Mar 31, 2023
Eldeco Housing and Industries Limited
We have audited the accompanying Standalone Financial Statements of Eldeco Housing and Industries Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st 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 ended and Notes to Financial Statements including a summary of the significant accounting policies and other explanatory information (hereinafter referred to as âthe Standalone 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 Indian Accounting Standards (IND AS) prescribed under Section 133 of the Act read with the Companies Rules, 2015, as amended and accounting principles generally accepted in India, of the state of affairs of the Company as at 31st March, 2023 and the profit (including other comprehensive income), changes in equity and its cash flows for the year then ended.
We conducted our audit of the Standalone Financial Statements in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor''s Responsibilities for the Audit of the Standalone Financial Statements Section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements that are relevant to our audit of the Standalone Financial Statements under the provisions of the Act and the Rules made thereunder and we have fulfilled our other ethical responsibilities in accordance with these requirements and the ICAI''s Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone Financial Statements.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Standalone Financial Statements of the current period. These matters were addressed in the context of our audit of the Standalone Financial Statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined following key audit matters to be communicated in our report:
Description of Key Audit Matters |
|
Key Audit Matters |
How the Key Audit Matter was addressed in our audit report |
Revenue Recognition |
Our audit procedures included following: |
The Company''s most significant revenue streams involve sale of |
⢠Evaluating the design and implementation and tested |
residential and commercial units representing 92.51% of the total |
operating effectiveness of key internal controls over revenue |
revenue from operations of the Group. Revenue is recognized post |
recognition. |
transfer of control of residential and commercial units to customers for the amount/consideration which the Company expects to receive in exchange for those units. The trigger for revenue recognition is normally completion of the project or receipt of approvals on completion from relevant authorities or intimation |
⢠Evaluating the accounting policies adopted by the Company for revenue recognition to check those are in line with the applicable accounting standards and their consistent application to the significant sales contracts. |
to the customer of completion, post which the contract becomes |
⢠Scrutinizing the revenue journal entries raised throughout |
non-cancellable. The Group records revenue over time till the |
the reporting period and comparing details of a sample of |
actual possession to the customers or on actual possession to the |
these journals, which met certain risk-based criteria, with |
customers, as determined by the terms of contract with customers. |
relevant underlying documentation. |
⢠Testing timeliness of revenue recognition by comparing individual sample sales transactions to underlying contracts. |
|
⢠Conducting site visits during the year for selected projects to understand the scope, nature and progress of the projects. |
|
⢠Considering the adequacy of the disclosures in the Standalone Financial Statements in respect of the judgments taken in recognizing revenue for residential and commercial property units in accordance with IND AS 115. |
INFORMATION OTHER THAN THE STANDALONE FINANCIAL STATEMENTS AND AUDITORâS REPORT THEREON
The Company''s Board of Directors are responsible for the preparation of the other information. The other information comprises the information included in the Board''s Report including Annexures to Board''s Report, Report on Corporate Governance and Management Discussion and Analysis, but does not include the financial statements and our auditor''s report thereon. The Board''s Report including Annexures to Board''s Report, Report on Corporate Governance and Management Discussion and Analysis is expected to be made available to us after the date of this Auditor''s Report.
Our opinion on the Standalone Financial Statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the Standalone Financial Statements, our responsibility is to read the other information and in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge 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.
RESPONSIBILITIES OF MANAGEMENT AND THOSE CHARGED WITH GOVERNANCE FOR THE STANDALONE FINANCIAL STATEMENTS
The Company''s Management and Board of Directors are responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these Standalone Financial Statements that give a true and fair view of the financial position, financial performance, total comprehensive income, changes in equity and cash flows of the Company in accordance with the accounting principal generally accepted in India including IND AS specified under Section 133 of the Act. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Standalone Financial Statements, Management and Board of Directors are responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Board of Directors either intends to liquidate the Company or to cease operations or has no realistic alternative but to do so.
The Board of Directors are responsible for overseeing the Company''s financial reporting process.
AUDITORâS RESPONSIBILITIES FOR THE AUDIT OF THE STANDALONE FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the Standalone Financial Statements as a whole are free from material misstatement, whether due to fraud or error and to issue an auditor''s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Standalone Financial Statements.
As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
⢠Identify and assess the risks of material misstatement of the Standalone Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
⢠Obtain an understanding of internal financial controls 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 in the Standalone Financial Statements by Management and the Board of Directors.
⢠Conclude on the appropriateness of Management''s use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company''s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor''s report to the related disclosures in the Standalone Financial Statements or if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor''s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
⢠Evaluate the overall presentation, structure and content of the Standalone Financial Statements, including the disclosures, and whether the Standalone Financial Statements represent the underlying transactions and event in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Standalone Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditor''s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
1. As required by the Companies (Auditor''s Report) Order, 2020 (âthe Orderâ) issued by the Central Government in terms of Section 143(11) of the Act, we give in âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the 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 it appears from our examination of those books.
c) The Balance Sheet, the Statement of Profit and Loss including Other Comprehensive Income, Statement of Changes in Equity and the Statement of Cash Flow dealt with by this Report are in agreement with the relevant books of account.
d) In our opinion, the aforesaid Standalone Financial Statements comply with the IND AS specified under Section 133 of the Act.
e) On the basis of the written representations received from the directors as on 31st March, 2023 taken on record by the Board of Directors, none of the directors is disqualified as on 31st 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. Our report expresses
an unmodified opinion on the adequacy and operating effectiveness of the Company''s internal financial controls over financial reporting.
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, 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 36 to the Standalone Financial Statements.
II. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses as at 31st March, 2023.
III. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
IV. (a) The Management has represented that, to the
best of its knowledge and belief, no funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (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, no funds have been received by the Company from any person(s) or entity(ies), including foreign entities (âFunding Partiesâ), 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.
(c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances, nothing has come to our notice that has caused us to believe that the representations as provided under (a) and (b) above, contain any material misstatement.
