Mar 31, 2018
INDEPENDENT AUDITORâS REPORT
TO THE MEMBERS OF HB ESTATE DEVELOPERS LIMITED
Report on the Standalone Financial Statements
1. We have audited the accompanying Standalone Financial Statements of HB Estate Developers Limited (âthe Companyâ), which comprise the Balance Sheet as at 31s1 March, 2018, the Statement of Profit and Loss, including the statement of other Comprehensive income, the Cash Flow Statement and the statement of Changes in Equity for the year then ended, and a summary of the significant Accounting Policies and other explanatory information ( hereinafter referred to as â Standalone Financial Statementsâ).
Managementâs Responsibility for the Standalone Financial Statements
2. 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 to give a true and fair view of the financial position, financial performance including other Comprehensive income, cash flows and the Statement of Changes in Equity of the Company in accordance in accordance with the Accounting Principles generally accepted in India, including the Indian Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2015 (as amended). This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone financial Statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorâs Responsibility
3. Our responsibility is to express an opinion on these Standalone Financial Statements based on our audit.
4. We have taken into account the provisions of the Act and the Rules made there under including the Accounting Standards and matters which are required to be included in the Audit Report.
5. We conducted our Audit of the Standalone Financial Statements in accordance with the Standards on Auditing specified under Section 143(10) of the Act and other applicable authoritative pronouncements issued by the Institute of Chartered Accountants of India.
Those Standards and pronouncements 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.
6. An Audit involves performing procedures to obtain audit evidence about the amounts and the 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 the Companyâs Directors, as well as evaluating the overall presentation of the Financial Statements.
7. 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
8. 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 31s1 March, 2018, and its loss including other Comprehensive income, its cash flows and the Statement of Changes in Equity for the year ended on that date.
Report on Other Legal and Regulatory Requirements
9. As required by âthe Companies (Auditor''s Report) Order, 2016â, issued by the Central Government of India in terms of sub-section (11) of Section 143 of the Act (hereinafter referred to as the âOrder"â), and on the basis of such checks of the books and records of the Company as we considered appropriate and according to the information and explanations given to us, we give in the âAnnexure Aâ a statement on the matters specified in paragraphs 3 and 4 of the Order.
10. As required by Section 143 (3) of the Act, we report to the extent applicable that:
(a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our Audit;
(b) In our opinion, proper Books of Account as required by law have been kept by the Company so far as it appears from our examination of those books;
(c) The Balance Sheet, the Statement of Profit and Loss including other Comprehensive Income, the Cash Flow Statement and 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 Financial Statements comply with the Indian Accounting Standards specified under Section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;
(e) On the basis of written representation 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) of the Act.
(f) With respect to the adequacy of the Internal Financial Controls over Financial Reporting of the Company and the operating effectiveness of such controls, refer to our separate Report in Annexure B.
(g) 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 knowledge and belief and according to the information and explanations given to us:
i. The Company has disclosed the impact of pending litigations as at 31st March, 2018 on its financial position in its financial statements - Refer Note No 51
ii. The Company did not have any long-term contracts including derivative contracts as at 31st March, 2018
iii. There were no amounts, which were required to be transferred, to the Investor Education and Protection Fund by the Company during the year ended on 31st March, 2018.
Referred to in paragraph 9 of the Independent Auditorsâ Report of even date to the members of HB Estate Developers Limited on the Standalone Financial Statements as of and for the year ended 31s March, 2018
1. a. The Company has maintained proper records showing full particulars including quantitative details and situation of Fixed Assets;
b. As explained to us, the management during the year has physically verified the Fixed Assets in a phased periodical manner, which in our opinion is reasonable, having regard to the size of the Company and nature of its Assets. No material discrepancies were noticed on such physical verification.
c. The title deeds of Immovable Property are held in the name of the Company and the same are lying with the bank in connection with the borrowings made by the Company.
2. As explained to us, Inventories have been physically verified by the management at reasonable intervals during the year. As explained to us the discrepancies noticed on physical verification of inventory as compared to the book records were not material.
3. a. The Company has not granted during the year any loans, secured or unsecured to Companies, Firms, Limited Liability Partnership or other parties covered in the Register maintained under section 189 of the Companies Act, 2013 (âthe Actâ). However, in respect of one Company, the outstanding recoverable as at the beginning of the year was Rs.1,41,96,182/- (Including interest receivable) and the maximum amount outstanding at any time during the year and yearend balance is Rs. 1,41,96,182/- including interest receivable.
