nbcc india ltd share price Auditors report


TO THE MEMBERS OF NBCC (INDIA) LIMITED

Report on the Audit of the Standalone Financial Statements Opinion

We have audited the accompanying standalone financial statements of NBCC (India) Limited (herein referred to as "the Company"), which comprise the balance sheet as at March 31, 2022, the statement of profit and loss (including other comprehensive income), the statement of changes in equity and the statement of cash flows for the year then ended and notes to the financial statements including a summary of the significant accounting policies and other explanatory information, in which is included the unaudited financial statements of 3 foreign branches of the company located at Mauritius, Maldives and Seychelles for the year ended on that date (as certified by the management) (hereinafter referred to as "the standalone financial statements").

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Companies Act, 2013 ("the Act?) in the manner so required and 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 stateofaffairs of the company as at March 31, 2022, its profit, total comprehensive income, changes in equity and its cash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) specified under section 143 (10) of the Companies Act, 2013. Our responsibilities under those further described in the Auditor?s Responsibilities for the Audit of the FinancialStatements section of our report. We are independent of the company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India ("ICAI") together with the ethical requirements that are relevant to our audit of the standalone financial statements under the provisions of the Act and the Rules made thereunder, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI?s Code of Ethics. We believe that the audit evidence, we have obtained, is sufficient and appropriate to provide a basis for our opinion on the standalone financial statements.

Emphasis of Matters

We invite attention to the following matters in the notes to the standalone financial statement: i) Note No. 52(i) and 52(ii) regarding non-execution of conveyance deed in favour of the company and Note No. 52(iii) and 52(iv) regarding non handing over of possession and non-execution of lease deed(s) and other matters incidental thereto, in respect of various properties, forming part of the land bank (inventory) involving, in aggregate, a sum of Rs. 21,942.11 Lakh; ii) Note No. 52(v) regarding payment by the company to L&DO, MoHUA as premium for availing additionalground coverage at company?s built up and sold project "NBCC Plaza" and incurring of other construction cost and consequential expenses thereon for project which is stuck up on account of similar demand raised by South Delhi Municipal Corporation in respect of additional ground coverage, in the year 2015; iii) Note No. 52(vi) regarding developed real estate project having a carrying value of Rs. 8,701.85 Lakh and remaining unsold for want of environmental clearance; iv) Note No. 52(vii) regarding developed real estate projects having a carrying value of Rs. 916.96 Lakh and remaining unsold due to unfavorable market conditions; v) Note No. 52(viii) regarding developed real estate projects costing Rs. 5,766.21 due to unfavorable market conditions resulting in deterioration in value by Rs. 1,005.81 Lakh; over vi) Note no. 52(x) regarding developed real estate project which exhibited structural cracks requiring vacation of 392 sold out units, resulting in write off of inventory amounting to Rs. 9,979.83 Lakh and further unascertained provided due to pending decision by the management liabilities and the courts. The matter is also under investigation by vigilance department. [amount not ascertainable]; vii) Note No. 53(b) regarding the balances of trade receivables, loans and advances, security deposits, earnest money deposits, deposits and trade payables being subject to reconciliation, confirmation and consequential adjustments thereof. viii) Note No. 53(d) regarding uncertainties arising out of the outbreak of COVID - 19 pandemic and disruptions in regular business operations due to lockdown and consequential assessment made by the management on its business and its associated financial risks; Our opinion is not modified in respect of above matters.

Key Audit Matters

Key audit matters are those matters that in our professional judgment were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the standalone 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 matters described below to be the key audit matters to be communicated in our report.