V. (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) No interim dividend was declared or paid during the year by the Company.
(c) 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 dividend declared is in accordance with Section 123 of the Act to the extent it applies to declaration of dividend.
VI. As proviso to Rule 3(1) of the Companies (Account) Rules, 2014 is applicable for the Company only with effect from 1st April, 2023 reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 is not applicable.
3. As required by Section 197(16) of the Act based on our audit, we report that the Company has paid remuneration to its directors during the year in accordance with the provisions of and limits laid down under Section 197 read with Schedule V to the Act.
For Doogar & Associates
Chartered Accountants
Firmâs Registration Number: 000561N
CA Udit Bansal Partner
Membership number: 401642 UDIN: 23401642BGXJSQ3255
Place: New Delhi Date: 15th May, 2023
Mar 31, 2018
Report on the Standalone Financial Statements
We have audited the accompanying standalone Ind AS financial statements of Eldeco Housing and Industries Limited (âthe Companyâ), which comprise the Balance Sheet as at 31st March, 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity 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 Standalone Ind AS 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 and presentation of these standalone Ind AS financial statements that give a true and fair view of the financial position, financial performance (including other comprehensive income) cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Act, read with relevant rules issued thereunder. 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 Ind AS 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 Ind AS 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 of the Standalone Ind AS financial statements 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 standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the standalone Ind AS financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the standalone Ind AS 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 standalone Ind AS 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 the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the standalone Ind AS 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 Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone Ind AS 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, 2018 and its profit (including other comprehensive income) its cash flows and the changes in equity for the year ended on that date.
Other Matters
The Financial Statements of the Company for the year ended 31st March 2017 and the transition date opening balance sheet as at 1st April 2016 included in the Standalone Ind AS financial statements, are based on the previously issued statutory financial statements for the years ended 31st March, 2017 and 31st March, 2016 prepared in accordance with the Companies (Accounting Standard) rules 2006 (as amended) which were audited by another auditor namely M/s Doogar & Associates, Chartered Accountants, on which they expressed an unmodified opinion dated 26th May, 2017 and 27th May,2016 respectively. The adjustments to those financial statements for the differences in accounting principles adopted by the Company on transition to Ind AS have been audited by us, on which we have expressed an unmodified opinion vide our report dated 25th May, 2018.
Our opinion is not qualified in respect of their matter.
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 Annexure âAâ, a statement on the matters specified in the paragraph 3 and 4 of the order.
2. As required by Section 143 (3) ofthe 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 Cash Flow Statement and the Statement of changes in Equity dealt with by this Report are in agreement with the books of account;
d) In our opinion, the aforesaid standalone Ind AS financial statements comply with the Indian Accounting Standards prescribed under Section 133 ofthe Act, read with relevant rules issued thereunder;
e) On the basis of the written representations received from the directors as on 31st March, 2018 taken on record by the Board of Directors, none of the directors is disqualified as on 31st March, 2018 from being appointed as a director in terms of Section 164 (2) ofthe 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; and
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, 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 36 to the standalone Ind AS financial statements;
II. The Company has made provision, as required under the applicable law or accounting standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts.
III. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
1. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of two years. In accordance with this programme, certain fixed assets verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and nature ofits assets.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deed of immovable properties are held in the name of the Company except capital expenditure in earlier years on building capitalized on property taken on lease.
2. The inventory includes land, completed real estate projects, project in progress, construction material. Physical verification of inventory has been conducted at reasonable intervals by the management and discrepancies noticed which were not material in nature have been properly dealt with in the books of accounts.
3. The company has granted loans (secured or unsecured) to companies covered in the register maintained under section 189 ofthe Companies Act, 2013.
(a) The terms and conditions on which loans have been granted to the companies covered in the register maintained under section 189 of the Act are not, prima facie, prejudicial to the interest of the Company.
(b) The companies covered in the register maintained under Section 189 of the Act are regular in payment of principle and interest on demand.
(c) There are no overdue amounts in respect of loan granted to the companies covered in the register maintained under Section 189 ofthe Act.
4. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.
5. The Company has not accepted any deposits from the public. Accordingly, paragraph 3 (v) of the order is not applicable to the Company.
6. According to the information and explanations given to us, the cost records have been maintained by the company pursuant to section 148 (1) of the Companies Act 2013 and are of the opinion that, prima facie, the prescribed cost records have been made and maintained, however, we have not made a detailed examination of such cost records.
7. (a) According to the information & explanations given to us and on the basis of our examination of the records of the Company, Company is generally regular in depositing with the appropriate authorities undisputed statutory dues including provident fund, employeesâ state insurance, income tax , sales tax, service tax, duty of customs, excise, value added tax, GST, cess and any other statutory dues applicable to it and there are no undisputed statutory dues outstanding as at 31st March, 2018 for a period exceeding six months from the date they became payable.
(b) According to the information & explanations given to us, there are no dues of income tax, sales tax, service tax, duty of customs, duty of excise, value added tax, GST or cess which have not been deposited on account of any dispute, except the following, along with the forum where dispute is pending:
Name of the Statute |
Nature of the dues/Period to which it relates |
Amount (in Rs) |
Forum where dispute is pending |
Income Tax Act |
Income Tax/ A.Y. 2013-14 |
5,43,003 |
ITAT, New Delhi |
8. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to a financial institutions or banks. During the year Company has not issued any debentures. Further the Company has old outstanding of Rs. 46.07 lacs (shown in Note 19 of balance sheet) from City Cooperative Bank, Lucknow in overdraft account against FDRâs of Rs. 106.29 lacs. The said bank has discontinued its operations; however the company has applied for repayment of fixed deposits after adjustment of the balance outstanding in the overdraft account. A writ petition is also pending in respect of the same in Honâble Allahabad High Court.
9. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3(ix) of the Order is not applicable.
10. According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
11. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act.
12. Our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3 (xii) of the Order is not applicable.
13. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
14. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year. Accordingly paragraph 3(xv) of the order are not applicable.
15. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered in to non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
16. The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.
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 Eldeco Housing and Industries Limited (âthe Companyâ) as of 31st March, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date.
Managementâs Responsibility for 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 (âICAIâ). 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 Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s 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 Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the 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 company''s 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 company''s 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 company''s 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 ofthe 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, 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 Institute of Chartered Accountants of India.
For B S D & Co.
Chartered Accountants
Firmâs registration number: 000312S
C A Warsha Singhania
Partner
Membership number: 520935
Place: Lucknow
Date: May 25,2018
Mar 31, 2016
To
The Members of
Eldeco Housing and Industries Limited Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Eldeco Housing and Industries Limited (âthe Companyâ), which comprise the Balance Sheet as at 31 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 Standalone 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 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 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 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 misstatements.
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 the accounting policies used and the reasonableness of the accounting estimates made by 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 31 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 Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by section 143(3)of the Act, we report 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 31 March, 2016, taken on record by the Board of Directors, none of the directors is disqualified as on 31 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; and
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 30 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.
1. (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner over a period of two years. In accordance with this programme, certain fixed assets were verified during the year and no material discrepancies were noticed on such verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the company, no immovable properties are owned by the company.
2. (a) The inventories includes land, completed real estate projects, project in progress, and construction material the same has been physically verified at reasonable intervals by the management during the year.
(b) In our opinion and according to the information and explanations given to us the procedures followed by the management for such physical verification are reasonable and adequate in relation to the size of the Company and the nature of its business.
(c) In our opinion Company is maintaining proper records of inventory. The discrepancies noticed on physical verification of inventory as compared to book records were not material and have been properly dealt with in the books of accounts.
3. According to information and explanation given to us the Company has not granted any secured or unsecured loans, to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act, 2013. Accordingly, paragraph 3(iii) of the order is not applicable to the Company.
4. In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.
5. The Company has not accepted any deposits from the public. Accordingly, paragraph 3 (v) of the order is not applicable to the Company.
6. According to the information and explanations given to us, the cost records have been maintained by the company pursuant to section 148 (1) of the Companies Act 2013 and are of the opinion that, prima facie, the prescribed cost records have been made and maintained, however, we have not made a detailed examination of such cost records.
7. (a) According to the information & explanations given
to us and on the basis of our examination of the records of the Company, Company is generally regular in depositing with the appropriate authorities undisputed statutory dues including provident fund, employeesâ state insurance, income tax, sales tax, service tax, duty of customs, excise, value added tax, cess and any other statutory dues applicable to it and there are no undisputed statutory dues outstanding as at 31 March,2016 for a period exceeding six months from the date they became payable.
(b) According to the information & explanations given to us, there are no dues of income tax, sales tax, service tax, duty of customs, duty of excise, value added tax or cess which have not been deposited on account of any dispute, except the following, along with the forum where dispute is pending:.
Name of the Statute |
Nature of the dues/Period to which it relates |
Amount (inRs) |
Forum where dispute is pending |
Income Tax Act |
Income Tax/ A. Y. 2009-10 |
2,15,355 |
ITAT,Agra |
Income Tax Act |
Income Tax/ A. Y. 2013-14 |
5,43,003 |
CIT (Appeal) -I, Kanpur |
UPVAT Act |
VAT/ F.Y. 2011-12 |
4,18,812 |
Addl. Commissioner Grade II (Appeals), Range III, Agra |
UP VAT Act |
Entry Tax/ F.Y. 2011-12 |
2,24,921 |
Addl. Commissioner Grade II (Appeals), Range III, Agra |
UP VAT Act |
VAT/ F.Y. 2012-13 |
20,29,366 |
Addl. Commissioner Grade II (Appeals), Range III, Agra |
8. In our opinion and according to the information and explanations given to us, the Company has not defaulted in repayment of dues to a financial institutions or banks. The Company has not issued any debentures. Further the Company has old outstanding of Rs. 46.07 lacs (shown in Note 8 of balance sheet) from City Cooperative Bank, Luck now in overdraft account against FDRâs of Rs. 106.29 lacs. The said bank has discontinued its operations, however the company has applied for repayment of fixed deposits after adjustment of the balance outstanding in the overdraft account. A writ petition is also pending in respect of the same in Honâble Allahabad High Court.
9. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3(ix) of the Order is not applicable.
10. According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
11. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has paid/provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Act. Further during the year company has made a provision of Rs. 50 lacs for payment of Directorâs Remuneration to the Managing Director which was approved in the Annual General Meeting held on 25th September, 2015 subject to the approval of the Central Government. The approval from Central Government is still awaited. (Refer Note no. 40)
12. In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3 (xii) of the Order is not applicable.
13. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
14. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
15. According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered in to non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
16. The Company is not required to be registered under section 45-IA of the Reserve Bank of IndiaAct 1934.
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âtheActâ)
We have audited the internal financial controls over financial reporting of Eldeco Housing and Industries Limited (âthe Companyâ) as of 31 March 2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.
Managementâs Responsibility for 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 (TCAIâ). 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 Companies Act, 2013.
Auditorsâ Responsibility
Our responsibility is to express an opinion on the Company''s 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 Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the 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 company''s 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 company''s 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 company''s 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 31 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 Institute of Chartered Accountants of India.
FOR DOOGAR & ASSOCIATES
Chartered Accountants
(Firm Reg No-000561N)
Place: Lucknow (CA. UDIT BANSAL)
Dated: 27th May, 2016 Partner
M. No. 401642
Mar 31, 2015
We have audited the accompanying standalone financial statements of
Eldeco Housing & Industries Limited ("the Company"), which comprise the
Balance Sheet as at March 31, 2015, and the Statement of Profit and
Loss, 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 Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation 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
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 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 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
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 misstatements.
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 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 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 control
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 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 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, 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
sub-section (11) of section 143 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 3 and 4 of the Order,
to the extent applicable.
