Mar 31, 2023
CREST VENTURES LIMITED
Report on the Audit of the Standalone Financial Statements for the year ended 31 March, 2023
1. Opinion
We have audited the accompanying standalone financial statements of Crest Ventures Limited (âthe Companyâ), which comprise the balance sheet as at 31 March, 2023, the statement of profit and loss (including other comprehensive income), the statement of changes in equity and the statement of cash flows for the year then ended and notes to the standalone financial statements including a summary of the significant accounting policies and other explanatory information (hereinafter referred to as the âstandalone financial statementsâ).
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 (âthe Actâ) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, of the state of affairs of the Company as at 31 March, 2023, its profit, total comprehensive income, changes in equity and its cash flows for the year ended on that date.
2. Basis for opinion
We conducted our audit of the standalone financial statements in accordance with the Standards on Auditing (SAs) prescribed under Section 143(10) of the Act. Our responsibilities under those SAs are further described in the Auditorâs 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 (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 thereunder and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAIâs 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 are those matters that, in our professional judgment, were of most significance in our audit of the standalone financial statements of the current year. 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.
Key Audit Matter |
Auditorsâ Response |
Expected Credit Loss under Ind AS 109 âFinancial Instrumentsâ The Company recognises Expected Credit Losses (ECL) on loan assets under Ind AS 109 âFinancial Instrumentsâ based on the Expected Credit Loss model developed by the Company. The estimation of expected credit loss on financial instruments involves significant judgement and estimates. Key estimates involve determining Exposure at Default (EAD) and Probability at Default (PD) using historical information. Hence, we have considered the estimation of ECL as a Key Audit Matter. Refer Note 48(a) (Risk Management) to the standalone financial statements. |
- Assessed the accounting policy for impairment of financial assets and its compliance with Ind AS 109. - Obtained an understanding of the Companyâs Expected Credit Loss (ECL) calculation and the underlying assumptions. - Tested the key controls over the assessment and identification of significant increase in credit risk and staging of assets. - Sample testing of the accuracy and appropriateness of information used in the estimation. - Tested the arithmetical accuracy of the computation of PD and also performed analytical procedures to verify the reasonableness of the computation. - Assessed the disclosure made in relation to Ind AS 109 for ECL allowance. Further, we also assessed whether the disclosure of key judgements and assumptions are adequate. |
4. Other information
The Companyâs Board of Directors are responsible for the preparation of the other information. The other information comprises the information included in the Boardâs Report including annexures thereto, Management Discussion and Analysis, Report on Corporate Governance, but does not include the financial statements and our auditorâs report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance or conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or other information obtained during the course of our audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
5. Responsibilities of management and those charged with governance for the standalone financial statements
The Companyâs 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 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 Ind AS prescribed under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding 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 is responsible for assessing the Companyâs 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 Companyâs financial reporting process.
6. Auditorâs responsibility 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 auditorâs 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 control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Company has adequate internal financial controls system in place and the operating effectiveness of such controls.
⢠Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
⢠Conclude on the appropriateness of managementâs 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 Companyâs ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorâs 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 auditorâs 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 financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditorâs 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.
The financial statements of the Company for the year ended 31 March, 2022 were audited and reported by another firm of Chartered Accountants Pathak H. D. & Associates LLP vide their report dated 26 May, 2022. The balance sheet as at 31 March, 2022 as per the audited standalone financial statements, regrouped or recasted wherever considered necessary and have been considered as opening balances for the purpose of these financial statements.
7. Report on other legal and regulatory requirements
I. As required by the Companies (Auditorâs Report) Order, 2020 issued by the Central Government of India in terms of Section 143(11) of the Act (âthe Orderâ), 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 the âAnnexure Aâ, a statement on the matters specified in the paragraph 3 and 4 of the Order.
II. 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 (including other comprehensive income), the statement of changes in equity and the statement of cash flows dealt with by this Report are in agreement with the books of accounts;
d) In our opinion, the aforesaid standalone financial statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with the Companies (Indian Accounting Standards) Rules, 2015, as amended;
e) On the basis of written representations received from the directors of the Company and taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2023 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 âAnnexure Bâ;
g) With respect to the other matters to be included in the Auditorâs Report in accordance with the requirements of Section 197(16) of the Act, as amended:
In our opinion and to the best of our information and according to the explanations given to us, the remuneration paid/ payable by the Company to its directors during the year is in accordance with the provisions of Section 197 of the Act;
h) With respect to the other matters to be included in the Auditorâs Report in accordance with 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 43 to the standalone financial statements;
ii. The Company did not have any long-term contracts including derivative contracts having any material foreseeable losses; and
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company during the year.
iv a) The management has represented, that, to the best of its knowledge and belief, as referred in note 62(c) in the notes 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) during the year by the Company to or in any other persons or entities, including foreign entities (âIntermediariesâ), 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 (âUltimate Beneficiariesâ) 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 referred in note 62(c) in the notes to standalone financial statements, no funds have been received by the Company from any persons or entities, including foreign entities (âFunding Partiesâ) during the year, 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 (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; and
c) Based on the information and details provided and other audit procedures followed, nothing has come to our notice that has caused us to believe that the representations under sub clause iv(a) and (b) contain any material misstatement.
v. As stated in note 40 to the standalone financial statements:
a) The final dividend proposed in the previous year, declared and paid by the Company during the year is in accordance with Section 123 of the Act, as applicable.
b) The Board of Directors of the Company have proposed final dividend for the year which is subject to the approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with Section 123 of the Act, as applicable.
vi. Proviso of Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of accounts using accounting software which has a feature of recording audit trail (edit log) facility is applicable to the Company with effect from 1 April, 2023, and accordingly, reporting under Rule 11 (g) of the Companies (Audit and Auditors) Rules 2014 is not applicable for the financial year ended 31 March, 2023.
Chartered Accountants
Firm Registration Number: 101169W/W-100035
Partner
Membership Number 107832
Mumbai, 27 May 2023 UDIN: 23107832BGWAXU5710
Mar 31, 2018
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Crest Ventures Limited (âthe Companyâ), which comprise the Balance Sheet as at March 31, 2018, the Statement of Profit and Loss and the Cash Flow Statement for the year ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and the 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 Companies (Accounts) Rules, 2014. 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 the 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under. We conducted our audit in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India, specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
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 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, 2018 and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
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 purpose of our audit;
(b) In our opinion proper books of account as required by law have been kept by the Company so far as 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 standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act read with Rule 7 of Companies (Accounts) Rules, 2014;
(e) On the basis of written representations received from the directors as on March 31, 2018, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2018, from being appointed as a director in terms of Section 164(2) of the Companies Act, 2013;
(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 âAnnexure Bâ to this report;
(g) With respect to the other matters to be included in the Auditorâs 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 financial statements -refer note 37 to the financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses; and
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
Annexure âAâ to the Independent Auditorâs Report referred to in paragraph 1 under the heading of âReport on other legal and regulatory requirementsâ of our report of even date
i. In respect of its fixed assets :
a. The Company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets on the basis of available information.
b. As explained to us, all the fixed assets have been physically verified by the management in a phased periodical manner, which in our opinion is reasonable, having regard to the size of the Company and nature of its assets. No material discrepancies were noticed on such physical verification.
c. In our opinion and according to the information and explanations given to us, we report that, the title deeds of immovable property are held in the name of the Company.
ii. In respect of its inventories:
As explained to us, inventories consist of realty work in progress representing properties under construction. According to the information and explanations given to us, physical verification of inventories have been conducted at reasonable intervals by the management, which in our opinion is reasonable, having regard to the size of the Company and nature of its inventories. No material discrepancies were noticed on such physical verification.