4. In our opinion and according to the information and explanations given to us, the Company has complied with the provision of section 185 and 186 of the Act, as applicable to it, with respect to the Loans and Investment made, to the extent applicable to the Company. As per the information and explanation given to us, the Company has not given any Guarantee or provided any Security in connection with a Loan to any other body corporate or person.
5. The Company has not accepted any Deposits from the Public.
6. The nature of the Companyâs Business/Activities is such that maintenance of Cost Records under Section 148(1) of the Act is not applicable to the company.
7. a. According to the records of the Company, undisputed statutory dues including
Provident Fund, Employeesâ State Insurance, Income Tax, Sales-Tax, Service Tax, Goods & Service Tax, Customs Duty, Excise Duty, Value added tax, Cess and other statutory dues to the extent and as applicable to the Company have been generally regularly deposited by the Company during the year with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March, 2018 for a period of more than six months from the date of becoming payable.
b. According to the records of the Company, the disputed statutory dues that have not been deposited on account of the matters pending before appropriate authorities as on 31st March, 2018 are as under:-
(i) Property tax demand of '' 68,02,674/- against which the company had filed Writ Petition before Honâble Delhi High Court and the company had been granted stay by the Honâble Court from the payment of said amount and the Honâble Court has directed the MCD to recomputed the tax (refer note no.44.(i))
(ii) Vacant Land tax demand of '' 2,28,616/- which is being contested by Company in Delhi High Court. (refer note no.44.(i))
(iii) Ground Rent as explained in note no.44(ii)
(iv) VAT/Sales tax demand of '' 16,17,09,502/- in note no. 44(i)
8. In our opinion and according to the information and explanation given to us, the Company has not defaulted in repayment of loans/borrowings from bank/ financial institution. There are no loans or borrowings taken by the Company from government or debenture holders during the year.
9. The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) during the year. The term loans were applied for the purpose for which those were raised.
10. In our opinion and according to the information and explanation given to us, no fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
11. According to the information and explanations given to us and based on our examination of the record of the Company, the Company has not paid any managerial remuneration during the year.
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 or examinations 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 transaction 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 record 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 record of the Company, the Company has not entered into 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.
Referred to in paragraph 10(f) of the Independent Auditorsâ Report of even date to the members of HB Estate Developers Limited on the Standalone Financial Statements for the year ended 31st March, 2018
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Act
1. We have audited the internal financial controls over financial reporting of HB Estate Developers Limited (âthe Companyâ) as of 31st March, 2018 in conjunction with our audit of the Standalone Financial Statements of the Company for the year ended on that date.
Managementâs Responsibility for Internal Financial Controls
2. The Companyâs management is responsible for establishing and maintaining internal Financial Controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India (ICAI). These responsibilities include the design, implementation and maintenance of adequate Internal Financial Controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to companyâs policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act.
Auditorsâ Responsibility
3. Our responsibility is to express an opinion on the Companyâs Internal Financial Controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the âGuidance Noteâ) and the Standards on Auditing deemed to be prescribed under section 143(10) of the Act to the extent applicable to an audit of internal financial controls, both applicable to an audit of internal financial controls and both issued by the ICAI. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.
4. 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
5. 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
6. A companyâs internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A companyâs internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companyâs assets that could have a material effect on the Financial Statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
7. 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
8. 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 G. C. AGARWAL & ASSOCIATES
Chartered Accountants
Firm Registration No.: 017851N
Sd/-
(G C AGARWAL)
PLACE : Gurugram Proprietor
DATED : 29/05/2018 (Membership No. 083820)
Mar 31, 2015
We have audited the accompanying financial statements of HB ESTATE
DEVELOPERS LIMITED ("the Company"), which comprises the Balance Sheet
as at March 31,2015, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation and presentation of these financial statements that
give a true and fair view of the financial position, financial
performance and cash flows of the Company in accordance with the
accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes 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 financial
statements based on our audit. We have taken into account the
provisions of the Act, the accounting and auditing standards and
matters which are required to be included in the audit report under the
provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the 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 controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on the financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India of the state of affairs of the Company as
at 31st March 2015 and its loss 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, 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 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 the written representations received from the
directors as on 31 March 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March 2015
from being appointed as a director in terms of Section 164 (2) of the
Act;
f) with respect to the other matters to be included in the Auditor's
Report in accordance with 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 litigation on the
financial position in its financial Statements -Refer Note 29.10 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 Independent Auditors' Report
The annexure referred to in our report to the members of the company on
the financial
statements for the year ended on 31st March, 2015, we Report that:
1. a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets on the
basis of available information.
b. As explained to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner, which
in our opinion is reasonable, having regard to the size of the company
and nature of its assets. No material discrepancies were noticed on
such physical verification
2. a. As explained to us, inventories have been physically verified by
the management at reasonable intervals during the year.
b. In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. The Company has maintained proper records of inventories. As
explained to us, no material discrepancies have been noticed on
physical verification of inventory as compared to the book records.
