NBCC (India) Ltd Auditor Reports

INDEPENDENT AUDITORS REPORT

To the members of NBCC (India) Limited

Revised Report on the Audit of the Standalone Financial Statements

This Revised Independent Auditors Report is being issued to incorporate the effect of the observation made by the Comptroller & Auditor General (C&AG) of India under the supplementary audit conducted as per the provisions of Section 143 of the Companies Act, 2013.

The C&AG observation was pertaining to the reporting on the Clause 3 (vii) (b) of the Companies (Auditors Report) Order 2020 (the Order) being reporting on the disputed statutory dues. The additional reporting on amount deposited under protest has been considered and incorporated in the said Clause of the Order.

In respect of this Revised Report of the Company, we confirm that there is no other change in the opinion as expressed earlier vide our report dated May 28, 2024 having UDIN 24122499BKJRRM6854, on the Standalone Financial Statements of the Company and also none of the figures have undergone any change in the Standalone Financial Statements as at and for the Year Ended March 31, 2024. Accordingly, this Revised Report supersedes our earlier issued report dated May 28, 2024.

Opinion

We have audited the accompanying Standalone Financial Statements of NBCC (India) Limited (herein referred to as "the Company"), which comprise the standalone balance sheet as at March 31, 2024, the standalone statement of profit and loss (including other comprehensive income), the standalone statement of changes in equity and the standalone statement of cash flows for the year then ended and notes to the standalone financial statements including a summary of the material 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, as amended (the "Act") in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2024, and its profit and other 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 Act. Our responsibilities under those Standards are further described in the Auditors Responsibilities for the Audit of the Standalone Financial Statements 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 ("the 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 ICAIs Code of Ethics. We believe that the audit evidence obtained by us is sufficient and appropriate to provide a basis for our audit 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. 55(i) regarding the purchase of a Group Housing plot in Naya Raipur from Naya Raipur Development Authority (NRDA) on lease in the year 2014. The Company has incurred a total cost of Rs. 2195.35 Lakh. The lease deed shall be executed between the owner of association/housing society and NRDA as per the terms of the development agreement. However, the construction on the said land is yet to start.

(ii) Note No. 55(ii) regarding the non-execution of the conveyance deed in favour of the Company and other matters incidental thereto, in respect of the land at Faridabad (Haryana), forming part of the land bank (inventory) involving, in aggregate, a sum of Rs. 13,178.41 Lakh.

(iii) Note No. 55(iii) regarding payment by the Company to Land & Development Office, Ministry of Housing and Urban Affairs as premium for availing additional ground coverage at Companys 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 of Rs. 3,224.45 Lakh, raised by Municipal Corporation of Delhi (Erstwhile South Delhi Municipal Corporation) in respect of additional ground coverage, in the year 2015.

(iv) Note No. 53(vi) regarding developed real estate project in Alwar costing Rs. 5,787.45 Lakh upto March 31, 2024. The Company initiated the sale of the project in year 2014-15, however no sale could be affected. The net realisable value of the project deteriorated, and the Company has made a provision of Rs. 737.33 Lakh towards impairment.

(v) Note No. 55(viii) regarding developed real estate project of Sector- 37 D, Gurugram, which had exhibited structural cracks and related to the reconstruction of the flats/units to the homebuyers/allottees and refund the amount with interest to them. Accordingly, during the year to comply with the vide order dated March 05, 2024,of National Consumer Disputes Redressal Commission (NCDRC), New Delhi in respect of this matter, the Company has made a total Provision of Rs. 13,791.02 Lakh for refund of amount paid by allottees for flats/ units including interest @ 9% and exemplary damage who did not opted for the reconstruction option. The provision of Rs. 5,356.95 Lakh has been made for reconstruction of flats/units for allottees who opted for the reconstruction option. The unutilized provision as was created earlier for buyback of flats/units amounting to Rs. 14,832.92 Lakh has been reversed and write-down the inventory amounting to Rs. 14,041.56 Lakh being excess of carrying cost over salvage value of construction portion of unsold units/flats as determined by the IBBI registered valuer.