Key Audit Matters Auditor?s Response
Accuracy of recognition, measurement, presentation and disclosures of revenues and other related balances in respect of "Revenue from contracts with Customers" under IndAS115(RevenueAccountingStandard) Principal Audit Procedures
The standard involves certain key judgments relating to identification of distinct performance obligations, determination of transaction price preparation of identified performance obligations, the appropriateness of the basis used to measure revenue recognized over aperiod, and disclosures including presentations of balances in the financial statements. to determine An estimated effort is a of the revenue, as it requires consideration required to contract. Efforts incurred till complete the remaining performance obligation. Our audit approach consisted testing of the design and operating effectiveness of internal controls and procedures as follows:
Refer Note No. 26 to the standalone financial statements. Evaluated the effectiveness of control over the of information that are designed to ensure the completeness and accuracy.
Selected a sample of existing continuing contracts and new contracts, and tested the operating effectiveness of the internal control, relating to identification of the distinct performance obligations and determination of transaction price.
Tested the relevant information, accounting systems and change relating to contracts and related information used in recording and disclosing revenue in accordance with the Ind AS 115.
Reviewed some sample of contracts to possible delays in achieving milestones which require change in estimated efforts to complete the remaining performance obligation.
Performed analytical procedures and test of details for reasonableness and other related material items.
Assessment and recoverability of trade receivables Principal Audit Procedures
The company has net trade receivables outstanding of Rs. 1,60,910.15 Lakh at the end of 31stMarch 2022. We assessed the company?s internal process to recognize the revenue and review mechanism of trade receivables.
These balances are related to revenue recognized in line with Ind AS for ongoing contracts and completed contracts. Our audit approach consisted testing of the design and operating effectiveness of internal controls and procedures as follows:
The assessment of its recoverability is a key audit matter in the audit due to its size and high level of management judgment. Evaluated the process of invoicing, verification and reconciliation with customer.
Refer Note No. 10 to the standalone financial statements. Obtained the list of project wise outstanding details and its review mechanism by the management.
Reviewed the guidelines and policies of the company for impairment of trade receivables.
Tested the accuracy of ageing of trade receivables at the year end on sampling basis.
Performed analytical procedures and test of data, their reasonableness and recoverability and other material items.
Provisions and Contingent Liabilities Principal Audit Procedures
The company is involved in various taxes and other disputes for which final outcomes cannot be easily predicted and which could potentially result in significant liabilities. The assessment of the risks associated with the litigations is based on complex assumptions, which require the use of judgment and such judgment relates, primarily, to the assessment of the uncertainties connected to the prediction of the outcome of the proceedings and to the adequacy of the disclosures in the financial statements. Because of the judgment required, the materiality of such litigations and the complexity of the assessment process, the area is a key matter for our audit. Our audit procedure in response to this key Audit Matter included, among others:
Refer Note No. 40 to the standalone financial statements. Assessment of the process and relevant controls implemented to identify legal and tax litigations, pending administrative proceedings. Assessment of assumptions used in the evaluation of potential legal and tax risks performed by the legal and tax department of the company considering the legal precedence and other rulings in similar cases.
Inquiry with legal and tax departments of the company regarding the status of the most significant disputes and inspection of the key relevant documentation.
Analysis of opinion received from the experts, wherever available.
Review of the adequacy of the disclosures in the notes to the financial statements.

Information Other than the Standalone Financial Statements and Auditor?s Report Thereon

The company?s management is responsible for the preparation of the other information. The other information comprises the information included in director?s report and annexure but does not include the standalone financial statements and our auditor?s report thereon. The director?s report and annexure is expected to be made available to us after the date of this auditor?s report.

Our opinion on the standalone financial statements does not cover the other information any form of assurance conclusion thereon.

In connection with our audit of the standalone financial information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the standalone financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. conclude that there is a material misstatement therein, we are Whenwereadthe‘Other required to communicate the matter to those charged with governance and take appropriate actions, if required.

Management?s Responsibility and Those Charged with Governance for the Standalone Financial Statements

The management of the company and the board of directors are responsible for the matters stated in Section134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance including other comprehensive income and 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 policies; making judgments 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 standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

In preparing the standalone financial statements, the management of the company is responsible for assessing the company?s ability to continue as a going concern; disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the management of the company either intends to liquidate the company or to cease operations, or has no realistic alternative but to doso .

The board of directors is responsible for overseeing the company?s financial reportingprocess.

Auditor?s Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor?s Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an 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 influencethe economic decisions of users taken on the basis of these standalone 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 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 financial controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Companies Act, 2013, 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 management?s 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 company?s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditor?s Report to the related disclosures in the 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 Auditor?s Report. However, to cease to continue as a going concern.futureeventsorconditions

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

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 standalone financial statements of the current period and are therefore, the key audit matters. We describe these matters in our Auditor?s 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.