3. a. The company has not granted any loans, secured or unsecured to
companies, firms or other parties covered in the Register maintained
under section 189 of the Companies Act, 2013 ('the Act'). However, in
respect of one party, the outstanding recoverable as at the beginning of
the year was Rs. 1,08,94,884/-(Including interest receivable) and the
maximum amount outstanding at any time during the year and year end
balance is Rs. 1,08,94,884/-including interest receivable.
b. The principal amount and interest wherever applicable thereon in
respect of such loan is being recovered as stipulated.
c. As explained to us, In respect of aforesaid advance given by the
Company, there are no overdue amount
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchases of inventory and fixed assets and sale of goods and services.
During the course of our audit, we have not observed any major weakness
in the internal control system.
5. The Company has not accepted any deposits from the public.
6. The nature of the company's business/activities is such that
maintenance of Cost Records under section 148(1) of the Act is not
applicable to the company.
7. a. According to the records of the Company, undisputed statutory dues
including Provident Fund, Employees' State Insurance, Income Tax,
Sales-Tax,Value added tax Wealth Tax, Customs Duty, Excise Duty, Service
tax, Cess and other statutory dues to the extent and as applicable to
the company have been generally regularly deposited by the company
during the year with the appropriate authorities. According to the
information and explanations given to us, no undisputed amounts payable
in respect of the aforesaid dues were outstanding as at 31st March, 2015
for a period of more than six months from the date of becoming payable.
b. According to the records of the company, the disputed statutory dues
that have not been deposited on account of the matters pending before
appropriate authorities as on 31st March,2015 are as under:-
(i) property tax demand of Rs. 67,36,724/- against which the company
had filed Writ Petition before Hon'ble Delhi High Court and the company
had been granted stay by the Hon'ble Court from the payment of said
amount and the hon'ble court has directed the MCD to recompute the tax
(refer note no.29.2(a)
(ii) Income tax demand of Rs. 9,43,640/- for which the company is in
Appeal before Commissioner of Income Tax (Appeal);
(iii) Ground Rent as explained in note no. 29.2(c)
c. In our opinion and according to the information and explanations
given to us, there has been no delay in transferring amounts, required
to be transferred, to the Investor Education and Protection Fund by the
Company in accordance with the relevant provisions of the Companies
Act, 1956 (1 of 1956) and rules made thereunder.
8. The accumulated losses of the company are not more than fifty
percent of its net worth. The Company has incurred cash losses during
the financial year covered by our audit and also incurred cash losses
in the immediately preceding financial year.
9. Based on our audit procedures and according to the information and
explanation given to us, we are of the opinion that the Company has not
defaulted in repayment of dues to financial institutions, banks or
debenture holders during the year.
10. According to the information and explanations given to us, as at
the year end the Company has not given any guarantee for loans taken by
others from banks or financial institutions.
11. On the basis of review of utilisation of funds pertaining to term
loans on and overall basis and related information and explanation made
available to us, the term loans taken by the company have been utilised
for the purpose for which they were taken.
12. In our opinion and according to the information and explanation
given to us, no fraud on or by the Company has been noticed or reported
during the course of audit.
For P. BHOLUSARIA & CO.
Chartered Accountants
Firm Registration No. 000468N
AMIT GOEL
Place : Gurgaon PARTNER
Date : 30.05.2015 (Membership No. 092648)
Mar 31, 2014
Report on the Financial Statements
We have audited the accompanying financial statements of HB ESTATE
DEVELOPERS LIMITED ("the Company"), which comprise the Balance Sheet as
at March 31, 2014, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting Principles generally accepted in India including
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 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 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 aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
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 loss 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 read with the
general circular 15/2013 dated 13th September, 2013 of the Ministry of
Corporate Affairs in respect of Section 133 of the companies Act, 2013;
e) on the basis of written representations received from the directors
as on March 31,2014, 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.
