse Opinion

a. Going Concern Assumption:

We draw attention to Note 47 to the standalone financial statements, stating thatthe financial statements have been prepared on a going concern basis in spite of the material uncertainties regarding going concern. We were informed by the RP that pursuant to the Corporate Insolvency Resolution Process (CIRP) which is currently in progress, as per the Code, it is required that the Company be managed as a going concern during the CIRP and accordingly, the standalone financial statements are continued to be prepared on going concern basis for the reasons stated in the said note. In view of the negative net worth, drastic reduction in revenue, increasing negative cash flows and in the absence of an approved Resolution Plan, petition for liquidation filed by RP, the preparation of the financial statements on a fundamental accounting assumption of going concern, in our opinion, is not appropriate. The effect of such change in classification in the financial state of affairs as presented in the financial statements is not ascertainable, since we have not been provided with the valuation of the entity on liquidation basis obtained by the Resolution Professional.

b. We have not been provided with access to the records and information including the minutes of the meetings of the Committee of Creditors (COC), valuation reports, outcome of certain procedures carried out as part of the CIRP etc. We were informed by the RP that the aforesaid information are confidential in nature and the same could not be shared with anyone other than the COC and the Honble NCLT. In view of the above, we are unable to comment on the possible impact, if any, on the financial statements, presentations and disclosures, that may have arisenhad we been provided with those information.

c. As stated in Note No. 48 (e), the company has not physically verified its Property, Plant and Equipment ("PPE") during the year.With regard to the Capital Work-in-Progress (CWIP) amounting to Rs.2,258.12 lakhs the same was suspended with effect from the year 2014 with no further activity. Further, it has not conducted an impairment assessment for its tangible assets (viz., PPE & CWIP) during the year. In the absence of appropriate audit evidence for existence, reconciliation of PPE and CWIP and its impairment assessment thereof, we are unable to comment on the impact, if any, on the loss for the year and on the carrying value of the PPE and the CWIP as at the year end.

d. Trade receivables & Contract Assets aggregating to Rs.71,876.61 lakhs (PY 73,183.97 lakhs), classified under various heads (refer note no. 9 (d)), include a sum of Rs.59,602.60 (PY Rs.62,243.76 lakhs) outstanding for a period exceeding three years against which the company carries a provision of Rs.10,703.60 lakhs (PY Rs. 10,404.39 lakhs). In the opinion of the management, the said dues other than those provided are fully recoverable. Further, the company has not provided the computation for the provision made towards the expected credit loss amounting to Rs.15,077.88 lakhs (PY Rs. 11,213.86 lakhs) as per the requirements of the Ind AS 109- "Financial Instruments". Considering the period of outstanding, the arbitration and legal proceedings which are pending for a substantial period of time, lack of appropriate audit evidence, non-availability of confirmation and reconciliation, we are unable to comment on the recoverability of these amounts and the adequacy of the provision, which will impact the loss for the year and carrying value of Trade Receivables as on March 31, 2023.

e. As stated in Note No. 48 (d), the company has not conducted the physical verification of the inventories during the year. Considering the age, the obsolescence of inventories, and its existence, we are unable to comment on its impact, if any, on the loss for the year and the carrying value of inventories as at the year end.

f. As stated in Note No. 48 (g), the Company has not made an impairment assessment of investments held in subsidiary (carrying value Rs. 820.11 lakhs) and on the loans and advances (carrying value Rs. 1,761.46 Lakhs) given to the wholly owned subsidiary. Considering the losses incurred by the subsidiary and the reduction in the revenues, we are unable to comment on the consequential impact, if any, on the loss for the year and their respective carrying values as at the year-end in respect of the above matters.

g. We have not received the statement of account for Rs. 1.91 lakhs (4 accounts)and confirmation of balance for Rs.468.64 lakhs (13 accounts)lying in the current account with banks, for Margin Money Deposits amounting to Rs. 110.50 lakhs as at the Balance sheet date. In the absence of sufficient appropriate audit evidence, we are unable to determine any possible impact thereof on the financial statements and on the carrying value of cash and cash equivalents/ other bank balances as at the year end.