Other Matters

We did not audit the financial statement/informationof 2 foreign branches namely Mauritius and Maldives included in the standalone financial statements of the company whose financial statements/financial reflect total assets of Rs. 25,958.78 Lakh (Previous Year Rs. 6,253.05 Lakh) as on 31st March 2022 and total revenue of Rs. 7,591.20 Lakh (Previous Year Rs. 12,544.23 Lakh) for the year ended on that date, as considered in the standalone financial statements. The financial statements/information of said branch has been furnished to us, and our opinion, so far as it relates to the amounts and disclosures included in respect of said branches duly certified by the management have been furnished to us, are solely based on the management certified financial statements/information. Further, the branch at Seychelles has not yet commenced any activity and management has confirmed that there is no financialtransaction in the said branch yet.

Our opinion is not modified in respect of above said matter.

Report on Other Legal and Regulatory Requirements

(1) As required by the Companies (Auditor?s 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"Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order, to the extent applicable.

(2) As required by Section 143(3) audit,we report that: ofthe Act, based on our

a. 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 and proper returns adequate for the purposes of our audit have been received from the branch(es) not visited by us;

c. The balance sheet, the statement of profit and loss including other comprehensive income, statement of changes in equity and the statement of cash flows dealt with by this Report are in agreement with the books of account;

d. In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards prescribed under Section 133 of the Act, read with the companies (Indian Accounting Standards) Rules 2015 as amended;

e. The company being a Government Company, the provisions of Section 164(2) of the Act in respect of disqualification of directors are not applicable to the company in terms of notification no. G.S.R.463(E) dated 5th June, 2015 issued by Ministry of Corporate Affairs, Government of India;

f. With respect to the adequacy of the internal financial controls with reference to standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in "Annexure B".

g. With respect to the other matters to be included in the Auditor?s Report in accordance with the requirements of section 197(16) of the Act, as amended, we are informed that the company being a Government Company, the provisions of section 197 read with schedule V of the Act, relating to managerial remuneration are not applicable to the company in terms of Notification No. G.S.R. 463(E) dated 5th June 2015.

h. With respect to the other matters to be included in the Auditor?s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:

i) The company has disclosed the impact of pending litigations on its financial position in its standalone financial statements. Refer Note No. 40 to the financial statements.

ii) The company has made provision, as required under the applicable laws or Indian Accounting Standards for material foreseeable losses, if any, on long-term contracts.

iii) There has been no delay in transferring the amounts, required to be transferred to the Investor Education and Protection Fund by the company in accordance with the relevant provisions of the Act and Rules made thereunder.

iv) (a) The management has represented that, to the best of its knowledge and belief, as disclosed in the note 53(iv) to the accounts, no funds (which are material either individually or in the aggregate) 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 person or entity, including foreign entity ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoeverby Beneficiaries")or onbehalfoftheCompany("Ultimate 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, as disclosed in the note 53(iv) to the accounts, no funds (which are material either individually or in the aggregate) have been received by the Company from any person or entity, including foreign entity ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by Beneficiaries")or provide any onbehalfoftheFundingParty("Ultimate guarantee, security or the like on behalf of the ultimate beneficiaries;

(c) Based on the audit procedures 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), as provided under (a) and (b) above, contain any material misstatement.

i. As stated in Note 41 to the standalone financial statements; (a) The final dividend proposed in the previous year, declared and paid by the company during the year, is in accordance with Section 123 of the Act, as applicable.

(b) The board of directors of the company have proposed final dividend for the year which is subject to the approval of the members at the ensuing annual general meeting. The amount of dividend proposed is in accordance with section 123 of the Act, as applicable.

(3) On the basis of such checks of the books and records of the company, as we considered appropriate and according to the information and explanations given to us, we are enclosing our report in terms of section 143(5) of the Act, on the directions issued by the Comptroller and Auditor General of India, in "Annexure C" attached.

For Dhawan & Co.
Chartered Accountants
ICAI Firm Registration No. 002864N
Sd/-
Deepak Kapoor
(Partner)
Membership No. 072302
ICAI UDIN Reference No: 22072302AJXFVY1537
Place : New Delhi
Date : May 30, 2022

"ANNEXURE A" TO THE INDEPENDENT AUDITOR?S REPORT

(Referred to in Paragraph 1 under the heading ‘Report on Other Legal and Regulatory Requirements? of our report of even date on the accounts of NBCC (India) Limited (herein referred to as the company), for the year ended March 31, 2022) i. In respect of the company?s property, plant and equipment and intangible assets: (a) The company has maintained proper records showing full particulars, including quantitative details and situation of property, plant and equipment and relevant details of right-of-use assets.