In addition to this, a recovery suit has been filed in the High Court of Delhi, "NBCC (India) Limited versus Ramacivil India Construction (P) Ltd." and Others for recovery of Rs. 75,000 Lakh in the matter of above project which is sub judice.

(vi) Note No. 43 (A) (b)(i) and (B) (i)in respect of the demand of Value Added tax including interest and penalty (DVAT Demand) for Rs. 40,480.01 Lakh has been set aside by Honble Appellate Tribunal and remanded back for recalculation of the said tax liability vide its order dated November 10, 2022.

Our opinion is not modified in respect of the 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 Standalone 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.

Description of Key Audit Matters

Accuracy of recognition, measurement, presentation and disclosures of revenues and other related balances in respect of "Revenue from Contracts with Customers" under Ind AS 115 (Revenue Accounting Standard)

The key audit matter	How the matter was addressed in our audit
The application of this accounting standard involves certain key judgments relating to identification of distinct performance obligations, determination of transaction price of identified performance obligations, the appropriateness of the basis used to measure revenue recognized over a period, and disclosures including presentations of balances in the financial statements.	Principal Audit Procedures
An estimated effort is a critical estimate to determine revenue, as it requires consideration of the progress of the contract. Efforts incurred till date; efforts required to complete the remaining performance obligation.	Our audit approach consisted testing of the design and operating effectiveness of internal controls and procedures as follows: Evaluated the effectiveness of control over the preparation of information that are designed to ensure the completeness and accuracy.
Refer Note No. 29 to the Standalone Financial Statements	• 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 changes relating to contracts and related information used in recording and disclosing revenue in accordance with the Ind AS 115.
	• Reviewed some sample contracts to identify 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
The key audit matter	Principal Audit Procedure
The Company has net trade receivables outstanding of Rs. 2,20,951.05 Lakh at the end of March 31, 2024. These balances are related to revenue recognized in line with Ind AS for ongoing contracts and completed contracts. The assessment of its recoverability is a key audit matter in the audit due to its size and high level of Management judgment.	We assessed the Companys internal process to recognize the revenue and review mechanism of trade receivables. Our audit approach consisted testing of the design and operating effectiveness of internal controls and procedures as follows:
Refer Note No. 13 to the Standalone Financial Statements.	• Evaluated the process of invoicing, verification, and reconciliation with customer.
	• 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.

Assessing the carrying value of Inventory and advances paid for land procurements

The key audit matter	How the matter was addressed in our audit
The Companys inventory comprises of Land bank, Real Estate completed projects and Real Estate Construction Work in progress. As at March 31, 2024, the carrying values of inventories amounts to Rs. 1,20,211.12 Lakh.	Principal Audit Procedures
The inventories are carried at the lower of the cost and net realizable value (NRV). The determination of the NRV involves estimates based on prevailing market conditions, current prices, and expected date of commencement and completion of the project, the estimated future selling price, cost to complete projects and selling costs.	Our audit procedures/testing included, among others:
Considering significance of the amount of carrying value of inventories in the Standalone Financial Statements and the involvement of significant estimation and judgement in such assessment of NRV, the same has been considered as key audit matter.	• Read and evaluated the accounting policies and disclosures made in the Standalone Financial Statements with respect to inventories.
Further, the Company has made various advances and deposits to the seller/ intermediaries towards purchase of land during the course of obtaining clear and marketable title, free from all encumbrances and transfer of legal title to the Company, whereupon it is transferred to land stock under inventories.	• Understood and reviewed the Managements process and methodology of using key assumptions for determination of NRV of the inventories.
With respect to land advance given, the net recoverable value is based on the Managements estimates and internal documentation, which include, among other things, the likelihood when the land acquisition would be completed, the expected date of plan approvals for commencement of project, estimation of sale prices and construction costs and Companys business plans in respect of such planned developments.	• Tested the NRV of the inventories to its carrying value in the books on sample basis.
The Company has reassessed its future business plans and key assumptions as at March 31,2024, while assessing the adequacy of carrying value of inventories and land advances.	• Where the Company involved specialists to perform valuations, we also performed the following procedures:
Refer Note No. 11 to the Standalone Financial Statements.	• Obtained and read the valuation report used by the Management for determining the NRV.
	• Considered the independence, competence and objectivity of the specialist involved in determination of valuation.
	• Involved experts to review the assumptions used by the Management specialists.
	• In respect of land advances, our audit procedures included the following:
	• Obtained status update from the Management and verified the underlying documents for related developments.
	• Compared the acquisition cost of the underlying land with current market price in similar locations.
	• Evaluated the Management assessment with respect to recoverability of those advances and changes if any, in the business plans relating to such advances.