h. As mentioned in Note 20.3 to the standalone financial statements, in view of the continuing default to the terms of the restructuring package with the lenders, the status of borrowings, Optionally Convertible Debentures (OCD) and Non-convertible Debentures (NCD) have not been reclassified. Further, as stated in Note No 45 (7),the Company has not computed and provided for additional and penal interest on defaults under borrowings as per the contractual terms of the underlying agreements up to the period ended March 31, 2023. As mentioned in Note 48 (c), we have neither received bank statements nor have been able to obtain confirmations for restructured term loans including working capital loans from banks and financial institutions (Balance as per books as on March 31, 2023 amounting to Rs. 79,930.80 lakhs). In the absence of sufficient appropriate audit evidence, we are unable to determine the possible impact thereof on the loss for the year and on the value of borrowings as at the year-end.

i. The Company has not provided the appropriate audit evidence relating to the identification of micro and small enterprises and the dues thereon. Further the Company does not provide for interest on the dues to the micro and small enterprises as required under the Micro, Small and Medium Enterprises Development Act, 2006. Considering the non-identification of the micro and small vendors, we are unable to comment on the completeness of such disclosures made in the standalone financial statements and its impact on the loss for the year. j. We refer to Note 48 (f) to the standalone financial statements regarding delay in remittance and non-remittance of statutory dues (including GST/Service Tax/ VAT/ PF/TDS). The Company has not estimated and provided for the interest and penalty on defaults under the provisions of respective statutes. Therefore, we are unable to comment on the possible impact thereof on the loss for the year and on the carrying value of liabilities as at the year-end.

k. The details and basis for the estimate of the probable outflow of resources embodying economic benefits with respect to the ongoing contracts with customers were not made available for our audit. Further, as stated in Note No.48(h), the company has not made any provision for liquidated damages in respect of delayed projects as the management is confident that there would not be any adverse impact on completion of projects. Accordingly, the consequential impact, if any, in the financial statementsof the Company as at the year-end is not ascertainable.

l. We refer to Note 45 (4),the Company had given corporate financial guarantees to the lenders on behalf of Noble Consolidated Glazings Limited and CCCL Infrastructure Limited, wholly owned subsidiaries. These subsidiaries have defaulted in repayment of their loan obligations and the lenders have invoked corporate guarantees during the year. Pursuant to the invocation of guarantee, the Company has received claims from such lenders amount to Rs.10,638.78 lakhs, which has not been recognized in the financial statements and to this extent the loss for the year, the liabilities is understated, and the other equity is overstated by the like amount as on March 31, 2023.

m. We have not been provided with the details relating to the ageing of trade receivables, contract assets, trade payables etc., and outstanding bank guarantees. In the absence of appropriate audit evidence, we are unable to comment on the correctness of the disclosure relating to the classification of trade receivables, trade payables, outstanding bank guarantees as stated in Note No. 9 (d), Note No. 22.2 and Note No.45 (2) to the Notes on Accounts.

Other Matters

Previous year financials

The financial statements of the Company for the year ended March 31, 2022, were audited by another auditor who expressed a modified opinion on those statements on June 27, 2022.

Corporate insolvency Resolution Process ("CIRP")

The Honble National Company Law Tribunal, Chennai Bench ("NCLT") admitted an insolvency and bankruptcy petition filed by a financial creditor against Consolidated Construction Consortium Limited ("the Company") and appointed Mr. KrishnasamyVasudevan to act as Interim Resolution Professional (IRP) vide its Order No. IBA/483/2020 dated April 20, 2021 with direction to initiate appropriate action contemplated with extant provisions of the Insolvency and Bankruptcy Code, 2016 and other related rules who has been later appointed during the year as the Resolution Professional (‘RP) by the Committee of Creditors.