(b) The company has a program of physical verification of property, plant and equipment and right-of-use assets to cover all the assets once every year which, in our opinion, is reasonable having regard to the size of the company and the nature of its assets. According to the information and explanations given to us, no material discrepancies were noticed on such verification.

(c) Based on our examination of the constructed, registered sale deed / transfer deed / conveyance deed provided to us, we report that, the title in respect of self-constructed buildings and title deeds of all other immovable properties (other than properties where the company is the lessee and the lease agreements are duly executed in favour of the lessee), disclosed in the financial statements included under Property, Plant and Equipment are held in the name of the Company as at the balance sheet date except as follows; Property, plant and equipment: Lease / Title deeds for the following land and buildings appearing under the head Land & Building and Right of Use (ROU) Assets-Finance Lease are pending for execution in the name of company:

Gross Carrying Amount (Rs. In lakh)
Property, Plant and Equip- ment:De- scription of Item of Property As at March 31, 2022 As at March 31, 2021 Title deeds held in the name of Whether title deed holder is a promoter, director or relative of promoter/ director or employee of promoter/ director Period Held-since date Reason for not being held in the name of the company along with dispute, if any
Actual allotment for 275 bigas, 11 biswas made on January?1966 and Revised allotment of 29.82 acre made by L&B Department on 03.03.2009.
(i) Land at MBP, Mehrauli Road, Ghitorni, New Delhi. 195.77 195.77 Govt. of NCT Delhi. NO 01-03-1982 The terms of allotment were not accepted by NBCC as the same were in contravention to the settlement arrived at by Sr. Officers and later endorsed by Hon?ble High Court vide its order dated 07.03.2008. NBCC filed a petition against Govt. of NCT of Delhi in the Year 2014 by seeking direction from Govt. of NCT of Delhi to execute the perpetual lease deed in favour of NBCC for 32.46-acre land at Ghitorni.
The case is pending in High Court of Delhi.
(ii) Land at Raipur 348.76 348.76 Naya Raipur Development Authority (NRDA) NO 31-12-2014 As per clause no 5.1(1) of development agreement, lease deed will be executed after construction of 50% of the permissible built up area. The company has not yet started the construction.
(iii) Land at Faridabad 1,218.73 1,218.73 Harayana Developemnt Authority (HUDA) NO 30-06-2015 Hence deed could not be executed. HUDA has raised an additional demand of Rs 416.03 lakh vide letter dated 11.09.2017 for enhanced compensation which was not accepted by the company. Hence the company requested HUDA to cancel the allotment and to refund the amount which is still pending with for their response.
(iv) Office Building at Arun Chambers, Mumbai 1.04 1.04 Mr. Kishandas Parumal NO 01-06-1980 The company has purchased the property from M/s. JAMs Engg (India) who has purchased same from Mr. Kishandas Parumal, The main ownership of the premises was Mr Kishandas Parumal and share certificate of the Society were also issued to him. In absence of original documents, property is pending transfer in company?s name.
(v) Building at Assam - 379.35 - - - The title deed has been executed in favor of the name of company during the F.Y. 2021-22 on 17.02.2022.
(vi) Flat at Kidwai Nagar, New Delhi 687.67 687.67 Ministry of housing and Urban Affairs (MoHUA). The title deeds holder is administra- tive Ministry i.e.MoHUA 01-10-2018 Finalisation of lease deed is under process.
(vii) Office Building at Pragati Vihar, New Delhi 109.04 109.04 Ministry of housing and Urban Affairs (MoHUA). The title deeds holder is administra- tive Ministry i.e. MoHUA 10-11-2004 Company was allotted a piece of land at Pragati Vihar for construction of office complex in the year of 1997. Company constructed the premises and sold the property to various government as well as private organizationlong back. land by Ministry of Housing & Urban Affairs (MoHUA) was pending since inception. Lease deed of said unit shall be executed after executing the lease deed of the said land in favour of company.
Total 2561.01 2940.36

(d) According to the information and explanations given to us and on the basis of our examination of records of the company, the company has not revalued any of its property, plant and equipment (including right- of-use assets) or intangible assets or both during the year.

(e) According to the information and explanations given to us and on the basis of our examination of records of the company, there are no proceedings which have been initiated during the year or are pending against the company as at March 31, 2022 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988(asamendedin .thereunder 2016)andrules made ii.