Provisions and Contingent Liabilities

The key audit matter	How the matter was addressed in our audit
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.	Principal Audit Procedures
Refer Note No. 43 to the Standalone Financial Statements.	Our audit procedure in response to this key Audit Matter included, among others:
	• Assessment of the process and relevant controls implemented to identify legal and tax litigations and 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.
	• Review of the adequacy of the disclosures in the notes to the financial statements.

Information other than the Standalone Financial Statements and Auditors Report thereon

The Companys Management and Board of Directors are responsible for the preparation of other information. The other information comprises the information included in Management Discussion and Analysis Report, Boards Report including Annexures to Board Report, Business Responsibility and Sustainability Report, Corporate Governance and Shareholders information but does not include the Standalone Financial Statements and our audit report thereon. The other information is expected to be made available to us after the date of this auditors report.

Our opinion on the Standalone 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 the StandaloneFinancial Statements, our responsibility is to read the other 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.

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

The Companys Management and Board of Directors are responsible for the matters stated in section 134(5) of the Act with respect to the preparation of these Standalone 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) specified 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 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, Management and Board of Directors are 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 Board of Directors are also responsible for overseeing the Companys financial reporting process.

Auditors Responsibilities for the Audit of the Standalone Financial Statements

Our objectives are to obtain reasonable assurance about whether the Standalone 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 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 Standalone 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 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 an 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 the Management and Board of Directors.

• Conclude on the appropriateness of Managements and Board of Directors 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 Standalone 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 Standalone Financial Statements, including the disclosures, and whether the Standalone Financial Statements represent the underlying transactions and 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 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.

Other Matter

We did not audit the financial statement/information of 3 foreign branches namely Mauritius, Maldives and Seychelles included in the Standalone Financial Statements of the Company whose financial statements/financial information reflect total assets of Rs. 29,688.34 Lakh (Previous Year Rs. 24,878.47 Lakh) as on March 31, 2024, and total income of Rs. 35621.16 Lakh (Previous Year Rs. 25,224.55 Lakh) for the year ended on that date, as considered in the Standalone Financial Statements. The financial statements/information of said branches have not been audited either by us or by other auditors 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.

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

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 and 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 give in Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.

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

(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 purpose of our audit have been received from the branches not visited by us.

(c) The unaudited financial statements/financial information on the accounts of three branches of the Company has been provided to us duly certified by the Management of the Company and hasbeen received, properly dealt with by us in preparing this report.

(d) The Standalone Balance Sheet, the Standalone Statement of Profit and Loss including Standalone Other Comprehensive Income, the Standalone Statement of Changes in Equity and the Standalone Statement of Cash Flows dealt with by this report are in agreement with the books of account.

(e) In our opinion, the aforesaid Standalone Financial Statements comply with the Indian Accounting Standards specified under Section 133 of the Actread with the Companies (Accounting Standards) Rules, 2015 as amended.

(f) 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 the Ministry of Corporate Affairs, Government of India.

(g) With respect to the adequacy of the internal financial controls with reference to Standalone Financial Statementsof the Company and the operating effectiveness of such controls, refer to our separate report in Annexure B. Our report expresses an unmodified opinion on the adequacy and operating effectiveness of the Companys internal financial controls with reference to Standalone Financial Statements.