In view of pendency of the Corporate Insolvency Resolution Process (CIRP), and in view of suspension of the powers of board of directors and as explained to us, the powers of adoption of the standalone financial statements for the year ended March 31, 2023 vest with the RP.

Share of profits from Partnership firm

As stated in Note No. 48 (i) the share of profits from joint venture (partnership firm) is accounted based on the provisional financials certified by the management as the audit of the partnership firm is not yet complete. In the opinion of the management, there will not be any material impact in the financial statements on account of the same. Our report is not modified in this regard.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Ind AS financial statements of the current period. These matters were addressed in the context of our audit of the Ind AS financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matter described below as the key audit matter to be communicated in our audit report.

Key Audit Matter	Auditors Response
Revenue recognition	We selected a sample of contracts with customers and performed the following procedures:
There are significant accounting judgements in estimating revenue to be recognised on contracts with customers, including estimation of costs to complete. The Company recognizes revenue on the basis of stage of completion in proportion of the contract costs incurred at balance sheet date, relative to the total estimated costs of the contract at completion. The recognition of revenue is therefore dependent on estimates in relation to total estimated costs of each such contract.	a. Obtained and read contract documents for each selection, change orders, and other documents that were part of the agreement.
	b. Identified significant terms and deliverables in the contract to assess managements conclusions regarding the (i) identification of distinct performance obligations; (ii) changes to costs to complete as work progresses and as a consequence of change orders; (iii) the impact of change orders on the transaction price; and (iv) the evaluation of the adjustment to the transaction price on account of variable consideration.
	c. Compared costs incurred with Companys estimates of costs incurred to date to identify significant variations and evaluated whether those variations have been considered appropriately in estimating the remaining costs to complete the contract.
	d. Verified the measurement statement acknowledged by the customers.

Information Other than the Ind AS Standalone Financial Statements and Auditors Report Thereon:

The Companys Board of Directors/ RP is responsible for the other information. The other information comprises the information included in the Management Discussion and Analysis, Boards Report including Annexures to Boards Report and Report on Corporate Governance but does not include the Ind AS financial statements and our auditors report thereon. These reports are expected to be made available to us after the date of this auditors report.

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

In connection with our audit of Ind AS financial statement, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained during the course of our audit or otherwise appears to be materially misstated.

When we read the other information, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and take appropriate actions.

Responsibilities of Management and Those Charged with Governance for the Ind AS Standalone Financial Statements

The Company has been under the Corporate Insolvency Resolution Process (‘CIRP) and the powers of the Board of Directors stand suspended as per Section 17 of the Code and such powers are being exercised by the Resolution Professional (‘RP) appointed by the NCLT under the provisions of the Code. As per Section 20 of the Code, the management and operations of the Company are being managed by the Resolution Professional Mr. KrishnasamyVasudevan.

The Companys Management and the RP is responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these Ind AS financial statements that give a true and fair view of the financial position, financial performance, including other comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Ind AS 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, the Management and RP is responsible for assessing the 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 to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Management and RP are also responsible for overseeing the Companys financial reporting process.

Auditors Responsibilities for the Audit of the Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the Ind AS financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors report that includes our opinion. Reasonable assurance is a high level 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, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Ind AS financial statements.

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

• Identify and assess the risks of material misstatement of the Ind AS financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal 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 made 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 we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the Ind AS financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the Ind AS financial statements, including the disclosures, and whether the Ind AS financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatement in the Ind AS financial Statements that, individually or in aggregate, makes it probable that the economic decisions of a reasonably knowledgeable user of the financial statements may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatement in the Ind AS financial statements.

We 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 we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Ind AS financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditors Report) Order, 2020 ("the Order"), issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the "Annexure A", a statement on the matters specified in paragraphs 3 and 4 of the said Order, to the extent applicable.