(a) The physical verification of inventory has been conducted at reasonable intervals by the management during the year. The discrepancies noticed on physical verification of inventory as compared to book records were not material.

(b) The company has not been sanctioned working capital limits in excess of 5 crore, in aggregate, at any points of time during the year, from banks or financial institutions on the basis of security of current assets. Hence, reporting under clause 3(ii)(b) of the Order is not applicable. iii.

(a) The company, during the year under report, has provided advances in the nature of loans to Ministry of Housing and Urban Affairs [MoHUA], Rail Land Development Authority [RLDA] and All India Institute of Medical Sciences [AIIMS] as per detail given hereunder:

Guarantees Securities Loans Advances in the nature of loans
Aggregate amounts granted / provided (including interest) during the year to:
- To Subsidiaries - - - -
- To Joint Ventures - - - -
- To Associates - - - -
- To Others - - - 14,676.99
Balance outstanding as at the balance sheet date (including interest) in respect of above cases:
- To Subsidiaries - - - -
- To Joint Ventures - - - -
- To Associates - - - -
- To Others - - - 1,15,966.63

(b) In our opinion, the terms and conditions of the grant of advances in the nature of loans provided are, prima facie, not prejudicial to the interest of the company.

(c) In respect of advances in the nature of loans granted by the company, the repayment of the advances in the nature of loan and interest thereon is linked to the sales realisation and the repayments are as per terms and conditions of the memorandum of understanding [MOU] with the clients. (d) In respect of advances in the nature of loans granted by the company, there is no overdue amount remaining outstanding as at the balance sheet date as per the terms and conditions of the memorandum of understanding with the clients.

(e) No loan granted by the company which has fallen due during the year, has been renewed or extended or fresh loans granted to settle the overdues of existing loans given to the same parties. (f) The company has not granted any loans or advances in the nature of loans which is repayable on demand. The company has, however, given advances in the nature of loans to‘other parties?, the repayment of which and interest thereon is linked to the sales proceeds of the project as per the terms andconditions clients, without specifying any fixed term for repayment. ofthe MOU withthe iv. According to the informationandexplanationsgiven to us, the company has not granted any loans, or made any investments, or provided any guarantee or security to the parties covered under the provisions of the section 185 and 186 of the Companies Act, 2013. Therefore, provisions of clause (iv) of paragraph 3 of the Order are not applicable to the company. v. According totheinformation and explanations given to us and the records examined by us, the company has not accepted any deposits from public during the year within the meaning of sections 73 to 76 or any other relevant provisions of the Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules 2014 and the rules framed thereunder. Accordingly, provisions of clause 3(v) of the Order are not applicable to the company. vi. We have broadly reviewed the books of accounts maintained by the company in respect of Engineering, Procurement and Construction (EPC) Division and Real Estate Division where, pursuant to the rules made by the Central Government, the maintenanceofcostrecordshasbeenspecifiedundersub-section(1) of section 148 of the Companies Act, 2013 and are of the opinion that, prima facie, the prescribed accounts and records have been so made and maintained. We have, however, not made a detailed examination of the records with a view to determine whether they are accurate or complete. For Project Management and Consultancy (PMC) division, we havebeeninformedthattheseactivities are carried on back-to-back basis by sub- contractors appointed by the company. Hence, the company is not required to maintain cost records for the said division. vii. In respect of statutory dues: (a) According to the information and explanations given to us and the records of the company produced before us for verification, in our opinion, the company is generally regular in depositingwith appropriate provident fund, income tax, goods & service tax, sales authorities tax, duty of custom, duty of excise, value added tax,cess and other material statutory dues, as applicable to it and there are no undisputed statutory dues outstanding as on 31stMarch 2022 for a period of more than six months from the date on which they became payable. We have been informed that the provisions of Employees State Insurance Act are not applicable to the company.