iii. In respect of loans, secured or unsecured, granted by the Company to companies, firms, limited liability partnerships or other parties covered in the register maintained under Section 189 of the Act:
a) The terms and conditions of the grant of such loans are, in our opinion, prima facie, not prejudicial to the Companyâs interest.
b) The schedule of repayment of principal and interest has been stipulated for the loans granted and the repayment/ receipts are regular.
c) The principal and interest are not overdue in respect of loans granted to companies, firms, limited liability partnerships and other parties listed in the register maintained under section 189 of the Companies Act, 2013.
iv. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and Section 186 of the Act.
v. According to the information and explanations given to us, the Company has not accepted any deposits within the meaning of provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Rules framed there under. Therefore, the provisions of clause (v) of paragraph 3 of the Order are not applicable to the Company.
vi. To the best of our knowledge and explanations given to us, the Central Government has not prescribed the maintenance of cost records under sub-section (1) of Section 148 of the Act in respect of the activities undertaken by the Company.
vii. In respect of statutory dues :
a. According to the records of the Company, undisputed statutory dues including goods and services tax, provident fund, income-tax, sales-tax, service tax, duty of customs, value added tax, cess and any other statutory dues as applicable to it have been regularly deposited with appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at March 31, 2018 for a period of more than six months from the date of becoming payable.
b. On the basis of our examination of accounts and documents on records of the Company and information and explanations given to us upon enquiries in this regard, there are no disputed amounts payable in respect of goods and services tax, income tax, sales tax, service tax and duty/cess as applicable to it on account of any dispute, which have not been deposited except the disputed statutory dues aggregating to '' 795,226 on account of disputed matters pending before the appropriate authorities as under:
Sr. No. |
Name of Statue |
Nature of Dues |
Amount in Rs. |
Assessment year to which the amount relates |
Forum where dispute is Pending |
1 |
Income Tax Act, 1961 |
Income Tax |
182,233 |
2010-11 |
ITAT |
2 |
Income Tax Act, 1961 |
Income Tax |
611,673 |
2011-12 |
ITAT |
3 |
Income Tax Act, 1961 |
Income Tax |
1,320 |
2012-13 |
ITAT |
viii. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of loans to its financial institutions or bankers or government. The Company has not raised loans by issue of debentures.
ix. The money raised by term loans has been applied for the purpose for which they are raised. The Company has not raised money by way of initial public offer or further public offer (including debt instruments) during the year.
x. Based on the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
xi. In our opinion and according to the information and explanations given to us, managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
xii. In our opinion Company is not a nidhi Company. Therefore, the provisions of clause (xii) of paragraph 3 of the Order are not applicable to the Company.
xiii. In respect of transactions with related parties:
In our opinion and according to the information and explanations given to us, all transactions with related parties are in compliance with Sections 177 and 188 of the Act and their details have been disclosed in the financial statements etc., as required by the applicable accounting standards.
xiv. In our opinion and according to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year and hence clause (xiv) of paragraph 3 of the Order is not applicable to the Company.
xv. In our opinion and according to the information and explanations given to us, the Company has not entered into any non-cash transaction with the directors or persons connected with him and covered under Section 192 of the Act. Hence, clause (xv) of the paragraph 3 of the Order is not applicable to the Company.
xvi. Based on information and explanation given to us, the Company is required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934 and necessary registration has been obtained by the Company.
Annexure âBâ to the Independent Auditorâs Report referred to in paragraph 2(f) under the heading âReport on other legal and regulatory requirementsâ of our report of even date
Report on the Internal Financial Controls under clause (i) of sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the Internal Financial Control over financial reporting of Crest Ventures Limited (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone financial statements of the Company for the year then ended.
Management Responsibility for the Internal Financial Controls
The Companyâs 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 Companyâs 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.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs 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 âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Act, 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 ICAI. 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 auditorâs 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 Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A Companyâs 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 Companyâs 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 authorisations of management and directors of the Company; and
(3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Companyâs 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 March 31, 2018, 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 ICAI.
For Pathak H.D. & Associates
Chartered Accountants
Firm Registration No. D7783W
Ashutosh Jethlia
Place: Mumbai Partner
Dated: May 6, 2018 Membership No. B6GD7
Mar 31, 2017
To The Members of Crest Ventures Limited
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Crest Ventures Limited (âthe Companyâ), which comprises the Balance Sheet as at March 31, 2017, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and the 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 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 the 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 financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under. We conducted our audit in accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India, specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
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 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, 2017 and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the âAnnexure-Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
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 purpose of our audit;
b) In our opinion proper books of account as required by law have been kept by the Company so far as 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 standalone 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 March 31, 2017, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2017, from being appointed as a director in terms of Section 164 (2) of the Companies Act, 2013;
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 âAnnexure Bâ to this report;
g) With respect to the other matters to be included in the Auditorâs 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 financial statements -refer note 37 to the financial statements;
ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;
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 Company has provided requisite disclosures in the financial statements as regards its holding and dealings in Specified Bank Notes as defined in the Notification S.O.3407(E) dated November 8, 2016 of the Ministry of Finance, during the period from November 8, 2016 to December 30, 2016. Based on audit procedures performed and the representations provided to us by the Management, we report that the disclosures are in accordance with the books of account maintained by the Company and as produced to us by the Management.
Annexure âAâ to the Independent Auditorâs Report referred to in paragraph 1 under the heading of âReport on other legal and regulatory requirementsâ of our report of even date
i) In respect of its Fixed Assets :
a. The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets on the basis of available information.
b. As explained to us, all the fixed assets have been physically verified by the management in a phased periodical manner, which in our opinion is reasonable, having regard to the size of the Company and nature of its assets. No material discrepancies were noticed on such physical verification.
c. In our opinion and according to the information and explanations given to us, we report that, the title deeds of immovable property are held in the name of the Company.
ii) In respect of its inventories:
As explained to us, inventories consist of realty work in progress representing properties under construction. According to the information and explanations given to us, physical verification of inventories have been conducted at reasonable intervals by the management, which in our opinion is reasonable, having regard to the size of the Company and nature of its inventories. No material discrepancies were noticed on such physical verification.
iii) In respect of loans, secured or unsecured, granted by the Company to companies, firms, limited liability partnerships or other parties covered in the register maintained under Section 189 of the Act:
a. The terms and conditions of the grant of such loans are, in our opinion, prima facie, not prejudicial to the Companyâs interest.
b. The schedule of repayment of principal and payment of interest has not been stipulated, and are repayable on demand.
c. There are no overdue amounts as at the year-end, since repayable on demand.
iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 and Section 186 of the Act.
v) According to the information and explanations given to us, the Company has not accepted any deposits within the meaning of provisions of Sections 73 to 76 or any other relevant provisions of the Act and the rules framed thereunder. Therefore, the provisions of clause (v) of paragraph 3 of the Order are not applicable to the Company.
vi) To the best of our knowledge and explanations given to us, the Central Government has not prescribed the maintenance of cost records under sub section (1) of Section 148 of the Act in respect of the activities undertaken by the Company.
vii) In respect of Statutory dues :
a. According to the records of the Company, undisputed statutory dues including provident fund, income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess and any other statutory dues as applicable to it have been regularly deposited with appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at March 31, 2017 for a period of more than six months from the date of becoming payable.