2. As required by Section 143(3) of the Act, we report that:

(a) Except for the matters described in Basis for Adverse Opinion paragraph above, we have sought and obtained all the information and explanations which to the best of 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 the Company so far as it appears from our examination of those books;

(c) The Balance Sheet, the Statement of Profit and Loss including the Other Comprehensive Income, the Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the books of account;

(d) Except for the matters described in Basis for Adverse Opinion paragraph above, in our opinion, the aforesaid Ind AS financial statements comply with the Indian Accounting Standards (Ind AS) prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015 as amended;

(e) Except for the matters described in Basis for Adverse Opinion paragraph above, no financial transactions or matters have any adverse effect on the functioning of the Company;

(f) We have not received any written representations from the directors as on March 31, 2023 with regard to disqualification from being appointed as a director in terms of Section 164 (2) of the Act. However, considering the fact, that the Company has defaulted in repayment of Optionally convertible debentures and Non-convertible debentures and interest thereon and the default continued for more than one year, in our opinion, all the directors are disqualified from being appointed as director in terms of Section 164 (2) of the Act.

(g) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B". Our report expresses a Disclaimer of Opinion on the adequacy and operating effectiveness of the Companys internal financial controls over financial reporting.

(h) With respect to the matters to be included in the Auditors Report under section 197(16) of the Act, as amended:

In our opinion and to the best of our information and according to the explanations given to us, no remuneration was paid by the Company to its directors during the year,

(i) With respect to the other matters to be included in the Auditors 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 the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financial position in its Ind AS financial statements – Refer Note 45 to the Ind AS financial statements;

ii. As represented by the management, the Company does not have any material foreseeable losses from anylong-term contracts including derivative contracts for which it requires any provision; and

iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.

iv. (a) The management has represented that, to the best of its knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company, or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(b) The management has represented, that, to the best of its knowledge and belief, no funds have been received by the Company from any persons or entities, including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(c) Based on audit procedures performed that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations under sub-clause (i) and (ii) of Rule 11(e) contain any material mis-statement.

v. The Company has neither declared nor paid any dividend during the year.

vi. As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable for the Company only with effect from April 1, 2023, reporting under clause (g) of Rule 11 is not applicable.

Annexure - A to the Independent Auditors Report

(Referred to in paragraph 1 under ‘Report on Other Legal and Regulatory Requirements of our report to the members of Consolidated Construction Consortium Limited of even date)

(i) (a) (A) According to the information and explanations given to us and audit procedures performed by us, the Company has maintained proper records showing full particulars, including quantitative details and situation of Property, Plant and Equipment.

(B) According to the information and explanations given to us and audit procedures performed by us, the Company does not have any intangible assets.

(b) As informed to us, the Property, Plant and Equipment (PPE) (except immovable properties) were not physically verified during the year by the management as stated in para c of our Basis for Adverse Opinion section of our report. In the absence of physical verification, we are unable to comment on the discrepancies, if any.

c) According to the information and explanations given to us, the records examined by us and based on the examination of the copies of the conveyance deeds provided to us, we report that the title deeds, comprising all the immovable properties of land and buildings which are freehold, are held in the name of the Company as at the Balance sheet date except for a immovable property at Delhi (as stated below) which is not registered in the name of the Company We were informed that the original title deeds are deposited with the lenders as these have been pledged as security for the Companys borrowings.

Description of the Property	Gross Carrying Value (Rs in lakhs)	Held in the name of	Whether promoter, director or their relative or employee	Period held	Reason for not being in the name of Company
Commercial Building	1,761.19	National Building ConstructionCorporation Limited (NBCC)	No	Since September 2007	Due to the non-issuance of Completion Certificate

The Company is taking necessary steps to get it registered in the Companys name at the earliest.