Annexure to Independent Auditors'' Report
Re: HB Estate Developers Ltd.
Referred to in Paragraph 1 under the heading of "Report on other legal
and Regulatory Requirements" of our report of even date 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. As explained to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner, which
in our opinion is reasonable, having regard to the size of the company
and nature of its assets. No material discrepancies were noticed on
such physical verification.
c. In our opinion, the Company has not disposed of substantial part of
fixed assets during the year that would affect going concern status of
the Company.
2. a. As explained to us, inventories have been physically verified by
the management at reasonable intervals during the year.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. The Company has maintained proper records of inventories. As
explained to us, no material discrepancies have been noticed on
physical verification of inventory as compared to the book records.
3. In respect of the loans, secured or unsecured, granted/taken by the
company to/from companies, firms or other parties covered in the
Register maintained u/s 301 of the Companies Act, 1956, according to
the information and explanations given to us:
(i) (a) During the Year, the company has not granted any loan, secured
or unsecured to any company, firm or other party listed in the register
maintained u/s 301 of the Companies Act,1956. However, in respect of
one party, the outstanding recoverable as at the beginning of the year
was Rs. 1,08,94,884/-(Including interest receivable) and the maximum
amount outstanding at any time during the year and year end balance is
Rs. 1,08,94,884/-including interest receivable.
(b) In our opinion and according to the information and explanations
given to us the rate of interest and terms and conditions of loans
given to the company listed in the register maintained under Section
301 is not prima- facie prejudicial to the interest of the Company.
(c) The principal amount and interest wherever applicable thereon in
respect of such loan is being recovered as stipulated.
(ii) (a) The Company had taken loan aggregating to Rs. 9,00,00,000/-
in earlier years from one Company covered in the register maintained
under section 301 of the Companies Act, 1956 and the maximum amount
involved during the year and the year end balances of the loan taken
from such company was Rs. 9,00,00,000/-.
(b) The rate of interest and other terms and conditions of such loans
are, in our opinion, prima facie not prejudicial to the interests of
the company.
(c) The payment of principal amounts and interest in respect of such
loans are regular/ as per stipulations.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchases of inventory and fixed assets and sale of goods & services.
During the course of our audit, we have neither come across nor we have
been informed of any instance of major weakness in the aforesaid
internal control system.
5. a. In our opinion and according to the information and explanations
given to us,the particulars of contracts or arrangements referred to in
section 301 of the Companies Act, 1956 have been entered into in the
register required to be maintained under that section.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to the market price prevailing at the relevant time.
6. The Company has not accepted any deposits from the public.
7. In our opinion the internal audit system of the Company is
commensurate with its size and nature of its business.
8. The nature of the company''s business/activities is such that Clause
4(viii) of the Companies (Auditor''s Report) Order 2003 regarding
maintenance of Cost Records is not applicable to the company.
9 a. According to the records of the Company and according to the
information and explanation given to us, undisputed statutory dues
including Provident Fund, Income Tax, Wealth Tax, Service Tax, Excise
duty, Custom duty , Cess and other material statutory dues as
applicable have been generally regularly deposited by the company
during the period with the appropriate authorities. No undisputed
amounts payable in respect of the aforesaid dues were outstanding as at
31st march, 2014 for a period of more than six months from the date of
becoming payable.
b. According to the records of the company, the disputed statutory dues
that have not been deposited on account of the matters pending before
appropriate authorities as on 31st March, 2014 are as under:-
(i) property tax demand of Rs. 67,36,724/- against which the company
had filed Writ Petition before Hon''ble Delhi High Court and the company
had been granted stay by the Hon''ble Court from the payment of said
amount and the hon''ble court has directed the MCD to recompute the tax
(refer note no.29.2(a)
(ii) Income tax demand of Rs. 8,93,376/- (Rs. 5,59,190/- for
A.Y.2010-11 and Rs. 3,34,186/ - for A.Y.2011-12) for which the company
is in Appeal before Commissioner of Income Tax (Appeal);
(iii) Ground Rent as explained in note no.29.2(d)
10. The accumulated losses of the company are not more than fifty
percent of its net worth. The Company has incurred cash losses during
the financial year covered by our audit and also incurred cash losses
in the immediately preceding financial year.
11. Based on our audit procedures and according to the information and
explanation given to us, we are of the opinion that the Company has not
defaulted in repayment of dues to financial institutions, banks or
debenture holders.
12. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, clause 4(xiii) of the Companies
(Auditor''s Report) order 2003 is not applicable to the company.
14. The Company is neither dealing nor trading in shares, securities,
debentures and other investments therefore clause 4(xiv) of the
Companies (Auditor''s Report) order 2003 is not applicable to the
company. In respect of Investments in shares the company has maintained
proper records of transactions and contracts in respect thereto and
timely entries have been made therein. All shares and securities have
been held by the Company in its own name.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. On the basis of review of utilisation of funds pertaining to term
loans on and overall basis and related information and explanation made
available to us, the term loans taken by the company have been utilised
for the purpose for which they were taken.
17. Based on the information and explanations given to us and on an
overall examination of the balance sheet of the company, we report that
during the year, fund raised on short- term basis have not been used
for long-term investment by the company.
18. During the year, 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. No debentures have been issued by the company and hence the
question of creating securities or charge in respect thereof does not
arise.
20. The Company has not raised any money by way of public issue during
the year.
21. In our opinion and according to the information and explanation
given to us, no fraud on or by the Company has been noticed or reported
during the year.
For P. BHOLUSARIA & CO.
Chartered Accountants
Firm Registration No. 000468N
AMIT GOEL
Place : Gurgaon PARTNER
Date : 24.05.2014 (Membership No. 092648)
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statements of HB ESTATE
DEVELOPERS LIMITED ("the Company"), which comprise the Balance Sheet as
at March 31, 2013, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the accounting Principles generally accepted in India including
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 aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
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 loss 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, 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.
Annexure to Independent Auditors'' Report
Re: HB Estate Developers Ltd.
Referred to in Paragraph 1 under the heading of "Report on other legal
and Regulatory Requirements" of our report of even date for the year
ended 31st March 2013.
1. a. The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b. As explained to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner, which
in our opinion is reasonable, having regard to the size of the company
and nature of its assets. No material discrepancies were noticed on
such physical verification.
c. In our opinion, the Company has not disposed of substantial part of
fixed assets during the year that would affect going concern status of
the Company.
2. a. As explained to us, inventories have been physically verified
by the management at reasonable intervals during the year.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. The Company has maintained proper records of inventories. As
explained to us, no material discrepancies have been noticed on
physical verification of inventory as compared to the book records.
3. In respect of the loans, secured or unsecured, granted/taken by the
company to/from companies, firms or other parties covered in the
Register maintained u/s 301 of the Companies Act, 1956, according to
the information and explanations given to us:
(i) (a) During the Year, the company has not granted any loan, secured
or unsecured to any company, firm or other party listed in the register
maintained u/s 301 of the Companies Act,1956. However, during the year,
consequent upon the wound up of an AOP (as explained in note no. 29.5),
the investments made there under amounting to Rs. 35,32,13,269/- were
transferred to and vested in the company taking over the projects of
AOP. Out of the said amount, amount to the extend of Rs. 35,00,00,000/-
has been refunded back. The Maximum amount involved during the year is
Rs. 35,32,13,269/- and the year end balance was Rs. 1,08,94,883/- including
interest receivable.
(b) In our opinion and according to the information and explanations
given to us the rate of interest and terms and conditions of loans
given to the company listed in the register maintained under Section
301 is not prima-facie prejudicial to the interest of the Company.
(c) The principal amount and interest wherever applicable thereon in
respect of such loan is being recovered as stipulated.
(ii) (a) The Company had taken loan aggregating to Rs. 9,00,00,000/- in
earlier years from one Company covered in the register maintained under
section 301 of the Companies Act, 1956 and the maximum amount involved
during the year and the year end balances of the loan taken from such
company was Rs. 9,00,00,000/-.
(b) The rate of interest and other terms and conditions of such loans
are, in our opinion, prima facie not prejudicial to the interests of
the company.
(c) The payment of principal amounts and interest in respect of such
loans are regular/as per stipulations.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchases of inventory and fixed assets and sale of goods & services.
During the course of our audit, we have neither come across nor we have
been informed of any instance of major weakness in the aforesaid
internal control system.
5. a. In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to in section 301 of the Companies Act, 1956 have been entered
into in the register required to be maintained under that section. b.
In our opinion and according to the information and explanations given
to us, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to the market price prevailing at the relevant time.
6. The Company has not accepted any deposits from the public.
7. In our opinion the internal audit system of the Company is
commensurate with its size and nature of its business.