b. On the basis of our examination of accounts and documents on records of the Company and information and explanations given to us upon enquires in this regard, there are no dues of income-tax, sales-tax, service tax, duty of customs, duty of excise, value added tax, cess as applicable to it on account of any dispute, which have not been deposited except the disputed statutory dues aggregating to ''795,226 on account of disputed matters pending before the appropriate authorities as under:
Sr. No. |
Name of the Statue |
Nature of Dues |
Amount in '' |
Assessment year to which the amount relates |
Forum where dispute is pending |
1 |
Income Tax Act, 1961 |
Income Tax |
182,233 |
2010-11 |
CIT(Appeal) |
2 |
Income Tax Act, 1961 |
Income Tax |
611,673 |
2011-12 |
CIT(Appeal) |
3 |
Income Tax Act, 1961 |
Income Tax |
1,320 |
2012-13 |
CIT(Appeal) |
viii) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to any financial institutions or bankers or government. The Company has not raised loans by issue of debentures.
ix) The money raised by term loans has been applied for the purpose for which they are raised. The Company has not raised money by way of initial public offer or further public offer (including debt instruments) during the year.
x) Based on the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
xi) In our opinion and according to the information and explanations given to us, managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
xii) In our opinion Company is not a nidhi Company. Therefore, the provisions of clause (xii) of paragraph 3 of the Order are not applicable to the Company.
xiii) In respect of transactions with related parties:
In our opinion and according to the information and explanations given to us, all transactions with related parties are in compliance with Sections 177 and 188 of the Act and their details have been disclosed in the financial statements etc., as required by the applicable accounting standards.
xiv) In our opinion and according to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year and hence clause (xiv) of paragraph 3 of the Order is not applicable to the Company.
xv) In our opinion and according to the information and explanations given to us, the Company has not entered into any non-cash transaction with the directors or persons connected with him and covered under Section 192 of the Act. Hence, clause (xv) of the paragraph 3 of the Order is not applicable to the Company.
xvi) Based on information and explanation given to us, the Company is required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934 and necessary registration has been obtained by the Company.
Annexure âBâ to the Independent Auditorâs Report referred to in paragraph 2(f) under the heading âReport on other legal and regulatory requirementsâ of our report of even date
Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the Internal Financial Controls over financial reporting of Crest Ventures Limited (âthe Companyâ) as of March 31, 2017 in conjunction with our audit of the standalone financial statements of the Company for the year then ended.
Managementâs Responsibility for the Internal Financial Controls
The Companyâs 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 Companyâs 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.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs 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 âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Act, 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 ICAI. 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 auditorâs 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 Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A Companyâs 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 Companyâs 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 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 Companyâs 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 March 31, 2017, based on the internal controls 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 ICAI.
For Chaturvedi & Shah
Chartered Accountants
Firm Registration No. 101720W
Amit Chaturvedi
Place: Mumbai Partner
Date: May 10, 2017 Membership No. 103141
Mar 31, 2016
Independent Auditorâs Report
To The Members of
Crest Ventures Limited
(Formerly known as Sharyans Resources Limited)
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Crest Ventures Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2016, the Statement of Profit and Loss and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.
Managementâs Responsibility for the Financial Statements
The Companyâs Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these standalone financial statements that give a true and fair view of the financial position, financial performance and the 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 maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of the 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 fair presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Companyâs preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
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 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 31st March, 2016, and its profit and its cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 (âthe Orderâ), issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act, we give in the âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
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 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 standalone 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, 2016 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2016, 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 âAnnexure Bâ.
g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rules 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 financial statements refer Note 36 to the financial statements;
ii. The Company did not have material foreseeable losses on long term contracts including derivative contracts that require provision under any law or accounting standards for which there were any material foreseeable losses;
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
âAnnexure Aâ to Independent Auditorâs Report referred to in Paragraph 1 under the heading of âReport on other legal and regulatory requirementsâ of our report of even date.
1) In respect of its fixed assets :
a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets on the basis of available information.
b) As explained to us, all the fixed assets have been physically verified by the management in a phased periodical manner, which in our opinion is reasonable, having regard to the size of the Company and nature of its assets. No material discrepancies were noticed on such physical verification.
c) In our opinion and according to the information and explanations given to us, we report that, the title deeds of immovable property are held in the name of the Company.
2) As explained to us, inventories consist of finished realty stock and realty work in progress representing unsold premises in completed projects and properties under construction. According to the information and explanations given to us, physical verification of inventories have been conducted at reasonable intervals by the management, which in our opinion is reasonable, having regard to the size of the Company and nature of its inventories. No material discrepancies were noticed on such physical verification.
3) In respect of loans, secured or unsecured, granted by the Company to companies, firms, limited liability partnerships or other parties covered in the register maintained under Section 189 of the Act:
a) The terms and conditions of the grant of such loans are, in our opinion, prima facie, not prejudicial to the Companyâs interest.
b) The schedule of repayment of principal and payment of interest has not been stipulated, and are repayable on demand.
c) There are no overdue amounts as at the year-end, since repayable on demand.
4) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of Section 185 of the Act. As explained to us, Company being a Non-Banking Finance Company, the provisions of Section 186 of the Act are not applicable.
5) According to the information and explanations given to us, the Company has not accepted any deposits within the meaning of provisions of Sections 73 to 76 or any other relevant provisions of the Act and the Rules framed there under. Therefore, the clause (v) of paragraph 3 of the Order is not applicable to the Company.
6) To the best of our knowledge and explanations given to us, the Central Government has not prescribed the maintenance of cost records under sub section (1) of Section 148 of the Act in respect of the activities undertaken by the Company.
7) In respect of Statutory dues :
a) According to the records of the Company, undisputed statutory dues including provident fund, employeesâ state insurance, income tax, sales tax, service tax, duty of customs, excise duty, value added tax, cess and any other statutory dues as applicable have been regularly deposited with appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues, were outstanding as at 31st March, 2016 for a period of more than six months from the date they became payable.
b) According to the information and explanations given to us, there are no dues of income tax, sales tax, service tax, duty of customs, excise duty, value added tax and cess as applicable on account of any dispute, which have not been deposited except the disputed statutory dues aggregating to ''1,406,372 on account of disputed matters pending before appropriate authorities are as under:
Sr. No. |
Name of the Statute |
Nature of Dues |
Amount in Rs, |
Assessment year to which the amount relates |
Forum where dispute is pending |
1 |
Income Tax Act, 1961 |
Income Tax |
182,233 |
2010-11 |
CIT(Appeal) |
2 |
Income Tax Act, 1961 |
Income Tax |
611,673 |
2011-12 |
CIT(Appeal) |
3 |
Income Tax Act, 1961 |
Income Tax |
612,466 |
2012-13 |
ITAT |
8) In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to its financial institutions or bankers or government. The Company has not raised loans by issue of debentures.
9) The money raised by term loans has been applied for the purpose for which they are raised. The Company has not raised money by way of initial public offer or further public offer (including debt instruments) during the year.
10) Based on the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per information and explanations given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the year.
11) In our opinion and according to the information and explanations given to us, managerial remuneration has been paid or provided in accordance with the requisite approvals mandated by the provisions of Section 197 read with Schedule V to the Act.
12) In our opinion Company is not a nidhi Company. Therefore, the provisions of clause (xii) of paragraph 3 of the Order are not applicable to the Company.
13) In our opinion and according to the information and explanations given to us, all transactions with related parties are in compliance with Sections 177 and 188 of the Act and their details have been disclosed in the financial statements etc., as required by the applicable accounting standards.
14) In our opinion and according to the information and explanations given to us, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year and hence clause (xiv) of paragraph 3 of the Order is not applicable to the Company.
15) In our opinion and according to the information and explanations given to us, the Company has not entered into any non-cash transaction with the directors or persons connected with him and covered under Section 192 of the Act. Hence, clause (xv) of the paragraph 3 of the Order is not applicable to the Company.