2. As required by section 143(3) of the Act, we report that:
a) we have sought and obtained all the information and explanations
which to the best of our knowledge and belief were necessary for the
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 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 31,2015, taken on record by the Board of Directors, none of
the directors is disqualified as on March 31,2015, 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 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 30 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.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in Paragraph 1 under the heading "Report on Other Legal
and Regulatory Requirements" of our report of even date on the accounts
of Eldeco Housing & Industries Limited for the year ended 31st March,
2015)
1. (a) The Company has maintained proper records to show full
particulars including quantitative details and situation of fixed
assets.
(b) The fixed assets have been physically verified by the management at
the reasonable intervals, which in our opinion, is reasonable having
regard to the size of the Company and the nature of its assets.
According to the information and explanations given to us, no material
discrepancies were noticed on such verification.
2. (a) The inventories has been physically verified at reasonable
intervals by the management during the year.
(b) In our opinion and according to the information and explanations
given to us the procedures followed by the management for such physical
verification are reasonable and adequate in relation to the size of the
Company and the nature of its business.
(c) In our opinion Company is maintaining proper records of inventory.
The discrepancies noticed on physical verification of inventory as
compared to book records were not material and have been properly dealt
with in the books of accounts.
3. (a) According to information and explanation given to us the Company
has not granted any secured or unsecured loans, to companies, firms or
other parties covered in the register maintained under section 189 of
the Companies Act, 2013. Therefore, the provisions of the clause 3 (iii)
(a),(b) of the order are not applicable to the Company.
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 nature of its business with regard to
the purchase of inventory, fixed assets and also for the sale of goods
& services. Further on the basis of our examination of the books of the
Company, carried out in accordance with the generally accepted auditing
practices in India, we have neither come across nor have been informed
of any instance of major weaknesses in the aforesaid internal control
systems.
5. According to the information and explanations given to us, the
Company has not accepted any deposit from the public within the meaning
of provisions of section 73 to 76 or any other relevant provisions of
the Companies Act, 2013 and the rules framed there under.
6. According to the information and explanations given to us, the cost
records have been maintained by the company pursuant to section 148 (1)
of the Companies Act, 2013, and are of the opinion that, prima facie,
the prescribed cost records have been made and maintained, however, we
have not made a detailed examination of such cost records.
7. (a) According to the information & explanations given to us, the
Company is generally regular in depositing with the appropriate
authorities undisputed statutory dues including provident fund,
employees' state insurance, income tax , sales tax, wealth tax, service
tax, duty of customs, excise, value added tax, cess and any other
statutory dues applicable to it and there are no undisputed statutory
dues outstanding as at March 31, 2015, for a period exceeding six months
from the date they became payable.
(b) According to the information & explanations given to us, there are
no dues of provident fund, employees' state insurance, income tax,
sales tax, wealth tax, service tax, duty of customs, duty of excise,
value added tax or cess which have not been deposited on account of any
dispute ,except the following, along with the forum where dispute is
pending:.
Name Nature of the Amount Forum where
of the dues/ Period to (in Rs) dispute is
Statute which it relates pending
Income Income Tax/ ITAT, Agra
Tax Act A.Y. 2009-10 2,15,355
Income Income Tax/ CIT (Appeal) -
Tax Act A.Y. 2013-14 5,43,003 I, Kanpur
(c ) According to the information and explanation given to us, the
amount required to be transferred to Investor Education and Protection
Fund in accordance with the relevant provisions of Companies Act, 1956,
and rules made there under has been transferred to such fund within
time.
8. The Company does not have any accumulated losses at the end of the
financial year. The Company has not incurred cash losses in the
financial year covered by our audit and in the immediately preceding
financial year.
9. In our opinion 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 a Financial Institution or Bank. The Company has
not issued any debentures.
10. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from Bank
or Financial Institutions.
11. In our opinion, and according to the information and explanations
given to us, term loans have generally been applied for the purposes
for which they were raised.
12. To the best of our knowledge and belief and according to the
information and explanations given to us, no material fraud on or by
the Company has been noticed or reported during the course of our
audit.
FOR DOOGAR & ASSOCIATES
Chartered Accountants
(Firm Reg No-000561N)
Place: Lucknow (CA. UDIT BANSAL)
Dated: 30th May, 2015 Partner
M. No. 401642
Mar 31, 2014
We have audited the accompanying financial statements of Eldeco Housing
& Industries Limited ("the Company"), which comprise the Balance
Sheet as at March 31,2014, and 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 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") 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.
This responsibility includes the design, implementation and maintenance
of internal control 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.
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 Chaitered
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 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 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 Company''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 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 March 31,2014;
b) in the case of the Statement of Profit and Loss, of the Profit 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
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 section 227(3) 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 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 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 Companies Act,
1956 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;
e) on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
(Referred to in Paragraph 1 under the heading of "Report on Other
Legal and Regulatory Requirements" of our Report of even date on the
accounts of Eldeco Housing & Industries Limited for the year ended 31st
March'', 2014)
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The Company has a phased programme of physical verification of its
fixed assets which in our opinion is reasonable having regard to the
size of the company and the nature of its assets. Management has
physically verified certain fixed assets during the year and no
material discrepancies were noticed on such verification.
(c) Fixed assets disposed off during the year were not substantial and
therefore do not affect the going concern assumption.
2. (a) The inventories of building materials, stores, finished flats
and shops have been physically verified by the management during the
year.
(b) As explained to us and in our opinion the procedure followed by the
Management for such physical verification is reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) In our opinion, Company is maintaining proper records of inventory.
The discrepancies noticed on physical verification of inventory as
compared to book records were not material and have been properly dealt
with in the books of accounts.
3. (a) The Company has not granted loans, secured or unsecured to
companies, firms or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.Therefore clause 4(iii)
(a) to (d) are not applicable to the Company.
(b) The Company had not taken any loans, secured or unsecured from
companies, firms, or other parties covered in the register maintained
under section 301 of the Companies Act, 1956.Therefore clause 4(iii)
(e) to (g) are not applicable to the Company.