(d) According to information and explanations given to us and audit procedures performed by us, the Company has not revalued its Property, Plant and Equipment during the year.

e) According to information and explanations given to us and audit procedures performed by us, there are no proceedings initiated or are pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(ii) (a) As stated in para e under "Basis for Adverse Opinion" section of our report, physical verification of inventories lying at various sites and godowns could not be carried out. In the absence of physical verification, we are unable to comment on the discrepancies, if any.

b) The Company was sanctioned working capital limits in excess of five crore rupees in earlier years, in aggregate, from banks on the basis of security of current assets. According to information and explanations given to us the Banks have classified such accounts as Non-performing Assets on account of continuous defaults committed by the Company and further the Company has not filed any statements or returns with the Banks and hence reporting under clause 3 (ii) (b) of the Order could not be made.

(iii) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company has not made any investments, provided any guarantee or security, or granted any loans or advances in the nature of loans, secured or unsecured, to companies, firms, and Limited Liability partnerships or any other parties during the year. Accordingly, reporting under clause 3(iii)(a) to 3(iii)(f) of the Order are not applicable.

(iv) According to information and explanations given to us and audit procedures performed by us, the Company has neither made any investments nor has given loans or provided guarantee or security to the parties covered under Section 185 of the Act. The Company, being engaged in the business of providing infrastructural facilities, Section 186 of the Act is not applicable in respect of investments made, loans given and guarantees provided under sub-section (11) of the said Section of the Act.

(v) The Company has not accepted any deposits or amounts which are deemed to be deposits from the public. Accordingly, reporting under clause 3(v) of the Order is not applicable.

(vi) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 148(1) of the Companies Act, 2013 and are of the opinion that prima facie, the specified accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.

(vii)(a) According to the information provided and explanations given to us and based on our examination of the records of the Company, the Company is generally not regular in depositing with appropriate authorities undisputed statutory dues including Goods and Services Tax, provident fund, employees state insurance, income-tax, sales-tax, service tax, value added tax, cess and other material statutory dues applicable to it. There are no material outstanding statutory dues existing as on the last day of the financial year which is outstanding for more than six months from the day, they becomes payable except for the following:

Name of the Statute	Nature of the dues	Period to which relates to	in Lakhs
The Jammu and Kashmir Value Added Tax, 2005	Tax on Sales	June 17	22.17
Income Tax Act, 1961	Tax Deducted at Source	April-18 to March-21	817.03
Employees Provident Funds and Miscellaneous Provisions Act, 1952	Provident Fund contribution	June 2019 to March 2021	404.16
Central Goods and Services Tax Act, 2017 and various State GST Acts	Central, State and Integrated Goods And Services Tax	January-19 to December -21	1,817.91

(b) According to the information provided and explanations given to us, there are no dues of sales tax, goods and services tax, service tax, duty of customs, value added tax which have not been deposited with the appropriate authorities on account of dispute except for the following:

Sl. No. Name of the Statue	Nature of the Dues	Amount (Rs.in Lakh)	Period to which the amount relates	Forum where the dispute is pending
1. Income Tax Act, 1961	Income Tax	7,087.95	FY 2009-10	Income Tax Appellate Tribunal, Chennai
	Income Tax	6,904.35	FY 2014-15	National Faceless Appeal Centre, Delhi
	Income Tax	547.52	FY 2006-07	National Faceless Appeal Centre, Delhi
	Income Tax	1,197.51	FY 2009 to 2012	Madras High Court, Chennai
2. Kerala Value Added Tax, 2003	Value Added Tax	55.10	FY 2005-06	Appellate Assistant Commissioner, Cochin
3. Karnataka Value Added Tax, 2003	Value Added Tax	34.22	FY 2009-10	Deputy Commissioner of Commercial Taxes, Audit3.5 , Bengaluru
4. Tamil Nadu Value Added Tax, 2006	Value Added Tax	407.85	Jan 2007 to Mar 2008	Commercial Tax Officer, Chennai
	Reversal of ITC for SEZ Projects	552.56	Apr 2008 to Mar 2010	Commercial Tax Officer, Chennai
5. Rajasthan Value Added Tax, 2006	Works Contract Tax- TDS	17.89	Apr 2008 to Mar 2010	The Appellate Authority, Commercial Taxes (Appeal)-1- Jaipur
6. West Bengal Value Added Tax, 2003	Value Added Tax including late fee	160.60	FY 2011-12	The Joint Commissioner, Commercial Taxes, Alipore Charge, Kolkatta
	Value Added Tax	167.72	FY 2012-13	Appellate Tribunal, West Bengal Taxation Tribunal
7. Finance Act, 1994 (Service Tax)	Service Tax	93.07	Sep 2011 to Sep 2012	Commissioner of Service Tax, Chennai
		6.05	Oct 2012 to June 2014	Joint Commissioner, Service Tax II Commissionerate, Chennai.
		61.27	Apr 2011 to Mar 2014	Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai
		10.22	Apr 2014 to Sep 2015	Assistant Commissioner of Service Tax, Chennai.
		12.91	Oct 2015 to June 2017	Assistant Commissioner of Central Tax, Mylapore Division, North Commissionerate, Chennai
	Utilization of ITC on Capital Goods for payment of service tax	3.24	Apr 2015 to June 2017	Assistant Commissioner of Central Tax, Mylapore Division, North Commissionerate, Chennai
8. Customs Act, 1962	Customs duty	2.93	FY 2008-09	Assistant Commissioner of Customs (Group- V), Mumbai