16) Based on information and explanation given to us, the Company is required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934 and necessary registration has been obtained by the Company.
âAnnexure Bâ to Independent Auditorâs Report referred to in paragraph 2(f) under the heading âReport on other legal and regulatory requirementsâ of our report of even date.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the Internal Financial Controls over financial reporting of Crest Ventures Limited (âthe Companyâ) as of 31st March, 2016 in conjunction with our audit of the standalone financial statements of the Company for the year then ended. Management Responsibility for the Internal Financial Controls
The Companyâs 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 Companyâs 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.
Auditorâs Responsibility
Our responsibility is to express an opinion on the Companyâs 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 âGuidance Noteâ) and the Standards on Auditing, issued by ICAI and deemed to be prescribed under Section 143(10) of the Act, 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 ICAI. 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 auditorâs 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 Companyâs internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A Companyâs 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 Companyâs 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 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 Companyâs 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, 2016, 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 ICAI.
For Chaturvedi & Shah
Chartered Accountants
Firm Registration No. 101720W
Amit Chaturvedi
Place : Mumbai Partner
Date : May 14, 2016 Membership N°. 103M1
Mar 31, 2015
We have audited the accompanying financial statements of Crest Ventures
Limited ("the Company"), which comprise the Balance Sheet as at
31st March, 2015, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the 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 of these standalone 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 maintenance of adequate accounting records in accordance
with the provision of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of the appropriate accounting
policies; making judgements 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 fair presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgement, including the assessment
of the risks of material misstatement of the financial statements,
whether due to fraud or error. In making those risk assessments, the
auditor considers internal financial controls relevant to the
Company's preparation of the financial statements that give a true
and fair view in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion
on whether the Company has in place an adequate internal financial
controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the standalone
financial statements.
Opinion
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 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 31st March, 2015, and its profit and its cash flows for the year
ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015
("the Order") issued by the Central Government of India in terms of
Section 143 of the Act (18 of 2013), we give in the Annexure a
statement on the matters specified in paragraph 3 and 4 of the Order.
2. As required under provisions of 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 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, 2015 taken on record by the Board of Directors, none
of the directors is disqualified as on 31st March, 2015, from being
appointed as a director in terms of Section 164(2) of the Act;
f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rules 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 financial statements - Refer Note 36(b) to
the financial statements;
ii) The Company did not have any long term contracts including
derivative contracts that require provision under any law or accounting
standards for which there were any material foreseeable losses;
iii) There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company.
Annexure referred to in paragraph I under the heading Report on Other
Legal and Regulatory Requirements of our report of even date
i) In respect of its Fixed Assets :
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b) As explained to us, all the fixed assets have been physically
verified by the management in a phased periodical manner, which in our
opinion is reasonable, having regard to the size of the Company and
nature of its assets. No material discrepancies were noticed on such
physical verification.
ii) In respect of its Inventories:
a) As explained to us inventories consist of finished realty stock and
realty work in progress representing unsold premises in completed
projects and properties under construction. According to the
information and explanations given to us, the inventories have been
physically verified during the year by the management at reasonable
intervals.
b) As per the information and explanation given to us, the procedures
of physical verification of inventories followed by the management are
reasonable and adequate in relation to the size of the Company and the
nature of its business.
c) The Company has maintained proper records of inventory and
discrepancies noticed on verification between physical stocks and books
are not material, having regard to the size of the operations of the
Company.
iii) In respect of the loans secured or unsecured, granted or taken by
the Company to/from companies, firms or other parties covered in the
register maintained under Section 189 of the Act:
a) The repayment of principal amounts and interest are regular.
b) There are no overdue amounts.
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and nature of its business for the
purchases of fixed assets and for the sale of services. During the
course of our audit, we have not observed any continuing failure to
correct major weaknesses in such internal control system.
v) According to the information and explanations given to us, the
Company has not accepted any deposits within the meaning of provisions
of Section 73 to 76 or any other relevant provisions of the Act and
rules framed hereunder. Therefore, provisions of Clause (v) of
paragraph 3 of the Order are not applicable to the Company.
vi) To the best of our knowledge and as explained, the Central
Government has not prescribed the maintenance of cost records under sub
section (1) of Section 148 of the Act.
vii) In respect of Statutory dues:
a) According to the records of the Company, undisputed statutory dues
including Provident Fund, Income-Tax, Sales-Tax, Service Tax, Duty of
Customs, Value Added Tax, Cess and any other statutory dues have been
regularly deposited with appropriate authorities. According to the
information and explanations given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at 31st March,
2015 for a period of more than six months from the date of becoming
payable.
b) According to the information and explanations given to us, there are
no dues of Income Tax, Sales Tax, Wealth Tax, Service Tax, Duty of
Customs, Duty of Excise, Value added tax, Cess on account of any
dispute, which have not been deposited except the disputed statutory
dues aggregating Rs.612,466 on account of disputed matters pending before
appropriate authorities are as under:
Sr. Nature of the Assessment Year
to which the Forum where
dispute is
Name of the
Statute Amount
(in Rs.)
No. Dues amount relates pending
1 Income Tax Act,
1961 Income Tax 612,466 2012-13 CIT (Appeal)
c) According to the records of the Company, there has been no delay in
transferring amounts that are due to be transferred to the Investor
Education and Protection Fund in accordance with the relevant
provisions of the Companies Act, 1956 (1 of 1956) and rules made
thereunder which are required to be transferred to the Investor
Education and Protection Fund by the Company.
viii) The Company does not have any accumulated losses at the end of
the financial year. The Company has not incurred any cash losses during
the financial year covered by audit and in the immediate preceding
financial year.
ix) According to the records examined by us and the information and
explanation given to us, we are of the opinion that the Company has not
defaulted in re-payment of dues to financial institution and banks.
x) According to information and explanation given to us the Company has
given guarantee for loans taken by its subsidiary, terms and conditions
whereof in our opinion are not prima facie prejudicial to the interest
of the Company.
xi) The term loans were applied for the purpose for which the loans
were obtained.
xii) In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year.
For Chaturvedi & Shah
Chartered Accountants
(Firm Registration No. 101720W)
Jignesh Mehta
Place: Mumbai Partner
Date : May 05, 2015 Membership No. 102749
Mar 31, 2014
We have audited the accompanying financial statements of Sharyans
Resources Limited ("the Company"), which comprise the Balance Sheet as
at 31st March, 2014, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s responsibility for the Financial Statements
Management is responsible for the preparation 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 Standards notified under the Companies Act, 1956 ("the
Act") read with the General Circular 15/2013 dated 13 th September,
2013 of the Ministry of Corporate Affairs in respect of Section 133 of
the Companies Act, 2013. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and fair presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether
due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgement, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements 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 entity''s
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
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 the manner so required, and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(i) in the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2014;
(ii) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
(iii) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on other legal and regulatory requirements
1. As required by the Companies (Auditor''s Report) Order 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of Section 227 of the Act, we give in the Annexure, a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by sub-section (3) of Section 227 of the Act, we report
that:
a. we have 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 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 Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement comply with the Accounting Standards
notified under the Companies Act, 1956 read with the General Circular
15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs
in respect of Section 133 of the Companies Act, 2013;
e. on the basis of the written representations received from the
directors and taken on record by the Board of Directors, none of the
directors are disqualified as on 31st March, 2014, from being appointed
as a director in terms of clause (g) of sub-section (1) of Section 274
of the Act.
Annexure referred to in paragraph 1 under the heading of Report on
Other Legal and Regulatory Requirements of our report of even date Re:
Sharyans Resources Limited ("the Company")
1. In respect of its Fixed Assets:
a) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b) Fixed assets have been physically verified by the management in a
phased periodical manner as per regular programme of verification,
which in our opinion is reasonable, having regard to the size of the
Company and nature of its assets. No material discrepancies were
noticed on such physical verification.
c) There are no substantial disposals of fixed assets during the year.