(h) With respect to the other matters to be included in the Auditors 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.

(i) With respect to the other matters to be included in the Auditors Report in accordance with the requirements of Rule 11 of the Companies (Audit and Auditors) Rules, 2014, as amended, 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 43to the Standalone Financial Statements.

(ii) The Companyhas made provisions, 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 were 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 stated in note 56(a)(iv) to Standalone Financial Statements, 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 person(s) or entity(ies), including foreign entities ("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 whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") 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, as stated in note 54 (a) (iv)to the Standalone Financial Statements, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities ("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 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 such audit procedures that we 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 (a) and (b) above contain any material misstatement.

(v) As stated in Note 44 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 Companyhas proposed a 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.

(vi) Based on our examination which included test checks, the Company has used an accounting software for maintaining its books of account for the financial year ended March 31, 2024, which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software. Further, during the course of our audit we did not come across any instance of the audit trail feature being tampered with.

As proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable from April 1, 2023, reporting under Clause (g) of Rule 11 of Companies (Audit and Auditors) Rules, 2014 on preservation of audit trail as per the statutory requirements for record retention is not applicable for the financial year ended March 31, 2024.

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

For ASA & Associates LLP

Chartered Accountants

Firm Registration No. 009571N/N500006

Sd/-

Nitin Gupta

Partner

Membership No. 122499

UDIN: 24122499BKJRSZ6965

Place: New Delhi

Date: August 2, 2024

Annexure A to the Independent Auditors Report

[Referred to in paragraph 1 under Report on Other Legal and Regulatory Requirements section of our report of even date]

(i) (a) (A) According to the information and explanations given to us, 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) According to the information and explanations given to us, the Company has maintained proper records showing full particulars of intangible assets. The intangible assets comprise of the ERP system and Website, developed by the Company for processing the accounting transactions and managing business operations respectively,are controlled by the Company but not recognized because of not meeting the recognition criteria in earlier years.

(b) The Company has a regular programme of physical verification of its property, plant, and equipment and right-of-use assets by which the property, plant and equipment and right-of-use assets are verified by the Management according to a phased programme designed to cover all the itemsevery year. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its property, plant, and equipmentincluding right-of-use assets. In accordance with the programme, the Company hasphysically verified property, plant, and equipment and right-of-use assets during the year and no material discrepancies were noticed on such verification.

(c) Based on our examination of the property tax receipts and lease agreement for land on which building is 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 and included under Property, Plant and Equipment including Right-of-use Assets, Investment Property and Assets held for Sale are held in the name of the Company as at the balance sheet date except as follows;

(i) Property, plant, and equipment including Right-of-use Assets:

						(Rs. in lakh)
	Gross Carrying Amount
Property, Plant and Equip- ment:-Descrip- tion of Item of Property	As at March 31, 2024	As at March 31, 2023	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
(i) Land at MBP, Mehrauli Road, Ghitorni, New Delhi.	195.77	195.77	Govt. of NCT Delhi.	NO	01.03.1982	Actual allotment for 275 bigas, 11 biswas made on January 1966 and Revised allotment of 29.82 acre made by L&B Department letter dated 03.03.2009. 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 Honble HighCourt 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 Honble High Court of Delhi to execute the perpetual lease deed in favour of NBCC for 32.46 acre land at Ghitorni. The case is pending in Honble 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 the development agreement, a lease deed will be executed after construction of 50% of the permissible built- up area. The Company has not yet started the construction. Hence deed could not beexecuted.
(iii) Office Building at Arun Chambers, Mumbai		1.04				The share certificate (representing ownership) has been transferred in favour of the Company during the financial year 2023-24, dated March 15, 2024.
(iv) Office Building at Pragati Vihar, New Delhi	109.04	109.04	Ministry of Housing and Urban Affairs- MoHUA	The title deed holder is administrative Ministry i.e., MoHUA	10.11.2004	The Company was allotted a piece of land at Pragati Vihar for construction of an office complex in the year of 1997. Company constructed the premises and sold the property to various Government as well as private organizations long back. Execution of lease deed of land by Ministry of Housing & Urban Affairs (MoHUA) was pending since inception.
Total	653.57	654.61