Note: The aforesaid details are as prepared and furnished by the management and we have not been provided with appropriate audit evidence for the aforesaid disclosures other than Sl. No. 1- Income Tax and accordingly we are unable to comment on the correctness of the same.

(viii) According to the information explanations given to us, and on the basis of our examination of the records of the Company, the Company has not surrendered or disclosed any transactions, previously unrecorded as income in the books of account, in the tax assessment under the Income Tax Act, 1961 as income during the year and accordingly reporting under clause 3 (viii) of the Order is not applicable to the Company.

(ix) (a) According to the information and explanations given to us and audit procedures performed by us, the Company was in breach of material provisions of long-term restructured loan arrangements during the financial year 2018-2019 and subsequently lenders (banks and financial institutions) have called upon the Company to pay the entire dues as stated in Note No. 20.3 and 20.4. Pursuant to the continuing defaults of the Company, a Corporate Insolvency Resolution Process (CIRP) under the Insolvency and bankruptcy Code 2016 (IBC) was initiated against the Company vide an Order of the Honble National Company Law Tribunal (NCLT) dated April 20, 2021. Hence, the entire amount of borrowing including accrued interest are overdue and further post commencement of CIRP no payments could be made thereafter to the Banks and Financial Institutions until the resolution process is concluded.

(b) As represented to us, the Company has not been declared as a willful defaulter by any bank or financial institution or government or any government authority.

(c) According to the information and explanations given to us and audit procedures performed by us, the Company has not taken any term loans during the year and there are no outstanding terms loans at the beginning of the year pending utilization, and hence, reporting under clause 3 (ix)(c) of the Order is not applicable.

(d) According to the information and explanations given to us and on an overall examination of the financial statements of the Company, we report that no funds were raised on a short-term basis by the Company.Hence,reporting on clause 3 (ix) (d) does not arise.

(e) On an overall examination of the financial statements of the Company, the Company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries.

(f) The Company has not raised any loans during the year and hence reporting on clause 3 (ix) (f) does not arise.

(X) (a) The Company has not raised any money by way of initial public offer or further public offer (including debt instruments) during the year. Accordingly, reporting under clause 3(x)(a) of the Order is not applicable.

(b) According to the information provided and explanations given to us, and on the basis of our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or convertible debentures (fully, partially, or optionally convertible) during the year. Accordingly, reporting under clause 3(x)(b) of the Order is not applicable.

(xi) (a) According to the information and explanations given by the management and based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements, we report that no fraud by the Company or any fraud on the Company has been noticed or reported during the year accordingly reporting under clause 3 (xi)(a) of the order is not applicable.

(b) According to the information and explanations given to us, no report under sub-section 12 of section 143 of the Act, in ADT-4, has been filed by the auditors during the year and hence clause 3 (xi)(b) of the order is not applicable.