4. In our opinion and according to the information and explanation
given to us, during the course of audit, there are adequate internal
control systems commensurate with the size of the company and nature of
its business with regard to the purchase of inventory, fixed assets
and with regard to the sale of goods and services. Further on the
basis of our examination of the books and records of the Company,
carried out in accordance with the generally accepted auditing
principles in India, we have neither come across nor have we been
informed of any instance of major weaknesses in internal control
system.
5. (a) In our opinion and according to the information and
explanations given to us, we are of the opinion that the particulars of
contracts or arrangements referred to in register maintained u/s 301 of
the Companies Act, 1956 have been entered in the register maintained
under section 3 01 of the Act.
(b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of contracts or
arrangements entered in to the register required to be maintained in
pursuance of section 301 of the Act and exceeding the value of rupees
five lacs in respect of any party during the year have generally been
made, at prices which are reasonable having regard to the prevailing
market price at the relevant time.
6. In our opinion and according to the explanations given to us, the
Company has complied with the provisions of Section 58A and 58AA or any
other relevant provision of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) Rules, 1975 with regard to the deposit
accepted from the public.
7. In our opinion, the Company has an internal audit system
commensurate with the size of the Company & nature of its business.
8. We have broadly reviewed the cost records maintained by the company
pursuant to companies (cost accounting records) Rules, 2011 prescribed
by the Central Government under section 209( 1 )(d) of the Companies
Act, 1956 and are of the opinion that prima-facie, the prescribed
records have been maintained, however we have not made a detailed
examination of such records to ascertain whether they are accurate or
complete.
9.(a) According to the information and explanations given to us,
undisputed statutory dues including Provident Fund, Investor
Education and Protection Fund, Employees State Insurance, Income Tax,
Sales tax, Wealth Tax,Service Tax , Excise duty, Customs Duty, Cess
and other statutory dues have been generally regularly deposited with
the appropriate authorities during the year and there are no undisputed statutory dues outstanding as on the date of balance sheet for a period exceeding six months from the date they became payable.
(b) According to the information & explanations given to us, and as per
the books and records examined by us there are no dues of Provident
Fund, Investor Education and Protection Fund, Employees State
Insurance, Income Tax, Sales Tax, Wealth Tax, Service Tax, Excise duty,
Customs Duty, Cess which have not been deposited on account of any
dispute, except the followings
Name of Nature of the Amount
the dues/Periodto (inRs)
Statute which it relates
Income Income Tax/
TaxAct A.Y. 2009-10 2,15,355
Trade Vat/
TaxAct F.Y.2009-10 8,27,649
Name of the statue Forum where dispute is pending
Income tax Act ITAT,Agra
Trade Addl.
Tax Act Commissioner Appeals-II -Trade Tax, Agra
10. The Company has no 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 year.
11. According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to any Financial
Institutions, Banks or Debenture Holders. The Company has old
outstanding of Rs.46.07 lacs from City co-operative Bank, Lucknow in
overdraft account against FDRs of Rs. 106.29 Lacs. The aforesaid Bank
has closed down its operations. The Company has however applied for
adjustment of the outstanding against FDRs.
12. According to the information and explanations given to us the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures or other securities.
13. The provisions of clause 4(xiii) of the Companies (Auditor''s
Report) Order, 2003 are not applicable to the Company as the Company is
not a Chit Fund or a Nidhi/Mutual Benefit Fund/Society.
14. The provisions of clause 4(xiv) of the Companies (Auditor''s
Report) Order, 2003 are not applicable to the Company as the Company is
not dealing in or trading in shares, securities, debentures and other
investments.
15. To the best of our information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
16. To the best of our information and explanations given to us, term
loan raised have been applied for the purpose for which they were
received.
17. According to the information and explanations given to us, we
report that no funds raised on short-term basis have been used for
long- term investments.
18. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares to Parties
and Companies /firms/parties covered in the register maintained under
Section301 ofthe Companies Act, 1956.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money by way of public issue during
the year.
21. During the course of our examination of the books and records of
the Company carried out in accordance with the generally accepted
auditing practices in India we have neither come across any instance of
fraud on or by the Company, noticed and reported during the year, nor
have we been informed of such case by the management.
FOR DOOGAR & ASSOCIATES
Chartered Accountants
(Firm Reg No-000561N)
Place: Lucknow (CA. UDIT BANSAL)
Dated: 30th May, 2014 Partner
M, No. 401642
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of Eldeco Housing
& Industries Limited ("the Company"), which comprise the Balance Sheet
as at March 31, 2013, and 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 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 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 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 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 March 31, 2013;
b) in the case of the Statement of Profit and Loss, of the Profit 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
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 section 227(3) 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 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, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
e) on the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) The Company has a phased programme of physical verification of its
fixed assets which in our opinion is reasonable having regard to the
size of the company and the nature of its assets. Management has
physically verified certain fixed assets during the year and no
material discrepancies were noticed on such verification.
(c) Fixed assets disposed off during the year were not substantial and
therefore do not affect the going concern assumption.
2. (a) The inventories of building materials, stores, finished flats
and shops have been physically verified by the management during the
year.
(b) As explained to us and in our opinion the procedure followed by the
Management for such physical verification is reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) In our opinion, Company is maintaining proper records of inventory.
The discrepancies noticed on physical verification of inventory as
compared to book records were not material and have been properly dealt
with in the books of accounts.
3. (a) The Company has not granted loans, secured or unsecured to
companies ,firms or other parties covered in the register maintained
under section 301 of the companies Act,1956.Therefore clause 4(iii) (a)
to (d) are not applicable to the Company. (b) The Company had not
taken any loans, secured or unsecured from companies, firms, or other
parties covered in the register maintained under section 301 of the
companies Act, 1956.Therefore clause 4(iii) (e) to (g) are not
applicable to the Company.