(ii) Investment property:

						(Rs. in lakh)
	Gross Carrying Amount
Investment property- Description of Item of Property	As at March 31, 2024	As at March 31, 2023	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
Shop at NBCC Place, Pragati Vihar, New Delhi	170.70	170.70	Ministry of Housing & Urban Affairs (MoHUA)	The title deeds holder is administrative Ministry i.e., Ministry of Housing & Urban Affairs (MoHUA)	31.10.2016	The Company was allotted a piece of land at Pragati Vihar for construction of an office complex in the year of 1997. The Company constructed the premises and sold the property to various government as well as private organization
Total	170.70	170.70

(iii) Assets held for sale:

	Gross Carrying Amount
Assets held for sale- Description of Item of Property	As at March 31, 2024	As at March 31, 2023	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
Land at Golf Link, New Delhi	157.97	157.97	Ministry of Housing & Urban Affairs	The title deeds holder is administrative Ministry i.e., Ministry of Housing & Urban Affairs (MoHUA)	01.04.2009	The execution of lease deed is pending with Ministry of Housing & Urban Affairs (MoHUA)
Total	157.97	157.97

(d) According to the information and explanations given to us, 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) Based on the audit procedures performed by us and according to the information, explanations and representations given to us, no proceedings have beeninitiated 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) The physical verification of inventory has been conducted at reasonable intervals by the Management during the year. The discrepancies noted on physical verification of inventory as compared to books records were not material.

(b) 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 been sanctioned any working capital limits in excess of five crore rupees in aggregate from banks and financial institutions on the basis of security of current assets at any point of time of the year. Accordingly, Clause 3(ii)(b) of the Order is not applicable.

(iii)(a) 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 provided advances in the nature of loans to Ministry of Housing and Urban Affairs (MoHUA), Rail Land Development Authority (RLDA), All India Institute of Medical Sciences (AIIMS), Delhi Transport Corporation (DTC) and Learned Supreme Court Receiver Amrapali Projects (collectively referred to as clients/ others) as per the details given here under:

	Guarantees	Securities	Loans	Advances in the nature of loans (Rs. Lakh)
Aggregate amounts granted/provided (including interest) during the year to:
- To Subsidiaries	-	-	-	-
- To Joint Ventures	-	-	-	-
- To Associates	-	-	-	-
- To Others	-	-	-	44,959
Balance outstanding as at the balance sheet date (including interest) in respect of above cases: -
- To Subsidiaries
- To Joint Ventures
- To Associates	-	-	-	-
- To Others	-	-	-	66,734

(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 are linked to the sales realization and the repayments are as per terms and conditions of the memorandum of understanding [MOU] with the clients.Further, as per the information and explanation provided to us, the advances in the nature of loan given for the Amrapali Projects during the year, represented by Learned Supreme Court Receiver, the repayment of principal and interest on the same has been stipulated and is repayable by March 31, 2025, as per the terms of the same.

(d) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there is no overdue amount for more than ninety days in respect of advances in the nature of loans given.

(e) According to the information and explanations given to us and on the basis of our examination of the records of the Company, there is no loan or advance in the nature of loan granted falling due during the year, which has been renewed or extended or fresh loans granted to settle the overdues of existing loans given to same parties.

(f) The Company has not granted any loans or advances in the nature of loans which are repayable on demand. The Company has, however, given advances in the nature of loans to clients, the repayment of which and interest thereon is linked to the sales proceeds of the project as per the terms and conditions of the MOU with the clients, without specifying any fixed term for repayment except the advances in the nature of loans given for Amrapali projects as stated above in Paragraph (iii) (c).

(iv) According to the information and explanations given 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, the provisions of Clause (iv) of paragraph 3 of the Order are not applicable.