(b) According to the information and explanations given to us and the records of the company examined by us, the particulars of dues of provident fund, income tax, value added tax, service tax and goods and service tax as at 31st March 2022, which have not been deposited on account of dispute are as under:

Name of the Statue Nature of the Dues Amount (Rs. in Lakh) Period to which amount relates Forum where dispute is pending
835.48 2005-06 to 2007-08 CESTAT, Kolkata
480.08 2007-08 to 2013-14 Hon?ble Supreme Court
153.74 2007-08 to 2011-12 Commissioner Appeal, Ranchi
86.17 2009-10 to 2010-11 CESTAT, Kolkata
285.31 2010-11 to 2014-15 CESTAT, Allahabad, U.P.
Finance Act, 1994 Service Tax 871.00 2010-11 to 2014-15 Commissioner, Patna
1,169.25 2012-13 to 16-17 Commissioner, ST, Audit-II Mumbai
17.44 2015-16 Commissioner (Appeals), UP
121.00 2016-17 Commissioner of Central Tax (Appeals-II), Delhi
850.32 April?13 to June?17 CESTAT
574.00 Nov 2001- Nov 2004 CESTAT
1,220.42 2008-09 to 2014-15 JCCT Jharkhand
Jharkhand Value Added Tax 2.66 2012-13 Commissioner (Appeals), Jharkhand
VAT Act,2005 (VAT) 663.12 2016-17 Deputy Commissioner Commercial Tax, Jharkhand
Karnataka VAT Act, 2003 Value Added Tax (VAT) 298.47 59.67 2008-09 2012-13 JCCT(Appeals Tribunal 5),Karnataka JCCT(Appeals 5),Karnataka
Madhya Pradesh VAT Value Added Tax 11.32 2013-14 Appellate Deputy Commissioner of Com- mercial Tax, Satna
Act, 2002 (VAT) 17.97 2015-16 CT(Appeals)
174.23 01.04.2017 to 30.06.2017 Commissioner of Sales Tax Department, Mumbai
135.24 2012-13 Commissioner of Sales Tax Department, Mumbai
Maharash- tra VAT Act, 2002 Value Added Tax (VAT) 41.32 2013-14 Commissioner of Sales Tax Department, Mumbai
396.38 2015-16 Commissioner of Sales Tax Department, Mumbai
324.01 2016-17 Commissioner of Sales Tax Department, Mumbai
Rajasthan VAT Act, 2003 Value Added Tax (VAT) 16.26 2001-02 Ass. Commissioner. Tax. Circle -I, Jaipur Rajasthan
Uttar Pradesh VAT Act, 2008 Value Added Tax (VAT) 274.08 2013-14 Commercial Tax Deptt.-Uttar Pradesh
49.87 2008-09 West Bengal Tax, Tribunal
839.14 2009-10 & 2010-11 JCCT Revision Board
West Bengal Value Added Tax 42.72 2009-10 West Bengal Tax, Tribunal
VAT Act, 2002 (VAT) 411.13 2012-13 West Bengal Tax, Tribunal
2,587.31 2014-15 WB Commercial Tax (Appeal)
657.48 2016-17 WB Revisional Board
Delhi VAT Act, 2004 Value Added Tax (VAT) 40,480.18 2013-14, 2014-15 Appellate Tribunal VAT, New Delhi
Goods & Services Tax Goods & Services Tax 840.99 2017-18 Additional Commissioner (Appeals), TGST Tripura Delhi Appellate Authority of Advance
2,205.36 2018-19 Ruling
125.73 2013-14 CIT (A)
110.99 2016-17 CIT (A)
39.90 2016-17 CIT (A)
Income Tax Act, 1964 Income Tax 18.14 2018-19 CIT (A)
78.44 2019-20 CIT (A)
7.00 2012-13 CIT (A)
739.60 2011-12 Delhi High Court
27.88 2015-16 ITAT
Employee Provident Fund Employee Provident Fund 2.25 2011 Delhi High Court
Employee Provident Fund Employee Provident Fund 152.49 2017 EPFO AT, Chandigarh
Property Tax Property Tax 686.81 2020 Municipal Tax Tribunal, Tis Hazari

viii. According to the information and explanations given to us and on the basis of our examination of the of the company, the companyhasnotsurrenderedordisclosedanytransactions,previously unrecorded as income in the books of account, in the tax assessments under the Income Tax Act, 1961 as income during the year. ix. (a) The company has not taken any loans or other borrowings from any lender. Hence, reporting under clause 3(ix)(a) of the Order is not applicable.

(b) According to the information and explanations given to us and on the basis of procedures performed by us, the company has not been declared willful defaulter by any bank or financial institutionor government or any government authority.