4. In our opinion and according to the information and explanation
given to us, during the course of audit, there are adequate internal
control systems commensurate with the size of the company and nature of
its business with regard to the purchase of inventory, fixed assets and
with regards to the sale of goods and services. Further on the basis of
our examination of the books and records of the Company, carried out in
accordance with the generally accepted auditing principles in India, we
have neither came across nor have we been informed of any instance of
major weaknesses in internal control system.
5. (a) In our opinion and according to the information and
explanations given to us, we are of the opinion that the particulars of
contracts or arrangements referred to in register maintained u/s 301 of
the Companies Act, 1956 have been entered in the register maintained
under section 301 of the Act. (b) In our opinion and according to the
information and explanations given to us, transactions made in
pursuance of contracts or arrangements entered in to the register
required to be maintained in pursuance of section 301 of the Act and
exceeding the value of rupees five lacs in respect of any party during
the year have generally been made, at prices which are reasonable
having regard to the prevailing market price at the relevant time.
6. In our opinion and according to the explanations given to us, the
Company has complied with the provisions of Section 58A and 58AA or any
other relevant provision of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) Rules, 1975 with regard to the deposit
accepted from the public.
7. In our opinion, the Company has an internal audit system
commensurate with the size of the Company & nature of its business.
8. We have broadly reviewed the cost records maintained by the company
pursuant to companies (cost accounting records) Rules, 2011 prescribed
by the Central Government under section 209(1)(d) of the Companies
Act,1956 and are of the opinion that prima-facie, the prescribed
records have been maintained, however we have not made a detailed
examination of such records to ascertain whether they are accurate or
complete.
9. (a) According to the information and explanations given to us,
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees State Insurance, Income Tax, Sales tax,
Wealth Tax, Service Tax , Excise duty, Customs Duty, Cess and other
statutory dues have been generally regularly deposited with the
appropriate authorities during the year and there are no undisputed
statutory dues outstanding as on the date of balance sheet for a period
exceeding six months from the date they became payable.
10. The Company has no 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 year.
11. According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to any Financial
Institutions, Banks or Debenture Holders. The Company has old
outstanding of Rs.46.07 lacs from City co-operative Bank, Lucknow in
overdraft account against FDRs of Rs. 106.29. The aforesaid Bank has
closed down its operations. The Company has however applied for
adjustment of the outstanding against FDRs.
12. According to the information and explanations given to us the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures or other securities.
13. The provisions of clause 4(xiii) of the Companies (Auditor''s
Report) Order, 2003 are not applicable to the Company as the Company is
not a Chit Fund or a Nidhi/Mutual Benefit Fund/Society.
14. The provisions of clause 4(xiv) of the Companies (Auditor''s
Report) Order, 2003 are not applicable to the Company as the Company is
not dealing in or trading in shares, securities, debentures and other
investments.
15. To the best of our information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
16. To the best of our information and explanations given to us, term
loan raised during the year have been applied for the purpose for which
they were received.
17. According to the information and explanations given to us, we
report that no funds raised on short-term basis have been used for
long- term investments.
18. The Company has not made any preferential allotment of shares to
Parties and Companies covered in the register maintained under Section
301 of the Companies Act, 1956.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money by way of public issue during
the year.
21. During the course of our examination of the books and records of
the Company carried out in accordance with the generally accepted
auditing practices in India we have neither come across any instance of
fraud on or by the Company, noticed and reported during the year, nor
have we been informed of such case by the management.
FOR DOOGAR & ASSOCIATES
Chartered Accountants
(Firm Reg. No-000561N)
Place: Lucknow (CA UDIT BANSAL)
Dated: 30th May, 2013 Partner
M. No. 401642
Mar 31, 2012
1. We have audited the attached Balance Sheet of Eldeco Housing and
Industries Limited as at 31st March 2012, the Statement of Profit and
Loss and 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.
2. 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors' Report) Order, 2003 as
amended by the Companies (Auditors' Report) (Amendment) Order, 2004
(together the "Order") issued by the Central Government, of India
in terms of Section 227 (4A) of the Companies Act 1956 and on the basis
of such examination of the books and records of the company as we
considered appropriate and according to the information and
explanations given to us during the course of the audit, we enclose in
the Annexure hereto a statement on the matters specified in paragraph 4
& 5 of the said Order.
4. Further to our comments in the annexure referred to in paragraph 3
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, proper books of account, as required by law, have
been kept by the Company so far as it appears from our examination of
those books;
(c) The Balance Sheet, the Statement of Profit and Loss and 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 Cash Flow Statement dealt with by this report are in compliance
with the Accounting Standards referred to in Sub-Section (3C) of
Section 211 of the Companies Act, 1956;
(e) On the basis of written representations received from the Directors
as at 31st March, 2012 and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2012 from being appointed as a director in terms of clause (g) of
sub-section (1) of Section 274 ofthe Companies Act, 1956;
5. Without qualifying our report attention is drawn to note no. 39 and
for reasons stated therein, tax liability if any, in respect of search
conducted by the Income Tax authorities during the year which is
presently unascertainable, will be recognized on conclusion of search
proceedings.
6. 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:-
(a) in the case of Balance Sheet of the state of affairs of the Company
as at 31st March, 2012;
(b) in the case of the Statement of Profit and Loss, of the Profit for
the year ended on that date; and
(c) in the case of the Cash flow statement, of the Cash flows of the
Company for the year ended on that date.
ANNEXURE TO AUDITORS' REPORT
(Referred to in Paragraph 3 of our Report ofeven date on the accounts
of Eldeco Housing & Industries Limited for the year ended 31st March,
2012)
1. (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed assets.
(b) The Company has a phased programme of physical verification of its
fixed assets which in our opinion is reasonable having regard to the
size of the company and the nature of its assets. Management has
physically verified certain fixed assets during the year and no
material discrepancies were noticed on such verification.
(c) Fixed assets disposed off during the year were not substantial and
therefore do not affect the going concern assumption.
2. (a) The inventories of building materials, stores, finished flats
and shops have been physically verified by the management during the year.