2. In respect of its Inventory:
a) Inventories consist of finished realty stock and realty work in
progress representing unsold premises in completed projects and
properties under construction. According to the information and
explanations given to us, the inventories have been physically verified
during the year by the management. In our opinion, the frequency of
verification is reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the Company and the nature of its business.
c) The Company has maintained proper records of inventory. As explained
to us, there was no material discrepancies noticed on physical
verification of inventories.
3. In respect of the loans, secured or unsecured, granted or taken by
the Company to / from companies, firms or other parties covered in the
register maintained under Section 301 of the Act:
a) The Company has given loan to its two wholly owned subsidiaries
covered in register maintained under Section 301 of the Companies Act,
1956. In respect of said loans, the maximum amount outstanding at any
time during the year is Rs. 305,300,000 and the year-end balance is Rs.
195,800,000.
b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of the
loans given by the Company, are not prima facie prejudicial to the
interest of the Company.
c) In respect of loan given by the Company, the repayment of principal
amounts and interest are regular.
d) In respect of the said loans and interest thereon, there are no
overdue amounts.
e) The Company has taken loan from six companies/parties covered in
register maintained under Section 301 of the Companies Act, 1956. In
respect of said loans, the maximum amount outstanding at any time
during the year is Rs. 864,700,000 and the year-end balance is Rs.
140,650,000.
f) In our opinion and according to the information and explanation
given to us, the rate of interest and other terms and conditions of the
loan taken by the Company are not prima facie prejudicial to the
interest of the Company.
g) The principal amounts and interest are repayable on demand.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchase of inventory, fixed assets, for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weaknesses in internal control
system.
5. According to information and explanation given to us, there are no
contracts or arrangements referred to in Section 301 of the Act that
need to be entered into the register maintained under Section 301.
Therefore, the provisions of clause (v) (b) of paragraph of the Order
are not applicable to the Company.
6. The Company has not accepted any deposit from the public.
7. In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8. To the best of our knowledge and as explained, the Central
Government has not prescribed the maintenance of cost records under
clause Section 209(1)(d) of the Act.
9. In respect of statutory dues:
a) According to the records of the Company, undisputed statutory dues
including Provident Fund, Investor Education and Protection Fund,
Employees'' State Insurance, Income-Tax, Sales Tax, Wealth Tax, Service
Tax, Customs Duty, Excise Duty, Cess and other statutory dues have been
generally regularly deposited with the appropriate authorities.
According to the information and explanations given to us, no
undisputed amounts payable in respect of the aforesaid dues were
outstanding as at 31st March, 2014 for a period of more than six months
from the date of becoming payable.
b) The disputed statutory dues aggregating Rs. 1,659,256 that have not
been deposited on account of disputed matters pending before
appropriate authorities are as under:
Sr. Name of the Statute Nature of the Amount in Rs.
No. Dues
1 Income Tax Act, 1961 Income Tax 128,762
2 Income Tax Act, 1961 Income Tax 30,559
3 Income Tax Act, 1961 Income Tax 1,499,935
Total 1,659,256
Sr. Name of the Statute Assessment year to Forum where dispute
No. which the amount is pending
relates
1 Income Tax Act, 1961 2007-08 CIT (Appeal)
2 Income Tax Act, 1961 2008-09 ITAT (Appeal)
3 Income Tax Act, 1961 2010-11 CIT (Appeal)
10. The Company does not have any accumulated losses at the end of the
financial year. The Company has not incurred any cash losses during the
financial year covered by audit and in the immediate preceding
financial year.
11. Based on our audit procedures and as per the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to banks. The Company has not
borrowed any loans from financial institution or from debenture holders
during the year under audit.
12. According to the information and explanations given to us and
based on the documents and records produced to us, the Company has not
granted loans and advances on the basis of security by way of pledge of
shares, debentures and other securities.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/ society. Therefore, the provisions of clause (xiii) of
paragraph 4 of the Order are not applicable to the Company.
14. The Company has maintained proper records of transactions and
contracts in respect of dealing and trading in shares, securities,
debentures and other investments and timely entries have been made
therein. All the shares, securities, debentures and other investments
have been held by the Company in its own name.
15. According to information and explanation given to us the Company
has given guarantee for loans taken by its subsidiary, terms and
conditions whereof in our opinion are not prima facie prejudicial to
the interest of the Company.
16. The term loans were applied for the purpose for which the loans
were obtained.
17. 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 short-term basis have been used for long-term
investment.
18. The Company has not made any preferential allotment of shares to
parties and companies covered under Register maintained under Section
301 of the Act.
19. The Company did not have any outstanding debenture during the
year.
20. The Company has not raised any monies by way of public issue
during the year.
21. Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we report
that no material fraud on or by the Company has been noticed or
reported during the year.
For Chaturvedi & Shah
Chartered Accountants
(Firm Registration No. 101720W)
Jignesh Mehta
Place: Mumbai Partner
Date: May 27, 2014 Membership No. 102749
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Sharyans
Resources Limited ("the Company"), which comprise the Balance Sheet as
at 31st March, 2013, the Statement of Profit and Loss and the Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation 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 standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and fair presentation of the financial statements
that give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgement, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2013 ;
b) In the case of the Statement of Profit and Loss, of the Profit of
the Company for the year ended on that date; and
c) In the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date. Report on Other Legal and Regulatory
Requirements
a) As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of sub-
section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
b) As required under provisions of section 227(3) of the Companies Act,
1956, we report that:
i) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
ii) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books;
iii) 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;
iv) in our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement comply with the accounting standards
referred to in subsection (3C) of section 211 of the Act;
v) on the basis of written representations received from the directors
as on 31st March, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2013, from
being appointed as a director in terms of clause (g) of sub-section (1)
of section 274 of the Act.
Annexure referred to in paragraph "a" under the heading Report on other
legal and regulatory requirements of our Report of even date
{Re: Sharyans Resources Limited ("the Company")}
1) In respect of its Fixed Assets: -
a) The Company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets on the
basis of available information.
b) As explained to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner, which
in our opinion is reasonable, having regard to the size of the Company
and nature of its assets. No material discrepancies were noticed on
such verification.
c) In our opinion, the Company has not disposed of substantial part of
its fixed assets during the year and the going concern status of the
Company is not affected.
2) In respect of its inventories of construction materials:
a) As explained to us, the inventories have been physically verified by
the management at regular intervals. In our opinion, the frequency of
the physical verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company has maintained proper records of inventories. As
explained to us, thete was no material discrepancies noticed on
physical verification of inventories as compared to the book records.
3) In respect of the loans, secured or unsecured, granted or taken by
the Company to / from companies, firms or othet parties covered in the
register maintained under Section 301 of the Companies Act, 1956:
a) The Company has given loans to two companies covered in the register
maintained under Section 301 of the Companies Act, 1956. In respect of
the said loans, the maximum amount outstanding at any time during the
year was Rs. 234,825,000 and the year-end balance is Rs. 215,300,000.
b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of the
loans given by the Company, are not prima facie prejudicial to the
interest of the Company.
c) As per the explanation given to us, the said loans are repayable as
per the terms agreed therefore question of ovetdue amounts does not
arise.
d) The Company has taken loans from five companies/party covered in the
register maintained under Section 301 of the Companies Act, 1956. In
respect of the said loans, the maximum amount outstanding at any time
during the year was Rs. 182,750,000 and the yeat-end balance
isRs.52,800,000.
e) In our opinion and according to the information and explanation
given to us, the terms and conditions of such loans taken are not prima
facie prejudicial to the interest of the Company.
f) As per the explanation given to us, the amount of the said loans is
repayable on demand and there is no repayment schedule, therefore, the
question of overdue amounts does not arise.
4) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventories, fixed assets and for sale of
services. We have neither come across nor have been informed of any
continuing failure to correct major weaknesses in the aforesaid
internal control procedures.
5) In respect of the contracts or arrangements referred to in Section
301 of the Companies Act, 1956:
a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements that need to be enteted in the register maintained under
Section 301 of the Companies Act, 1956 have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts /
arrangements entered in the registet maintained undet Section 301 of
the Companies Act, 1956 with each party during the year have been made
at prices which appear reasonable as per information available with the
Company.
6) According to the information and explanations given to us, the
Company has not accepted any deposits from the public, therefore the
provisions of Clause (vi) of paragraph 4 of the Order are not
applicable.
7) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
8) In respect of Statutory dues: -
a) According to the information and explanations given and records
produced and examined by us, the Company is regular in depositing with
appropriate authorities undisputed statutory dues in respect of
Investor Education Protection Fund, Income Tax, Service Tax, and Other
material statutory dues as applicable during the year.
b) The Provident Fund, Employee State Insurance Fund, Wealth tax,
Custom duty, Excise duty and Cess are not applicable to the Company.
c) According to the information and explanations given to us, no
undisputed amounts payable in respect of Investor Education Protection
Fund, Income Tax, Service Tax, and Other material statutory dues were
in arrears as at 31st March, 2013 for a period of more than six months
from the date they became payable.
d) The disputed statutory dues amounting to Rs. 1,132,462 have not been
deposited on account of disputed matters pending before Commissioner of
Income Tax in respect of Assessment Year 2010-11.
9) The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
financial year covered by the audit and in the immediately preceding
financial year.
10) Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to banks.
11) In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
12) In our opinion and according to the information and explanation
given to us, the Company has maintained proper records of transaction
and contracts in respect of dealing and trading in shares, securities
and other investments and timely entries have been made therein. All
the shares securities and other investments have been held by the
Company in its own name.
13) According to the information and explanations given to us, the
Company has given guarantee for loans taken by its subsidiaries, terms
and conditions whereof in our opinion are not prima-facie prejudicial
to the interest of the Company.
14) According to information and explanation given to us the Company
has raised new terms loans during the year. The term loans which are
raised during the year have been applied for the purposes for which
they were raised.
15) 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 short-term basis have been used for long-term
investment.
16) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares, during the
year, to parties and companies covered in the register maintained under
Section 301 of the Companies Act, 1956.
17) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we have not
come across any instance of material fraud on or by the Company noticed
or reported during the year.
18) In view of the nature of the activities carried by the Company,
Clause (xiii) of paragraph 4 of the Order is not applicable to the
Company. Further in view of the absence of conditions prerequisite to
the reporting requirements of clauses (viii), (xix), and (xx) of
paragraph 4 of the Order are not applicable.
For Chaturvedi & Shah
Chartered Accountants
(Firm Registration No. 101720W)
Jignesh Mehta
Place: Mumbai Partner
Date: May 06, 2013 Membership No. 102749
Mar 31, 2012
We have audited the attached Balance Sheet of SHARYANS RESOURCES
LIMITED (the 'Company') as at 31st March, 2012, the Statement of
Profit and Loss and also the Cash Flow Statement for the year ended on
that date annexed thereto. These financial statements are the
responsibility of the Company's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
2. As required by the Companies (Auditors' Report) Order, 2003
issued by the Central Government of India in terms of Section 227(4A)
of the Companies Act, 1956, we enclose in the Annexure a statement on
the matters specified in paragraphs 4 and 5 of the said Order, to the
extent applicable to the Company.
3. Further to our comments in the annexure referred to in paragraph 2
above we report that:
a) We have 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, the company has kept proper books of account as
required by law so far as 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 Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement dealt by this report are in compliance with
the mandatory Accounting Standards referred to in Section 211(3C) of
the Companies Act, 1956.
e) On the basis of written representation received from the directors
as on 31st March, 2012 and taken on record by the Board of Directors,
we report that none of the directors are disqualified as on 31st March,
2012 from being appointed as directors in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
significant accounting policies and other notes thereon give the
information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:-
i) In the case of the Balance Sheet, of the State of Affairs of the
Company as at 31st March, 2012;
ii) In the case of the Statement of Profit and Loss, of the Profit of
the Company for the year ended on that date; and
iii) In the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date. annexure to auditors' report
(Referred to in Paragraph 2 of our report of even date)
1) In respect of its Fixed Assets: -
a) The company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets on the
basis of available information.
b) As explained to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner, which
in our opinion is reasonable, having regard to the size of the Company
and nature of its assets. No material discrepancies were noticed on
such verification.
c) In our opinion, the Company has not disposed of substantial part of
its fixed assets during the year and the going concern status of the
Company is not affected.
2) In respect of its inventories of construction materials:
a) As explained to us, the inventory has been physically verified by
the management at regular intervals. In our opinion, the frequency of
the physical verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company has maintained proper records of inventory. As explained
to us, there was no material discrepancies noticed on physical
verification of inventory as compared to the book records.
3) In respect of the loans, secured or unsecured, granted or taken by
the Company to / from companies, firms or other parties covered in the
register maintained under Section 301 of the Companies Act, 1956:
a) The Company has given interest free loans to two subsidiaries. In
respect of the said loans, the maximum amount outstanding at any time
during the year was Rs. 411,850,000 and the year-end balance is Rs.
221,825,000.
b) In our opinion and according to the information and explanations
given to us, the rate of interest and other terms and conditions of the
loans given by the Company, are not prima facie prejudicial to the
interest of the Company.
c) As per the explanation given to us, the said loans are repayable as
per the terms agreed and have not become due during the year.
d) Since the said loans have not become due during the year, the
question of overdue amounts does not arise.
e) The Company has taken loan from one party covered in the register
maintained under Section 301 of the Companies Act, 1956. In respect of
the said loans, the maximum amount outstanding at any time during the
year was Rs. 65,000,000 and the year-end balance is Rs. 62,000,000.
f) In our opinion and according to the information and explanation
given to us, the terms and conditions of such loans taken are not prima
facie prejudicial to the interest of the Company.
g) As per the explanation given to us, the amount of the said loans is
repayable on demand and there is no repayment schedule, therefore, the
question of overdue amounts does not arise.
4) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of inventory and fixed assets and for sale of
services. We have neither come across nor have been informed of any
continuing failure to correct major weaknesses in the aforesaid
internal control procedures.
5) In respect of contracts or arrangements referred to in section 301
of the Companies Act, 1956, there were no transactions which needed to
be entered in the register maintained under section 301 of the
Companies Act 1956. Therefore clause (v) (a) & (b) of paragraph 4 of
the order are not applicable.
6) According to the information and explanations given to us, the
Company has not accepted any deposits from the public. Therefore the
provisions of Clause (vi) of paragraph 4 of the Order are not
applicable.
7) According to the information and explanations given to us the
Company has an in house internal audit department to review the
financials of the Company. The Management of the Company is of the view
that the system commensurate with its size and nature of its business.