(v) According to the information 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.

(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 maintenance of cost records has been specified under sub-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 determining whether they are accurate or complete. For Project Management and Consultancy (PMC) division, we have been informed that these activities are carried out on a 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) (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 depositing with appropriate authorities undisputed statutory dues includingGoods and Services Tax, provident fund, employees state insurance, income-tax, sales-tax, service tax, duty of customs, 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 March 31, 2024 for a period of more than six months from the date on which they became payable.

(b) According to the information and explanations given to us, there are no statutory dues of Goods and Service Tax, Provident Fund, Employees State Insurance, Income-tax, Sales tax, Service tax, Duty of Customs, Value added tax, Cess or other statutory dues as applicable which have not been deposited by the Company on account of any dispute except for the following:

Name of the Statute	Nature of Dues	(Rs in Lakh)	Period to which the amount relates	Forum where the dispute is pending
		480.08	2007-08 to 2013-14	Honble Supreme Court
		153.74	2007-08 to 2011-12	Commissioner (Appeals), 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	CESTAT, Kolkata
		17.44	2015-16	Commissioner (Appeals), UP
		850.32	April13 to June17	CESTAT, Chandigarh
		1,364.62	Oct13 to June17	CESTAT
		100.48	2015-16 to 2016-17	CESTAT, Hyderabad
		111.69	2008-09 to 2014-15	JCCT Jharkhand
Jharkhand VAT Act, 2005	Value Added Tax (VAT)	663.12	2016-17	Deputy Commissioner Commercial Tax, Jharkhand
		44.59	2017-18	DCCT, Jharkhand
Karnataka VAT Act, 2003	Value Added Tax (VAT)	298.47	2008-09	JCCT (Appeals Tribunal 5), Karnataka
		59.67	2012-13	JCCT (Appeals 5), Karnataka
		130.68	01.04.2017 to 30.06.2017	Commissioner of Sales Tax, Mumbai
Maharashtra VAT Act, 2002	Value Added Tax (VAT)	396.38	2015-16	Commissioner of Sales Tax, Mumbai
		324.01	2016-17	Commissioner of Sales Tax, Mumbai
		839.15	2009-10 & 2010-11	JCCT Revision Board
West Bengal VAT Act		411.13	2012-13	West Bengal Tax, Tribunal
	Value Added lax (VAi)	2,587.31	2014-15	WB Commercial Tax, Tribunal
		657.48	2016-17	WB Revisional Board
		2,205.36	2018-19	Delhi Appellate Authority of Advance Ruling
		16.43	2017-18	CGST & Central Tax (Appeals)
		484.15	2017-18 & 2018-19	Commissioner (Appeals) GST, Vadodara
Goods & Service Tax	Goods & Service Tax	102.29	2017-18	Commissioner (Appeals) GST, Jammu
		123.39	2017-18	Commissioner (Appeals) GST, Raigarh
		1,039.64	2017-18	Commissioner (Appeals) GST, Chennai
		125.73	2013-14	CIT (Appeals)
		110.99	2016-17	CIT (Appeals)
		39.90	2016-17	CIT (Appeals)
Income Tax Act, 1961		18.14	2018-19	CIT (Appeals)
	Income Tax	78.44	2019-20	CIT (Appeals)
		7.00	2012-13	CIT (Appeals)
		715.06	2011-12	Delhi High Court
		33.76	2012-13	CIT (Appeals)
Employee Provident Fund		2.25	2011	Delhi High Court
	Employee Provident Fund	152.49	2017	EPFO, Chandigarh

In addition to the above matters, during the financial year 2015-16, the Company had been deposited Rs. 739.96 Lakh as under protest with the South Delhi Municipal Corporation (SDMC) against a property tax demand. Out of this, Rs 53.15 Lakh had been charged as expense based on the Companys own assessment and the Company is contesting against the balance tax demand of Rs 686.81 Lakh. Later on, SDMC had been refunded Rs. 162.77 Lakh, hence the balance amount of Rs 524.04 Lakh remains deposited with SDMC.