(c) As represented to us by the management, there are no whistleblower complaints received by the Company during the year.

(xii) According to the information and explanation given to us, the Company is not a Nidhi Company. Accordingly, reporting under clause 3(xii) of the Order is not applicable.

(xiii)In our opinion and according to the information and explanations given to us, the transactions entered with the related parties are in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and details have been disclosed in the financial statements as required by the applicable Indian Accounting Standards.

(xiv) (a) According to the information and explanations given to us and audit procedures performed by us, in our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

(b) We have considered the internal audit reports of the Company issued till date (completed only till September 2022), for the year under audit.

(xv) According to the information and explanations given to us, in our opinion the Company has not entered into any non-cash transactions with its directors or persons connected with its directors and hence provisions of section 192 of the Companies Act, 2013 are not applicable to the Company.

(xvi) (a) According to the information and explanations given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.

(b) According to the information and explanations given to us, the Company has not conducted any Non-Banking Financial or Housing Finance activities.

(c) The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India. Accordingly, reporting under clause 3(xvi)(c) and (d) of the Order are not applicable.

(xvii) According to the information and explanations given to us and on an overall examination of the financial statements of the Company, the Company has incurred cash losses in the financial year and in the immediately preceding financial year amounting to Rs. 11,268.20 lakhs and Rs. 12,913.39 lakhs respectively.

(xviii) There has been no resignation of the statutory auditors during the year and accordingly reporting under clause 3(xviii) of the Order is not applicable.

(xix) According to the information and explanations given to us and on the basis of the financial ratios, ageing and expected dates of realization of financial assets and payment of financial liabilities, other information accompanying the financial statements, and as stated in para (a) of "Basis for Adverse Opinion" section of our report, there exists a material uncertainty that may cast significant doubt about the Companys ability to continue as a going concern indicating that Company may not be capable of meeting its liabilities existing at the date of balance sheet as and when they fall due within a period of one year from the balance sheet date.

(xx) The requirements as stipulated in the provisions of Section 135 of the Companies Act, 2013 are not applicable to the Company. Accordingly, reporting under clause 3(xx)(a) and (b) of the Order are not applicable.

Annexure - B to the Independent Auditors Report

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

We were engaged to audit the internal financial controls over financial reporting of Consolidated Construction Consortium Limited (the "Company") as of March 31, 2023, in conjunction with our audit of the standalone financial statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Companys management 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 control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (‘ICAI). These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companys policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors Responsibility

Our responsibility is to express an opinion on the Companys internal financial controls with reference to IND AS financial statements based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards on Auditing, to the extent applicable to an audit of internal financial controls, both issued by the ICAI.

Because of the matter described in Disclaimer of Opinion paragraph below, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on internal financial controls with reference to IND AS financial statements of the Company.

Meaning of Internal Financial Controls Over Financial Reporting

A companys internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of standalone financial statements for external purposes in accordance with generally accepted accounting principles. A companys internal financial control over financial reporting includes those policies and procedures that(1) 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 standalone financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companys assets that could have a material effect on the standalone financial statements.

Disclaimer of Opinion

The Company has not provided appropriate audit evidence relating to the internal financial control over financial reporting on criteria based on or considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. Because of this reason, we are unable to obtain sufficient appropriate audit evidence to provide a basis for our opinion whether the Company had adequate internal financial controls over financial reporting and whether such internal financial controls were operating effectively as at March 31, 2023.

We have considered the disclaimer reported above in determining the nature, timing, and extent of audit tests applied in our audit of the standalone financial statements of the Company, and the disclaimer does not affect our opinion on the standalone financial statements of the Company.

For ASA & Associates LLP

Chartered Accountants

ICAI Firm Registration No: 009571N/N500006

G N Ramaswami

Partner

Place : Chennai

Membership No. 202363

Date: April 28, 2023

UDIN: 23202363BGSQTJ5286