(b) As explained to us and in our opinion the procedure followed by the
Management for such physical verification is reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) In our opinion, Company is maintaining proper records of inventory.
The discrepancies noticed on physical verification of inventory as
compared to book records were not material and have been properly dealt
with in the books of accounts.
3. (a) The Company has not granted loans, secured or
unsecured to companies ,firms or other parties covered in the register
maintained under section 301 of the companies Act,1956.Therefore clause
4(iii)
(a) to (d) are not applicable to the Company.
(b) The Company had not taken any loans, secured or unsecured from
companies, firms, or other parties covered in the register maintained
under section 301 of the companies Act, 1956.Therefore clause 4(iii)
(e) to (g) are not applicable to the Company.
4. In our opinion and according to the information and explanation
given to us, during the course of audit, there are adequate internal
control systems commensurate with the size of the company and nature of
its business with regard to the purchase of inventory, fixed assets and
with regards to the sale of goods and services. Further on the basis of
our examination of the books and records of the Company, carried out in
accordance with the generally accepted auditing principles in India, we
have neither came across nor have we been informed of any instance of
major weaknesses in internal control system.
5. (a) In our opinion and according to the information and
explanations given to us, we are of the opinion that the particulars of
contracts or arrangements referred to in register maintained u/s 301 of
the Companies Act, 1956 have been entered in the register maintained
under section 301 of the Act.
(b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of contracts or
arrangements entered in to the register required to be maintained in
pursuance of section 301 of the Act and exceeding the value of rupees
five lacs in respect of any party during the year have generally been
made, at prices which are reasonable having regard to the prevailing
market price at the relevant time.
6. In our opinion and according to the explanations given to us, the
Company has complied with the provisions of Section 58A and 58AA or any
other relevant provision of the Companies Act, 1956 and the Companies
(Acceptance ofDeposits) Rules, 1975 with regard to the deposit accepted
from the public.
7. In our opinion, the Company has an internal audit system
commensurate with the size of the Company
& nature of its business.
8. We have broadly reviewed the cost records maintained by the company
pursuant to companies (cost accounting records) Rules, 2011 prescribed
by the Central Government under section 209(1)(d) of the Companies
Act,1956 and are of the opinion that prima-facie, the prescribed
records have been maintained.
9. (a) According to the information and explanations
given to us, undisputed statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees State Insurance,
Income Tax, Sales tax, Wealth Tax, Service Tax , Excise duty, Customs
Duty, Cess and other statutory dues have been generally regularly
deposited with the appropriate authorities during the year and there
are no undisputed statutory dues outstanding as on the date of balance
sheet for a period exceeding six months from the date they became
payable.
(b) According to the information & explanations given to us, and as per
the books and records examined by us there are no dues of Provident
Fund, Investor Education and Protection Fund, Employees State
Insurance, Income Tax, Sales tax, Wealth Tax, Service Tax , Excise
duty, Customs Duty, Cess which have not been deposited on account of
any dispute, except the followings
Name of Nature of
the Amount Forum where
the
Statute dues/Period
to (in Rs) dispute is
which it
relates pending
Income Income Tax/ 5,46,760 CIT(A), Agra
Tax Act A.Y.
2009-10
10. The Company has no 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 year.
11. According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to any Financial
Institutions, Banks or Debenture Holders. The Company has old
outstanding of Rs.46.07 lacs from City co-operative Bank, Lucknow in
overdraft account against FDRs of Rs. 106.29. The aforesaid Bank has
closed down its operations. The Company has however applied for
adjustment of the outstanding against FDRs.
12. According to the information and explanations given to us the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures or other securities.
13. The provisions of clause 4(xiii) of the Companies (Auditor's
Report) Order, 2003 are not applicable to the Company as the Company is
not a Chit Fund or a Nidhi/Mutual Benefit Fund/Society.
14. The provisions of clause 4(xiv) of the Companies (Auditor's
Report) Order, 2003 are not applicable to
the Company as the Company is not dealing in or trading in shares,
securities, debentures and other investments.
15. To the best of our information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
16. To the best of our information and explanations given to us, no
term loans were raised by the company during the year.
17. According to the information and explanations given to us, we
report that no funds raised on short- term basis have been used for
long- term investments.
18. The Company has not made any preferential allotment of shares to
Parties and Companies covered in the register maintained under Section
301 ofthe Companies Act, 1956.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money by way of public issue during
the year.
21. During the course of our examination of the books and records of
the Company carried out in accordance with the generally accepted
auditing practices in India we have neither come across any instance of
fraud on or by the Company, noticed and reported during the year, nor
have we been informed of such case by the management.
FOR DOOGAR & ASSOCIATES
Chartered Accountants
(Firm Reg. No-000561N)
Place: Lucknow (CA UDIT BANSAL)
Dated: 29th August, 2012 Partner
M. No. 401642
Mar 31, 2010
1. We have audited the attached Balance Sheet of Eldeco Housing and
Industries Limited 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.
2. 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 financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 as
amended by the Companies (Auditors Report) (Amendment) Order, 2004
issued by the Central Government of India in terms of Section 227 (4A)
of the Companies Act 1956 and on the basis of such checks as we
considered appropriate and according to the information and
explanations given to us, we enclose in the Annexure hereto a statement
on the matters specified in paragraph 4 & 5 of the said Order.
4. Further to our comments in the annexure referred to in paragraph 3
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, 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 Profit and Loss Account and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
(d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash
Flow Statement dealt with by this report are in compliance with the
mandatory Accounting Standards referred to in Sub-Section (3C) of
Section 211 of the Companies Act, 1956;
(e) On the basis of written representations received from the Directors
as at 31st March, 2010 and taken on record by the Board of Directors,
we report that none of the directors is disqualified as on 31st March,
2010 from being appointed as a director in terms of clause (g) of
Section 274 (1) of the Companies Act, 1956;
5. 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:
(a) in the case of Balance Sheet of the state of affairs of the Company
as at 31st March, 2010;
(b) in the case of the Profit and Loss Account, of the Profit for the
year ended on that date; and
(c) in the case of the Cash flow statement, of the Cash flows of the
Company for the year ended on that date.