(c) According to the information and explanations given to us and on the basis records of the company, the company has not obtained any term loan during the year and there are no outstanding term loans at the beginning of the year. 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 the company has not raised any funds on short-term basis. Hence, reporting Order is not applicable. underclause 3(ix)(d) ofthe

(e) According to the information and explanations given to us and on an overall examination of the financial statements of the company, we report that the company has not taken any funds from any entity or person on account of or to meet the obligations of its subsidiaries, associates or joint ventures as defined under the Companies Act, 2013. Hence, reporting Order is not applicable. underclause 3(ix)(e) ofthe

(f) According to the information and explanations given to us and on the basis of procedures performed by us, we report that the company has not raised any loan(s) during the year on pledge of securitiesheld in its subsidiaries, joint ventures and associates as defined under Companies Act, 2013. Hence, reporting under clause 3(ix)(f) of the Order is not applicable.

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

(b) During the year, the company has not made any preferential allotment or private placement of shares or convertible debentures (fully or partly or optionally). Hence, reporting under clause 3(x)(b) of the Order is not applicable. xi. (a) According to the information and explanations given to us and based on our examination of books and records of the company, considering the principles of materiality, we report that no fraud by the company or on the company has been noticed or reported during the course of our audit.

(b) We reportthatwehavenotsubmittedanyreportundersub-section(12) of section 143 of the Companies

Act in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government, during the year and up to the date of this report.

(c) As represented to us by the management, there are no whistle blower complaints received by the company during the year (and up to the date of this report). Hence, reporting under clause 3(xi)(c) of the Order is not applicable.

xii. The company is not a Nidhi company and hence, reporting under clause 3(xii) of the

xiii. According to the records of the company examinedbyusandtheinformationandexplanationsgiven to us, the related party transactions entered into by the company during the year have been entered at arm?s length basis in ordinary course of business and are in compliance with section 177 and 188 of the Companies Act, 2013 and have been disclosed in the standalone Ind AS financial statements;

xiv. (a) In our opinion and based on our examination, the company has an adequate internal audit system commensurate with the size and the nature of its business.

(b) We have considered the internal audit reports for the year under audit, issued to the company during the year and till date, in determining the nature, timing and extent of our audit procedures.

xv. According to 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 during the year. Hence, provisions of section are not applicable to the Company. 192 ofthe Companies Act, 2013

xvi. (a) According to 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. Hence, reporting under clause 3(xvi)(a), (b) and (c) of the Order is not applicable.

(b) In our opinion, there is no core investment company within the Group (as defined in the Core Investment Companies (Reserve Bank) Directions, 2016). Hence, reporting under clause 3(xvi)(d) of the Order is not applicable.

xvii. Based on our examination of the books and records of the company, the company has not incurred cash losses during the financial year covered by our audit and the immediately preceding financialyear. xviii. There has been no resignation of the 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 realisation of financial assets and payment of financial liabilities, other information accompanying the financial statements, our knowledge of the Board of Directors and Management plans and based on our examination of the evidence supporting the assumptions, nothing has come to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report indicating existing at the date of balance sheet as and when they fall thatcompanyisnotcapableofmeetingitsliabilities due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as to the future viability of the company. We further state that our reporting is based on the facts up to the date of the audit report and we neithergiveanyguaranteenoranyassurancethat liabilitiesfalling due within a period of one year from the balance sheet date, will get discharged by the company as and when they fall due.

xx.

(a) There are no unspent amounts towards Corporate Social Responsibility (CSR) on other than ongoing projects requiring a transfer to a fund specified in Schedule VII to the Companies Act in compliance with second proviso to sub-section (5) of Section 135 of the said Act. Hence, reporting under clause 3(xx)(a) of the Order is not applicable for the year.

(b) In respect of ongoing projects, the company has transferred unspent Corporate Social Responsibility (CSR) amount as at the end of the previous financial year to a special account within a period of 30 days from the end of the said financial year in compliance with the provision of section 135(6) of the Act.

For Dhawan & Co.
Chartered Accountants
ICAI Firm Registration No.: 002864N
Sd/-
Deepak Kapoor
(Partner)
Membership No. 072302
ICAI UDIN Reference No : 22072302AJXFVY1537
Place : New Delhi
Date : May 30, 2022

"ANNEXURE B" TO THE INDEPENDENT AUDITOR?S REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL

STATEMENTS OF NBCC (INDIA) LIMITED (hereinafter referred to as COMPANY) Report on the InternalFinancialControlsunderClause(i)ofSub-section Section143 of the Companies Act, of 2013 ("the Act")

We have audited the internal financial controls with reference to standalone financial statements of NBCC (INDIA) LIMITED as of March 31, 2022 in conjunctionwith our audit of the standalone financial statements of the company for the year ended on that date.

