Report on the audit of the Standalone Financial
Statements
Opinion
1. We have audited the accompanying standalone financial statements of D. B. Corp Limited (“the Company”), which comprise the Standalone Balance Sheet as at March 31, 2021, the Standalone Statement of Profit and Loss (including Other Comprehensive Income), Standalone Statement of Changes in Equity and Standalone Statement of Cash Flows for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as “the standalone financial statements”).
2. 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 accounting principles generally accepted in India, of the state of affairs of the Company as at March 31,2021 and total comprehensive income (comprising of profit and other comprehensive loss), changes in equity and its cash flows for the year then ended.
Basis for opinion
3. We conducted our audit 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 Auditor’s 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 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 thereunder, 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.
Key audit matters
4. 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.
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Key audit matter
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How our audit addressed the key audit matter
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Assessment of carrying value of Investment Properties (including advances for properties)
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We performed the following procedures, amongst others:
- Assessed the design and tested the operating
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(Refer Notes 2.4, 2.6, 5 and 10 to the standalone
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effectiveness of key controls relating to assessment of
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financial statements)
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appropriateness of the carrying values of investment
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The standalone financial statements of the Company
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properties and advances for properties under
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include investment properties of '' 984.03 Million and advance for properties of '' 639.74 Million as at March
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construction.
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31,2021.
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- Evaluated management’s procedures for identification of triggers for impairment to the carrying values of
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Investment properties are measured at cost less
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investment properties and assessment of recoverability
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accumulated depreciation and impairment, if any. Advances for investment properties are measured at
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of the advances against properties.
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cost less impairment, if any.
Management tests these assets for impairment
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- Evaluated the competency and capabilities of the external property valuers engaged by the Company.
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whenever events or changes in circumstances indicate
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- Assessed on test check basis, the reasonableness
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that the carrying amount may not be recoverable.
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of the valuation of properties as per the reports of the
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Property valuations are carried out by third party
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external valuers, by comparing the rates of similar
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valuers engaged by the Company, for the selected
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property in the vicinity area from independent property
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investment properties. The value of investment properties (including properties under construction)
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web portals and/ or government notified circle rates.
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is dependent on the valuation methodology adopted,
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- Verified on test check the basis, the underlying property
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inputs into the valuation model and factors such as
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documents and other records for determination of the
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prevailing market conditions, the individual nature, condition and location of each property.
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Company’s right over the properties.
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Key audit matter
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How our audit addressed the key audit matter
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We focused on this matter because of the significant
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- Verified, the physical existence and progress of the
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balance of investment properties (and the advances for properties under construction) in the Balance
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constructions for the samples selected.
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Sheet and inherently subjective nature of investment
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- Evaluated the Company’s policy for making provisions
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property valuations due to the use of assumptions in
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for doubtful advances against properties and examined
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the valuation methodology.
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workings for provision made towards such advances.
- Checked mathematical accuracy of the Company’s computations of impairment charge, wherever impairment was identified.
- Tested adequacy of disclosures made in the standalone financial statements.
Based on the above procedures performed, we did not come across any material exceptions in the management’s assessment of the carrying values of the investment properties (including advances against properties).
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Appropriateness of provision for expected credit loss against trade receivables
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We performed the following procedures, amongst others:
- Assessed the design and tested the operating
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(Refer notes 2.21, 12 and 42 to the Standalone
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effectiveness of key controls relating to determination
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Financial Statements)
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of estimated credit loss.
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The Company has receivables aggregating to
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- We evaluated Company’s assessment of the
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'' 5,776.47 Million as of March 31, 2021 against which
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assumptions used in the impairment provision
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the Company has recognised a provision for expected
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matrix. These considerations include whether there
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credit loss of '' 807.46 Million as on that date.
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are regular receipts from the customers, bad debts and Company’s past collection history as well as an
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The Company assesses the provision for receivables
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assessment of the customers’ credit ability to make
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based on Expected Credit Loss (ECL) model as per Ind AS 109, Financial Instruments and carries the trade
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payments.
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receivable balances at an amount which approximates
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- Obtained the aging analysis of trade receivables
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their realisable value.
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and on a sample basis, tested the aging of trade receivables at year end and enquired the reasons of
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The Company evaluates and calculates the expected credit losses using a provision matrix based on
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any long outstanding amounts.
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historical credit loss experience, specific reviews of
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- On a test-check basis, verified receipts subsequent to
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customer accounts as well as experience with such
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the financial year-end relating to the trade receivable
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customers, current economic and business conditions.
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balances outstanding as at March 31,2021.
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The appropriateness of the provision for expected
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- Checked mathematical accuracy of the Company’s
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credit loss has been determined to be a key audit matter as it is subjective due to the high degree of
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computations of provision for loss allowance.
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judgment applied by the Company in determining the
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- Tested adequacy of disclosures made in the standalone
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provision matrix and considering the significance of the aged trade receivables balances and the related
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financial statements.
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estimation uncertainty including covid-19 related
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Based on our work as stated above, no material exceptions
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uncertainties.
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were observed in respect of management’s assessment of provision for expected credit loss against trade receivables.
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Other Information
5. The Company’s Board of Directors is responsible for the other information. The other information comprises the information included in the Annual report, but does not include the standalone financial statements and our auditor’s report thereon. The Annual report 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 and we will not express any form of assurance conclusion thereon.
In connection with our audit of the standalone financial 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.
When we read the Annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance and take appropriate action as applicable under the relevant laws and regulations.
Responsibilities of management and those charged with
governance for the standalone financial statements
6. The Company’s Board of Directors is 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, changes in equity 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. 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.
7. In preparing the standalone financial statements, management 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 management either intends to liquidate the Company or to cease operations, or 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 statements
8. 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 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 statements.
9. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional scepticism 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 control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls with reference to standalone financial statements 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 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 auditor’s 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.
10. 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.
11. 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.
12. 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.
Report on other legal and regulatory requirements
13. 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 B”, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
14. 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 Standalone Balance Sheet, the Standalone Statement of Profit and Loss (including Other Comprehensive Income), the Standalone Statement of Changes in Equity and Standalone Statement of Cash Flow 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 Accounting Standards specified under Section 133 of the Act.
(e) On the basis of the written representations received from the directors as on March 31,2021 taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 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 with reference to standalone financial statements of the Company and the operating effectiveness of such controls, refer to our separate Report in “Annexure A”.
(g) 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 36 to the standalone financial statements;
ii. The Company has long-term contracts as at March 31, 2021 for which there were no material foreseeable losses. The Company did not have any long-term derivative contracts as at March 31,2021.
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
iv. The reporting on disclosures relating to Specified Bank Notes is not applicable to the Company for the year ended March 31,2021.
15. The Company has paid/ provided for managerial remuneration in accordance with the requisite approvals
mandated by the provisions of Section 197 read with Schedule V to the Act.
For Price Waterhouse For Gupta Mittal & Co.
Chartered Accountants LLP Chartered Accountants
Firm Registration Number: Firm Registration Number:
012754N/N500016 009973C
Jeetendra Mirchandani Shilpa Gupta
Partner Partner
Membership Number: Membership Number:
48125 403763
Place: Pune Place: Bhopal
Date: June 17, 2021 Date: June 17, 2021
UDIN: 21048125AAAACS9318 UDIN: 21403763AAAADQ1917