8) In respect of Statutory dues: -
a) According to the information and explanations given and records
produced and examined by us, the Company is regular in depositing with
appropriate authorities undisputed statutory dues in respect of
Investor Education Protection Fund, Income Tax, Service Tax, and Other
material statutory dues as applicable during the year.
b) The Provident Fund, Employee State Insurance Fund, Wealth tax,
Custom duty, Excise duty and Cess are not applicable to the Company.
c) According to the information and explanations given to us, no
undisputed amounts payable in respect of Investor Education Protection
Fund, Income Tax, Service Tax, and other material statutory dues were
in arrears as at 31.03.2012 for a period of more than six months from
the date they became payable.
d) The disputed statutory dues amounting to Rs. 103,850 have not been
deposited on account of disputed matters pending before Commissioner of
Income Tax in respect of Assessment Year 2009-10.
9) The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
financial year covered by the audit and in the immediately preceding
financial year.
10) Based on our audit procedures and according to the information and
explanations given to us, we are of the opinion that the Company has
not defaulted in repayment of dues to banks.
11) In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
12) In our opinion and according to the information and explanation
given to us, the Company has maintained proper records of transaction
and contracts in respect of dealing and trading in shares, securities
and other investments and timely entries have been made therein. All
the shares securities and other investments have been held by the
Company in its own.
13) According to the information and explanations given to us, the
Company has given guarantee for loans taken by its subsidiary, terms
and conditions whereof in our opinion are not prima-facie prejudicial
to the interest of the Company.
14) According to information and explanation given to us the Company
has raised new terms loans during the year. The term loans which are
raised during the year have been applied for the purposes for which
they were raised.
15) 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 short-term basis have been used for long-term
investment.
16) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares, during the
year, to parties and companies covered in the register maintained under
section 301 of the Companies Act, 1956.
17) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we have not
come across any instance of material fraud on or by the company noticed
or reported during the year.
18) In view of the nature of the activities carried by the Company,
Clause (xiii) of paragraph 4 of the Order is not applicable to the
Company. Further in view of the absence of conditions prerequisite to
the reporting requirements of clauses (viii), (xix), and (xx) of
paragraph 4 of the Order are not applicable.
For Chaturvedi & Shah
(Firm Registration No. 101720W)
Chartered Accountants
Jignesh Mehta
Place: Mumbai Partner
Date : May 30, 2012 Membership No. 102749
Mar 31, 2011
We have audited the attached Balance Sheet of SHARYANS RESOURCES
LIMITED (the ÃCompanyÃ) as at 31st March, 2011, the Profit and Loss
account and also the Cash Flow Statement for the year ended on that
date annexed thereto. These financial statements are the responsibility
of the CompanyÃs management. Our responsibility is to express an
opinion on these financial statements based on our audit.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
2. As required by the Companies (Auditorsà Report) Order, 2003 issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order, to the
extent applicable to the Company.
3. Further to our comments in the annexure referred to in paragraph 2
above we report that:
(a) We have 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, the company has kept proper books of account as
required by law so far as appears from our examination of those books.
(c) The Balance Sheet, the Profit and Loss account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
(d) In our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt by this report are in compliance with the
mandatory Accounting Standards referred to in Section 211(3C) of the
Companies Act, 1956.
(e) On the basis of written representation received from the directors
as on 31st March, 2011 and taken on record by the Board of Directors,
we report that none of the directors are disqualified as on 31st March,
2011 from being appointed as directors in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
significant accounting policies and other notes thereon give the
information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India:-
i) In the case of the Balance Sheet, of the State of Affairs of the
Company as at 31st March, 2011 ;
ii) In the case of the Profit and Loss account, of the Profit of the
Company for the year ended on that date; and
iii) In the case of the Cash Flow Statement, of the Cash Flows for the
year ended on that date.
Annexure to auditorsà report
(Referred to in Paragraph 2 of our report of even date)
1) In respect of its Fixed Assets: -
a) The company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets on the
basis of available information.
b) As explained to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner, which
in our opinion is reasonable, having regard to the size of the Company
and nature of its assets. No material discrepancies were noticed on
such verification.
c) In our opinion, the Company has not disposed of substantial part of
fixed assets during the year and the going concern status of the
Company is not affected.
2) In respect of its inventories of construction materials:
a) As explained to us, the inventory has been physically verified by
the management at regular intervals. In our opinion, the frequency of
the physical verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company has maintained proper records of inventory. As explained
to us, there was no material discrepancies noticed on physical
verification of inventory as compared to the book records.
3) According to the information and explanations given to us, the
Company has neither granted nor taken any loan secured or unsecured
to/from companies, firm or other parties covered in the register
maintained under section 301 of the Companies Act, 1956. Consequently,
the requirements of Clauses (iii) of paragraph 4 of the Order are not
applicable.
4) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of fixed assets and sale of services. We
have neither come across nor have been informed of any continuing
failure to correct major weaknesses in the aforesaid internal control
procedures.
5) In respect of transactions covered under section 301 of the
Companies Act, 1956:
a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed to be entered in the register maintained
under section 301 of the Companies Act, 1956 have been so entered.
b) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of contracts /
arrangements entered in the Register maintained under section 301 of
the Companies Act, 1956, in respect of each party during the year have
been made at prices which appear reasonable as per information
available with the Company.
6) According to the information and explanations given to us, the
Company has not accepted any deposits from the public. Therefore the
provisions of Clause (vi) of paragraph 4 of the Order are not
applicable.
7) According to the information and explanations given to us the
Company has an in house internal audit department to review the
financials of the Company. The Management of the Company is of the view
that the system commensurate with its size and nature of its business.
8) In respect of Statutory dues: -
a) According to the information and explanations given and records
produced and examined by us, the Company is regular in depositing with
appropriate authorities undisputed statutory dues in respect of
Investor Education Protection Fund, Income Tax, Service Tax, and Other
material statutory dues as applicable during the year.
b) The Provident Fund, Employee State Insurance Fund, Wealth tax,
custom duty, excise duty and Cess are not applicable to the Company.
c) According to the information and explanations given to us, no
undisputed amounts payable in respect of Investor Education Protection
Fund, Income Tax, Service Tax, and other material statutory dues were
in arrears as at 31.03.2011 for a period of more than six months from
the date they became payable.
d) There are no disputed statutory dues that have not been deposited on
account of disputed matters pending before appropriate authorities.
9) The Company does not have accumulated losses at the end of the
financial year. The Company has not incurred cash losses during the
financial year covered by the audit and in the immediately preceding
financial year.
10) The Company has not taken any borrowings from financial
institutions, banks or debenture holders and therefore provisions of
clause (xi) paragraph 4 of the Order are not applicable.
11) In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
12) In our opinion and according to the information and explanation
given to us, the Company has maintained proper records of transaction
and contracts in respect of dealing and trading in shares, securities
and other investments and timely entries have been made therein .All
the shares securities and other investments have been held by the
Company in its own name.
13) According to the information and explanations given to us, the
Company has given guarantee for loans taken by its subsidiary and
associate companies, terms and conditions whereof in our opinion are
not prima-facie prejudicial to the interest of the Company.
14) According to information and explanation given to us the Company
has raised new terms loans during the year. The term loans which are
raised during the year, have been applied for the purposes for which
they were raised.
15) 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 short-term basis have been used for long-term
investment.
16) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares, during the
year, to parties and companies covered in the register maintained under
section 301 of the Companies Act, 1956.
17) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we have not
come across any instance of material fraud on or by the company noticed
or reported during the year.
18) In view of the nature of the activities carried by the Company,
Clause (xiii) of paragraph 4 of the Order is not applicable to the
Company. Further in view of the absence of conditions prerequisite to
the reporting requirements of clauses (viii), (xix), and (xx) of
paragraph 4 of the Order are not applicable.
