To,
The Members,
Relstruct Buildcon Limited
Report on the Audit of the Standalone Financial Statements
Qualified Opinion
We have audited standalone financial statements of Relstruct Buildcon Limited
(“the company”), which comprise the Balance Sheet as at 31st March
2021, the Statement of Profit and Loss and the Cash Flow Statement for the year then
ended, and notes to the financial statement, including a summary of significant accounting
policies and other explanatory information.
In our opinion and to the best of our information and according to the explanations
given to us, the aforesaid financial statements give the information required by the Act
in 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 31st
March, 2021 and profit and its cash flows for the year ended on that date.
Basis for Qualified Opinion
Company does not make loan repayments to DHFL as per the predefined schedule. The
management has not accounted interest in the books of account for the cuurent financial
year. No opinion report from the lender is available for verification.
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Companies Act, 2013 (the Act). Our responsibilities under
those Standards are further described in the Auditor’s Responsibilities for the Audit
of the Standalone Financial Results 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 together with the ethical requirements that are relevant to our audit
of the financial results under the provisions of the Companies Act, 2013 and the Rules
there under, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the 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 financial
statements.
Emphasis of Matter
• There is no material development in projects on hands held as inventory work in
progress or project advance during the audit period.
• The RERA registration held in the name of continuing projects are already
expired and no further procedure has been taken by the company.
Our opinion is not modified in respect of this matter.
Management’s Responsibility for the Standalone Financial Statements
The Company’s Board of Directors is responsible for the matters stated in section
134(5) of the Companies Act, 2013 (“the Act”) with respect to the preparation
and presentation of these financial statements that give a true and fair view of the
financial position, financial performance and cash flows of the Company in accordance with
the accounting principles generally accepted in India, including the Accounting Standards
specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts)
Rules, 2014. This responsibility also includes the maintenance of adequate accounting
records in accordance with the provision of the Act for safeguarding of the assets of the
Company and for preventing and detecting the 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 control, that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and presentation of
the financial statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the
Company’s ability to continue as a going concern, disclosing, as applicable, matter
related to going concern and using the going concern basis of accounting unless management
either intends to liquidate the Company or to cease operations, of has no realistic
alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company’s
financial reporting process.
Auditor’s Responsibilities for the Audit of the Standalone Financial Results
Our objectives are to obtain reasonable assurance about whether the standalone
financial results 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 influence the economic decisions
of users taken on the basis of these standalone financial results.
As part of an audit in accordance with SAs, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
i. Identify and assess the risks of material misstatement of the standalone financial
results, 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.
ii. Obtain an understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the company’s internal control.
iii. Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the Board of Directors.
iv. Conclude on the appropriateness of the 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
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 results 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, future events or conditions may cause the
Company to cease to continue as a going concern.
v. Evaluate the overall presentation, structure and content of the standalone financial
results, including the disclosures, and whether the financial results 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.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor’s Report) Order, 2016 (“the
Order”) issued by the Central Government of India in terms of sub-section (11) of
section 143 of the Act, we give in the Annexure 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 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.
c) The Balance Sheet, the Statement of Profit and Loss, and the Cash Flow statement
dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid financial statements comply with the Accounting
Standards specified under Section 133 of the Act, read with Rule 7 of the Companies
(Accounts) Rules, 2014.
e) On the basis of written representations received from the directors as on 31st
March, 2021, taken on record by the Board of Directors, none of the directors is
disqualified as on 31st March, 2021, from being appointed as a director in
terms of Section 164(2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial
reporting of the Company and the operating effectiveness of such controls, refer to our
separate report in “Annexure B”
g) In our opinion and to the best of our information and according to the explanations
given to us, we report as under with respect to other matters to be included in the
Auditor’s Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014:
i. The Company does not have any pending litigations which would impact its financial
position;
ii. The Company has made provision, as required under the applicable law or accounting
standards, for material foreseeable losses, if any, on long term contracts including
derivative contracts;
iii. There were no amounts which required to be transferred by the Company to the
Investor Education and Protection Fund
The “Annexure A” referred to in paragraph 1 of the Our Report of even date to
the members of Relstruct Buildcon Limited, on the accounts of the company for the year
ended 31st March, 2021.
On the basis of such checks as we considered appropriate and in terms of information
and explanations given to us, we state that:
i. a. The Company has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets.
b. We have been informed that, the fixed assets have been physically verified by the
Management at reasonable intervals. In our opinion, the frequency of verification is
reasonable with regard to the size of the company and nature of assets. According to
information and explanations given to us by the management, no material discrepancy was
noticed on such verification.
c. Company has not any immovable property, accordingly clause 3(i) (c) of the Companies
(Auditor’s Report) Order, 2016 is not applicable.
ii. We have been informed that, inventories have been physically verified by the
management at reasonable intervals. In our opinion, the frequency of verification is
reasonable with regard to the size of company. According to information and explanations
given to us by the management, no material discrepancy was noticed on such verification.
iii. The company has granted unsecured loan, to related company, firms or other parties
covered in the register maintained under section 189 of the Companies Act. (a) in our
opinion the terms and conditions of the grant of such loans are not, prejudicial to the
company’s interest;
iv. In respect of loans, investments, guarantees, and security provisions of section
185 and 186 of the Companies Act, 2013 have been complied with.