(viii) According to the information and explanations given to us, there are no transactions not recorded in the books of account which have been surrendered or disclosed as income during the year in the tax assessments under the Income-tax Act, 1961. Accordingly, the reporting under Clause 3(viii) of the Order is not applicable.

(ix) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the Company did not have any loans or borrowings from any lender during the year. Accordingly, Clause 3(ix)(a) of the Order is not applicable.

(b) According to the information and explanations given to us, the Company has not been declared a willful defaulter by any bank or financial institution or any other lender till the date of our audit report.

(c) 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 raised money by way of term loans during the year. Accordingly, Clause 3(ix)(c) of the Order is not applicable.

(d) According to the information and explanations given to us and on an overall examination of the balance sheet of the Company, we report that no funds raised on a short-term basis have been used for long-term purposes by the Company.

(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 subsidiariesand joint ventures as defined under Companies Act, 2013.

(f) According to the information and explanations given to us and based on the audit procedures performed by us, we report that the Company has not raised any loans during the year on the pledge of securities held in its subsidiaries. Accordingly, the reporting under Clause 3(ix)(f) of the Order is not applicable.

(x) (a) According to the information and explanations given to us, the Company has not raised any money by way of an initial public offer or further public offer (including debt instruments) during the year. Accordingly, the reporting under Clause 3(x)(a) of the Order is not applicable.

(b) 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 preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly, Clause 3(x)(b) of the Order is not applicable.

(xi) (a) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India and according to the information and explanations given to us, we have neither come across any instance offraud by the Company or on the Company noticed or reported during the year, nor have we been informed of any such case by the Management.

(b) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, report under section 143(12) of the Act, in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014 was not required to be filed with the Central Government. Accordingly, the reporting under Clause 3(xi)(b) of the Order is not applicable.

(c) As represented to us by the Management, there have been no whistleblower complaints received by the Company during the year (up to the date of this report). Hence, reporting under Clause 3(xii) (c) of the Order is not applicable.

(xii) According to the information and explanations given to us, the Company is not a Nidhi Company and the Nidhi Rules, 2014 are not applicable to it. Accordingly, the reporting under Clause 3(xii) of the Order is not applicable.

(xiii) In our opinion and according to the records of the Company examined by us and the information and explanations given to us, the related party transactions entered into by the Company during the year have been entered at arms 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 Financial Statements.

(xiv) (a) In our opinion and according to the information and explanations given to us and based on our examination, the Company has an internal audit system commensurate with the size and 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 the information and explanations given to us, the Company has not entered into any non-cash transactions with its directors or persons connected with them during the year and hence, the provisions of Section 192 of the Act are not applicable to the Company. Accordingly, the reporting under Clause 3(xv) of the Order is not applicable.

(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. Accordingly, the reporting under Clause 3(xvi)(a) of the Order is not applicable.

(b) In our opinion and according to the information and explanations given to us, the Company has not conducted any Non-Banking Financial or Housing Finance activities. Accordingly, the reporting under Clause 3(xvi)(b) of the Order is not applicable.

(c) In our opinion and according to the information and explanations given to us, the Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of India. Accordingly, the reporting under Clauses 3(xvi)(c)of the Order is not applicable.

(d) As represented by the Management, the Group does not have any Core Investment Company as part of the Group as per the definition of Group contained in the Core Investment Companies (Reserve Bank) Directions, 2016 and hence the reporting under Clause3 (xvi)(d) of the Order is not applicable.

(xvii) In our opinion and according to the information and explanations given to us, the Company has not incurred cash losses in the current financial year as well as in the immediately preceding financial year. Accordingly, the reporting under Clause 3(xvii) of the Order is not applicable.

(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, 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 that the Company is not 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. 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 neither give any guarantee nor any assurance that all liabilities falling 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) As stated in the note 37(B) of Standalone Financial Statements:

(a) In respect of other than ongoing projects, the Company has transferred unspent amount to a Fund specified in Schedule VII to the Companies Act within a period of six months of the expiry of the financial year in compliance with second proviso to sub-section (5) of section 135 of the Act.