Management?s Responsibility for Internal Financial Controls

The company?s management is responsible for establishing and maintaining internal financial controls based on internal control with reference to standalone financial statement criteria established by the company considering the essential components of internal control stated in the Guidance Note. These responsibilities include design, implementation and maintenance of adequate internal financial controls that were operating for ensuring the orderly and efficient conduct of its business, including adherence to company?s 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.

Auditor?s Responsibility

Our responsibility is to express an opinion on the company?s internal financial controls with reference to standalone financial statement based on our audit. We conducted our audit in accordance with the Guidance Note and standard on auditing, prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls with reference to standalone financial statements. Those standards and the guidance note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference to standalone financial statements were established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls with reference to standalone financial statements and their operating effectiveness. Our audit of financial controls with reference to standalone financial statements included obtaining an understanding of such internal financial controls, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor?s judgment, including the assessment of the risks of material misstatement of the standalone financial statements, whether due to fraud or error.

We believe that theauditevidencewehaveobtainedissufficient and appropriate to provide a basis for our audit opinion on the company?s internal financial controls with reference to standalone financial statements.

Meaning of Internal Financial Controls with reference to Standalone Financial Statements

A company?s internal financial control with reference to standalone financial statements 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 company?s internal financial control with reference to standalone financial statements includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail,accuratelyandfairlyreflectthe transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions as necessary to permit preparation of financial statements in 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 timelydetection dispositionof the company?s assets that could unauthorizedacquisition,use,or have a material effect on the standalone financial statements.

Inherent Limitations of Internal Financial Controls with reference to standalone financial statements

Because of the inherent limitations of internal financial controls with reference to standalone financial statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to standalone financial statements to future periods are subject to the risk that the internal financial control with reference to standalone financial statements may become inadequate because of changes in conditions, orthat the degree of compliance with the policies or procedures may deteriorate. Opinion

In our opinion, the company has, in all material respects, an adequate internal financial controls with reference to standalone financial statements and such internal financial controls with reference to standalone financial statements were operating effectively as at March 31, 2022, based on the internal control with reference to standalone financial statements 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 (the "Guidance Note").

For Dhawan & Co.
Chartered Accountants
ICAI Firm Registration No.: 002864N
Sd/-
Deepak Kapoor
(Partner)
Membership No. 072302
ICAI UDIN Reference No : 22072302AJXFVY1537
Place : New Delhi
Date : May 30, 2022

"ANNEXURE C" TO INDEPENDENT AUDITOR?S REPORT

Directions indicating the areas to be examined by the Statutory Auditors during the course of audit of annual accounts of NBCC (India) Limited for the year 2021-22 issued by the Comptroller & Auditor General of India under Section 143(5) of the Companies Act, 2013

S. No. Areas Examined Replies Impact on financial statements
1 Whether the company has system in place to process all the accounting transactions through IT system ? If yes, the implications of processing of accounting transactions outside IT system on the integrity of the accounts along with the financial The company has an in house developed ERP system to process all the accounting transactions through IT system.Some manual interventionis necessitated for valuation inventories; however, accounting entries the same are also processed through ERP. implications, if any, may be stated. Nil
2 Whether there is any restructuring of an existingloan or cases of waiver / write off of debts / loans / interest etc. made by a lender to the company due to the company?s inability to repay the loan? If yes, the financial impact may be stated. Whether such cases are properly accounted for? (In case, lender is a Government Company, then this direction is also applicable for Statutory Auditor of lender company) There are no cases of restructuring of any loan or cases of waiver/ write off of debts/ loans/ interest etc. made by any lender due to the company?s inability to repay the loan. Nil
3 Whether funds (grants/subsidy etc.) received / receivable for specific schemes from Central / State Government or its agencies were properly accounted for / its term and conditions? List the cases of deviation. The company has not received any fund for specific schemes from Central / State Agencies during the year. Nil
For Dhawan & Co.
Chartered Accountants
ICAI Firm Registration No.: 002864N
Sd/-
Deepak Kapoor
(Partner)
Membership No. 072302
ICAI UDIN Reference No : 22072302AJXFVY1537
Place : New Delhi
Date : May 30, 2022