ANNEXURE TO AUDITORS REPORT
(Referred to in Paragraph 3 of our Report of even date on the accounts
of Eldeco Housing & Industries Limited for the year ended 31st March,
2010)
1. (a) The Company has maintained proper records to show
full particulars including quantitative details and situation of fixed
assets.
(b) The Company has a phased programme of physical verification of its
fixed assets which in our opinion is reasonable having regard to the
size of the company and the nature of its assets. Management has
physically verified certain fixed assets during the year and no
material discrepancies were noticed on such verification.
(c) Fixed assets disposed off during the year were not substantial and
therefore do not affect the going concern assumption.
2. (a) The inventories of building materials, stores, finished flats
and shops have been physically verified by the management during the
year.
(b) As explained to us and in our opinion the procedure followed by the
Management for such physical verification is reasonable and adequate in
relation to the size of the Company and the nature of its business.
(c) In our opinion, Company is maintaining proper records of inventory.
The discrepancies noticed on physical verification of inventory as
compared to book records were not material and have been properly dealt
with in the books of accounts.
3. (a) The Company has not granted loans, secured or unsecured to
companies ,firms or other parties covered in the register maintained
under section 301 of the companies Act,1956.Therefore clause 4(iii) (a)
to (d) are not applicable to the Company.
(b) The Company had not taken any loans, secured or unsecured from
companies, firms, or other parties covered in the register maintained
under section 301 of the companies Act, 1956.Therefore clause 4(iii)
(e) to (g) are not applicable to the Company.
4. In our opinion and according to the information and explanation
given to us during the course of audit, there are adequate internal
control procedures commensurate with the size of the company and nature
of its business with regard to the purchase of inventory and fixed
assets and services. Further on the basis of our examination of the
books and records of the Company, carried out in accordance with the
generally accepted auditing principles in India, we have neither came
across nor have we been informed of any instance of major weaknesses in
internal control procedures.
5. (a) Based upon the audit procedures applied by us and according to
the information and explanations given to us, we are of the opinion
that the particulars of contracts or arrangements referred to in
register maintained u/s 301 of the Companies Act, 1956 have been
entered in the register maintained under section 301 of the Act.
(b) In our opinion and according to the information and explanations
given to us, transactions made in pursuance of contracts or
arrangements have been made, at prices which are reasonable having
regard to the prevailing market price at the relevant time.
6. In our opinion and according to the explanations given to us, the
Company has complied with the provisions of Section 58A and 58AA or any
other relevant provision of the Companies Act, 1956 and the Companies
(Acceptance of Deposits) Rules, 1975 with regard to the deposit
accepted from the public.
7. In our opinion, the Company has an internal audit system
commensurate with the size & nature of its business.
8. As informed to us, the maintenance of cost records has not been
prescribed by the Central Government under section 209(1) (d) of the
Companies Act, 1956 in respect of the activities of the Company.
9. (a) According to the information and explanations given to us,
undisputed statutory dues including Provident Fund, Investor Education
and Protection Fund, Employees State Insurance, Income Tax, Sales tax,
Wealth Tax, Service Tax , Excise duty, Customs Duty, Cess and other
statutory dues have been generally regularly deposited with the
appropriate authorities during the year and there are no undisputed
statutory dues outstanding as on the date of balance sheet for a period
exceeding six months from the date they became payable.
(b) According to the information & explanations given to us, and as per
the books and records examined by us there are no dues of Income Tax,
Sales Tax, Excise Duty, Custom Duty, Wealth Tax, Service Tax and Cess
which have not been deposited on account of any dispute, except the
following along with the forum where dispute is pending:
Name of the Nature of Amount Forum where
Statute the dues (in Rs) dispute is
pending
Income Tax TDS 10770.00 CIT(A)-III,
(2009-2010) Lucknow.
10. The Company has no 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 year.
11. According to the information and explanations given to us, the
Company has not defaulted in repayment of dues to any Financial
Institutions, Banks or Debenture Holders. The Company has old outstan
-ding of Rs.46.07 lacs from City co-operative Bank, Lucknow in
overdraft account against FDRs. The aforesaid Bank has closed down
its operations. The Company has however applied for adjustment of
the outstanding against FDRs. (Refer Note No. 19 of Schedule 15).
12. According to the information and explanations given to us the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures or other securities.
13. The provisions of clause 4(xiii) of the Companies (Auditors
Report) Order, 2003 are not applicable to the Company as the Company is
not a Chit Fund or a Nidhi/Mutual Benefit Fund/Society.
14. The provisions of clause 4(xiv) of the Companies (Auditors
Report) Order, 2003 are not applicable to the Company as the Company is
not dealing in or trading in shares, securities, debentures and other
investments.
15. To the best of our information and explanations given to us, the
Company has not given any guarantee for loans taken by others from bank
or financial institutions.
16. To the best of our information and explanations given to us,
construction term loans have been applied for the purposes for which
they were raised.
17. According to the information and explanations given to us, we
report that no funds raised on short-term basis have been used for
long- term investments.
18. The Company has not made any preferential allotment of shares to
Parties and Companies covered in the register maintained under Section
301 of the Companies Act, 1956.
19. The Company has not issued any debentures during the year.
20. The Company has not raised any money by way of public issue during
the year.
21. During the course of our examination of the books and records of
the Company carried out in accordance with the generally accepted
auditing practices in India we have neither come across any instance of
fraud on or by the Company, noticed and reported during the year, nor
have we been informed of such case by the management.
FOR DOOGAR & ASSOCIATES
Chartered Accountants
(Firm Reg. No-000561N)
(CA UDIT BANSAL)
Partner
M. No. 401642
Place: Lucknow
Dated: 21st August 2010