(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 ASA & Associates LLP

Chartered Accountants

Firm Registration No. 009571N/N500006

Sd/-

Nitin Gupta

Partner

Membership No. 122499

UDIN: 24122499BKJRSZ6965

Place: New Delhi

Date: August 2, 2024

Annexure B to the Independent Auditors Report

[Referred to in paragraph 2(g) under Report on Other Legal and Regulatory Requirements section of our report of even date]

Report on the Internal Financial Controls with reference to financial statements under Clause (i) of sub-section (3) of Section 143 of the Companies Act, 2013 ("the Act")

We have audited the internal financial controls with reference to financial statements of NBCC (India) Limited (the Company) as of March 31, 2024, in conjunction with our audit of Standalone Financial Statements of the Company for the year ended on that date.

Managements Responsibility for Internal Financial Controls

The Companys Management and Board of Directors are 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. 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 the 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 Act.

Auditors Responsibility

Our responsibility is to express an opinion on the Companys internal financial controls with reference to financial statements of the Company based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting ("the Guidance Note") issued by the Institute of Chartered Accountants of India and the Standards on Auditing prescribed under Section 143(10) of the Act, to the extent applicable to an audit of internal financial controls. 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 the Standalone Financial Statements was 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 system with reference to Standalone Financial Statements and their operating effectiveness. Our audit of internal financial controls with reference to Standalone Financial Statements included obtaining an understanding of internal financial controls with reference to Standalone Financial Statements, 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 auditors judgement, including the assessment of the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Companys internal financial controls system with reference to Standalone Financial Statements.

Meaning of Internal Financial Controls with reference to Standalone Financial Statements

A Companys 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 Companys 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, 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.

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 the Standalone Financial Statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion, to the best of our information and according to the explanations given to us, the Company has, in all material respects, an adequate internal financial controls system with reference toStandalone Financial Statements and such internal financial controls with reference to Standalone Financial Statements were operating effectively as at March 31, 2024, based on the criteria for internal financial control with reference to Standalone Financial Statements 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.

For ASA & Associates LLP

Chartered Accountants

Firm Registration No. 009571N/N500006

Sd/-

Nitin Gupta

Partner

Membership No. 122499

UDIN: 24122499BKJRSZ6965

Place: New Delhi

Date: August 2, 2024

Annexure C to the Independent Auditors Report

[Referred to in paragraph 3 under Report on Other Legal and Regulatory Requirements section of our report of even date]

S. No. Directions u/s 143(5) of the Companies Act, 2013	Auditors reply on action taken on the directions	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 implications, if any, may be stated.	The Company has an in-house-developed ERP system to process the accounting transactions through an IT system.	NIL
	The Company is using separate software Clear Tax for GST E-invoicing, Fixed Asset Management System (FAMS) for fixed asset register anddepreciation calculation and CRM software for real estate customer data.Some manual intervention is being done for valuation of inventories; however, accounting entries for the same are processed through ERP.
2 Whether there is any restructuring of an existing loan or cases of waiver/write off of debts/loans/interest etc. made by a lender to the Company due to the Companys 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)	As per the information and explanations given to us, the Company has not taken any loan and hence the Clause is not applicable to the Company.	NIL
3 Whether funds (grants/subsidy etc.) received/receivable for specific schemes from Central/State Government or its agencies were properly accounted for/utilized as per its term and conditions? List the cases of deviations.	As per the information and explanations given to us, no funds (grants/ subsidy) have been received/ receivable for any specific schemes from Central/ State agencies during the financial year 2023-24.	NIL

For ASA & Associates LLP

Chartered Accountants

Firm Registration No. 009571N/N500006

Sd/-

Nitin Gupta

Partner

Membership No. 122499

UDIN: 24122499BKJRSZ6965

Place: New Delhi

Date: August 2, 2024