For Chaturvedi & Shah
(Firm Registration No. 101720W)
Chartered Accountants
Amit Chaturvedi
Partner
Membership No: 103141
Place: Mumbai
Date : May 30, 2011
Mar 31, 2010
We have audited the attached Balance Sheet of SHARYANS RESOURCES
LIMITED (the Company) as at 31st March, 2010, the Profit and Loss
account and also the Cash Flow Statement for the year ended on that
date annexed thereto. These financial statements are the responsibility
of the Companys management. Our responsibility is to express an
opinion on these financial statements based on our audit.
1. We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
2. As required by the Companies (Auditors Report) Order, 2003 issued
by the Central Government of India in terms of Section 227(4A) of the
Companies Act, 1956, we enclose in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the said Order, to the
extent applicable to the Company.
3. Further to our comments in the annexure referred to in paragraph 2
above we report that:
(a) We have 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, the company has kept proper books of account as
required by law so far as appears from our examination of those books.
(c) The Balance Sheet, the Profit and Loss account and the Cash Flow
Statement dealt with by this report are in agreement with the books of
account.
(d) In our opinion, the Balance Sheet, the Profit and Loss Account and
the Cash Flow Statement dealt by this report are in compliance with the
mandatory Accounting Standards referred to in Section 211(3C) of the
Companies Act, 1956.
(e) On the basis of written representation received from the directors
as on 31st March 2010 and taken on record by the Board of Directors, we
report that none of the directors are disqualified as on 31st March
2010 from being appointed as directors in terms of clause (g) of
sub-section (1) of Section 274 of the Companies Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with the
significant accounting policies and other notes thereon give the
information required by the Companies Act, 1956, in the manner so
required and give a true and fair view in conformity with the
accounting principles generally accepted in India: -
i) In the case of the Balance Sheet, of the state of affairs of the
Company as at 31st March, 2010 ;
ii) In the case of the Profit and Loss account, of the profit of the
Company for the year ended on that date; and
iii) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date. annexure to auditors report (Referred to in
Paragraph 2 of our report of even aate)
1) In respect of its Fixed Assets: -
a) The company has maintained proper records showing full particulars
including quantitative details and situation of its fixed assets on the
basis of available information.
b) As explained to us, the fixed assets have been physically verified
by the Management during the year in a phased periodical manner, which
in our opinion is reasonable, having regard to the size of the Company
and nature of its assets. No material discrepancies were noticed on
such verification.
c) In our opinion, the Company has not disposed of substantial part of
fixed assets during the year and the going concern status of the
Company is not affected.
2) In respect of its inventories of construction materials:
a) As explained to us, the inventory has been physically verified by
the management at regular intervals. In our opinion, the frequency of
the physical verification is reasonable.
b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c) The Company has maintained proper records of inventory. As explained
to us, there was no material discrepancies noticed on physical
verification of inventory as compared to the book records.
3) In respect of loans, secured or unsecured, granted or taken by the
company to/from companies, firms or parties covered in the register
maintained under section 301 of the Companies Act, 1956: -
a) The Company has granted unsecured loan repayable on demand to one
party covered in the register maintained under section 301 of the
Companies Act, 1956 aggregating to Rs.43,520,000/-. The maximum amount
outstanding at any time during the year was Rs. 27,240,000/- and year
end balance of loan granted to such party was NIL.
b) According to the information and explanations given to us, the rate
of interest and terms and conditions of such loan are not prima facie
prejudicial to the interest of the Company.
c) The loans granted are repayable on demand, accordingly the
provisions of Clauses 4(iii) (c) and (d) of the Companies (Auditors
Report) Order, 2003 are not applicable.
d) According to the information and explanations given to us, the
Company has not taken any loan, secured or unsecured to companies, firm
or other parties listed in the register maintained under section 301 of
the Companies Act, 1956. Therefore, sub-clause (f) and (g) are not
applicable.
4) In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business for the purchase of fixed assets. We have neither come across
nor have been informed of any continuing failure to correct major
weaknesses in the aforesaid internal control procedures.
5) In respect of transactions covered under section 301 of the
Companies Act, 1956:
a) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements, that needed to be entered in the register maintained
undet section 301 of the Companies Act, 1956 have been so entered.
b) In our opinion and according to the information and explanation
given to us, the transactions made in pursuance of such contract or
arrangements are unique and of specialized nature and in absence of any
comparable prices, we are unable to comment if same have been made at
prices which are reasonable having regard to the prevailing market
prices at the relevant time.
6) According to the Information and Explanation given to us, the
Company has not accepted any deposits from the public. Therefore the
provisions of Clause (vi) of the Companies (Auditors report) Order,
2003 are not applicable to the Company.
7) According to the information and explanations given to us the
Company has an in house internal audit department to review the
financials of the Company. The Management of the Company is of the view
that the system commensurate with its size and nature of its business.
8) In respect of Statutory dues: -
a) According to the information and explanations given and records
produced and examined by us, the Company is regular in depositing with
appropriate authorities undisputed statutory dues in respect of
Investor Education Protection Fund, Income Tax, Service Tax, and Other
material statutory dues as applicable during the year.
b) The Provident Fund, Employee State Insurance Fund, Wealth tax,
custom duty, excise duty and Cess are not applicable to the Company.
c) According to the information and explanations given to us, no
undisputed amounts payable in respect of Investor Education Protection
Fund, Income Tax, Service Tax, and other material statutory dues were
in arrears as at 31.03.2010 for a period of more than six months from
the date they became payable.
d) According to the information and explanation given to us, the
following dues of the income tax have not been deposited by the company
on account of disputes:
Name of the Statue Nature of dues Amount Period to the
(Rs.) amount
Relates
Income Tax Act 1961 Income Tax 379,598 A.Y. 2005-06
Income Tax Act 1961 Income Tax 567,696 A.Y. 2006-07
Income Tax Act 1961 Income Tax 281,935 A.Y. 2007-08
Total 1,229,229
Name of the statue Forum where
dispute is pending
Income Tax Act 1961 CIT (A)
Income Tax Act 1961 CIT (A)
Income Tax Act 1961 CIT (A)
9) The Company has positive net worth at the end of the financial year.
The Company has no accumulated losses and had not incurred cash losses
during the current financial year and immediately preceding financing
year.
10) The Company has not taken any borrowings from financial
institutions, banks or debenture holders and therefore provisions of
clause (xi) of the Order are not applicable.
11) In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
12) In our opinion and according to the information and explanation
given to us, the Company has maintained proper records of transaction
and contracts in respect of dealing and trading in shares, securities
and other investments and timely entries have been made therein .All
the shares securities and other investments have been held by the
Company in its own.
13) According to the information and explanations given to us, the
Company has given guarantee for loans taken by its subsidiary and
associate companies, terms and conditions whereof in our opinion are
not prima-facie prejudicial to the interest of the Company.
14) According to information and explanation given to us the Company
has not obtained any term loan during the year and therefore provisions
of clause (xvi) of the Order are not applicable.
15) 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 short-term basis have been used for long-term
investment.
16) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares, during the
year, to parties and companies covered in the register maintained under
section 301 of the Companies Act, 1956.
17) Based upon the audit procedures performed for the purpose of
reporting the true and fair view of the financial statements and as per
the information and explanations given by the management, we have not
come across any instance of material fraud on or by the company noticed
or reported during the year.
18) In view of the nature of the activities carried by the Company,
Clause (xiii) of Companies (Auditors Report) Order, 2003 is not
applicable to the Company. Further in view of the absence of conditions
prerequisite to the reporting requirements of clauses (viii), (xix),
and (xx) the said clauses are at present not applicable.
For Chaturvedi & Shah
Chartered Accountants
(Registration No. 101720W)
Jignesh Mehta
Partner
Membership No: 102749
Place: Mumbai
Date: 29th May, 2010