v. According to the information and explanation given to us, the company has not
accepted the any deposits from the public within the provisions of Section 73 to 76 of the
Act read with the Companies (Acceptance of Deposits) Rules, 2014 and other relevant
provisions of the Act.
vi. According to the information and explanation given to us, maintenance of cost
records under sub-section (1) of section 148 of the Companies Act, 2013 in respect of the
product dealt with by the company as prescribed by central government is not applicable to
the company.
vii. (a) According to the information and explanation given to us, the company is not
regular in depositing undisputed statutory dues including Provident Fund, Employees’
State Insurance, Income-tax, Sales Tax, service tax, Goods & Service Tax, Duty of
Customs, Duty of Excise, Value Added Tax, Cess and any other statutory dues with the
appropriate authorities, wherever applicable during the year, as per information and
explanations given to us and records examined by us, followings are undisputed arrears of
statutory dues, which are outstanding as at the last day of the concerned financial year
for more than Six months from the date they became payable;
| Name of the Statute |
Nature of Dues |
Amount (Rs) |
Period |
Remarks |
| Professional Tax |
Professional Tax |
800 |
F.Y. 2020-21 |
Unpaid till date |
| VAT |
VAT |
90,228 |
F.Y. 2017-18 |
Unpaid till date |
| Income Tax Act, 1961 |
Tax deducted at source |
54,74,098 |
F.Y. 2018-19 |
Unpaid till date |
| Service Tax |
Service Tax |
20,787 |
F.Y. 2017-18 |
Unpaid till date |
| Income Tax Act, 1961 |
Income Tax demand u/s 154 |
35,59,500 |
A.Y. 2018-19 |
Unpaid till date |
| Income Tax Act, 1961 |
Income Tax demand u/s 1431a |
29,45,750 |
A.Y. 2019-20 |
Unpaid till date |
(b) As per the information and explanation given to us, there are no disputed dues
outstanding on account of Income Tax, sales tax, service tax, goods and service tax, duty
of customs, duty of excise, value added tax.
viii. According to the records made available to us and information and explanation
given to us by the management, no default have been reported by the lending institution.
Also refer Note No. 3 of the Financial Statements.
ix. The company did not raise any money by way of initial public offer or further
public offer (including debt instruments) and term loans during the year hence clause
3(ix) of companies (auditor’s Report) order 2016 is not applicable.
x. According to the information and explanation given to us, no fraud by the company or
on the company by its officers or employees has been noticed or reported during course of
our audit.
xi. The company has paid/provided managerial remuneration in accordance with the
requisite approvals mandated by the provisions of section 197 read with Schedule V to the
Companies Act.
xii. According to the information and explanation given to us the company is not a
nidhi company hence clause 3(xii) of companies (auditor’s Report) order 2016 is not
applicable.
xiii. According to the information and explanation given to us and based on our
examination of the records of the company, all transactions with the related parties are
in compliance with sections 177 and 188 of Companies Act, 2013 where applicable and the
details have been disclosed in the Financial Statements, as required by the applicable
accounting standards.
xiv. According to the information and explanation given to us and based on 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 hence clause 3 (xiv) of companies (auditor’s Report) order 2016 is not
applicable.
xv. According to the information and explanation given to us and based on our
examination of the records of the company, the company has not entered into non cash
transactions with directors or persons connected with him hence clause 3 (xv) of companies
(auditor’s Report) order 2016 is not applicable.
xvi. The company is not required to be registered under section 45-IA of the Reserve
Bank of India, 1934. .
“Annexure B” to the Auditors’ Report
Report on the Internal Financial Controls under Clause (i) of Sub - section 3 of
Section 143 of the Companies Act, 2013
We have audited the internal financial controls over financial reporting of Relstruct
Buildcon Limited as of 31st March, 2021 in conjunction with 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 the internal control over financial reporting criteria
established by the Company considering the essential components of internal control stated
in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting
issued by the Institute of Chartered Accountants of India (‘ICAI’).These
responsibilities include the design, implementation and maintenance of adequate internal
financial controls that were operating effectively for ensuring the orderly and efficient
conduct of its business, including adherence to 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.
Auditors’ Responsibility
Our responsibility is to express an opinion on the Companys internal financial
controls over financial reporting 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”) and the Standards on Auditing, issued by ICAI and deemed
to be prescribed under section 143(10) of the Companies Act, 2013, to the extent
applicable to an audit of internal financial controls, both applicable to an audit of
Internal Financial Controls and, both issued by the Institute of Chartered Accountants of
India. 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 over financial reporting 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 over financial reporting and their operating
effectiveness.
Our audit of internal financial controls over financial reporting included obtaining an
understanding of internal financial controls over financial reporting, 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 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 Company’s internal financial controls
system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting
A companys internal financial control over financial reporting is a process designed
to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A companys internal financial control over financial
reporting includes those policies and procedures that (1) pertain to the maintenance of
records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of 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
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 financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial
reporting, 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 over financial
reporting to future periods are subject to the risk that the internal financial control
over financial reporting 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, the Company has, in all material respects, an adequate internal
financial controls system over financial reporting and such internal financial controls
over financial reporting were operating effectively as at 31st March, 2021, 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.
| Place : Ahmedabad |
For, J P M K and Company |
| Date : 29/06/2021 |
Chartered Accountants |
|
Jitendra Vageriya |
|
Partner |
|
M.No. 114424 |
|
UDIN : 21114424AAAAHB8870 |
+91-9892691696