8. The nature of the company''s business/activities is such that Clause
4(viii) of the Companies (Auditor''s Report) Order 2003 regarding
maintenance of Cost Records is not applicable to the company.
9 a. According to the records of the Company and according to the
information and explanation given to us, undisputed statutory dues
including Provident Fund, Income Tax, Wealth Tax, Service Tax, Excise
duty, Custom duty, Cess and other material statutory dues as applicable
have been generally regularly deposited by the company during the
period with the appropriate authorities. No undisputed amounts payable
in respect of the aforesaid dues were outstanding as at 31st March 2013
for a period of more than six months from the date of becoming payable.
b. According to the records of the company, the disputed statutory dues
that have not been deposited on account of the matters pending before
appropriate authorities as on 31st March 2013 are as under:-
(i) property tax demand of Rs. 67,36,724/- against which the company had
filed Writ Petition before Hon''ble Delhi High Court and the company had
been granted stay by the Hon''ble Court from the payment of said amount
and the Hon''ble court has directed the MCD to recompute the tax (refer
note no.29.2(a)
(ii) Income tax demand of Rs. 5,59,190/- for A.Y.2010-11 for which the
company is in Appeal before Commissioner of Income Tax (Appeal);
(iii) Ground Rent as explained in note no.29.2(d)
10. The company has no accumulated losses at the end of financial
year. The Company has incurred cash losses during the financial year
covered by our audit but not incurred cash losses in the immediately
preceding financial year.
11. Based on our audit procedures and according to the information and
explanation given to us, we are of the opinion that the Company has not
defaulted in repayment of dues to financial institutions, banks or
debenture holders.
12. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, clause 4(xiii) of the Companies
(Auditor''s Report) order 2003 is not applicable to the company.
14. The Company is neither dealing nor trading in shares, securities,
debentures and other investments therefore clause 4(xiv) of the
Companies (Auditor''s Report) order 2003 is not applicable to the
company. In respect of Investments in shares the company has maintained
proper records of transactions and contracts in respect thereto and
timely entries have been made therein. All shares and securities have
been held by the Company in its own name.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. On the basis of review of utilisation of funds pertaining to term
loans on and overall basis and related information and explanation made
available to us, the term loans taken by the company have been utilised
for the purpose for which they were taken.
17. Based on the information and explanations given to us and on an
overall examination of the balance sheet of the company, we report that
during the year, fund raised on short- term basis have not been used
for long-term investment by the company.
18. During the year, 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. No debentures have been issued by the company and hence the
question of creating securities or charge in respect thereof does not
arise.
20. The Company has not raised any money by way of public issue during
the year.
21. In our opinion and according to the information and explanation
given to us, no fraud on or by the Company has been noticed or reported
during the year.
For P. BHOLUSARIA & CO.
Chartered Accountants
Firm Registration No. 000468N
AMIT GOEL
Place :Gurgaon PARTNER
Date :30.05.2013 (Membership No. 092648)
Mar 31, 2012
We have audited the attached Balance Sheet of M/s. HB ESTATE DEVELOPERS
LIMITED as at 31st March 2012, 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.
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 from material misstatements. An audit also includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statement presentation. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
1. As required by Companies (Auditor's Report) Order, 2003 issued by
the Central Government of India in terms of section 227 (4A) of the
Companies Act, 1956, we annex hereto a statement on the matters
specified in paragraphs 4 and 5 of the said order to the extent
applicable.
2. Further to our comments in the Annexure referred to in paragraph 1
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 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 the said
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 & Loss and
Cash Flow Statement comply with the accounting Standards referred to in
Sub Section (3C) of section 211 of the Companies Act, 1956;
e) As informed and explained to us, none of the directors of the
company is disqualified as on 31st March, 2012 from being appointed as
director in terms of clause (g) ol sub-section (1) of Section 274 of
the Companies Act, 1956;
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
significant accounting policies and notes thereon (Particularly Note
No.24(d) and Note No.29(d)) 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 the Balance Sheet of the State of Affairs of the
Company as at 31st March, 2012 and
b) In the case of the Statement of Profit & Loss of the Profit for the
year ended on that date and
c) In the case of Cash Flow Statement, of the Cash Flows for the year
ended on that date.
Annexure to Auditors' Report
Re: HB Estate Developers Ltd.
Referred to in Paragraph 1 of our report of even date
1. a. The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b. As explained to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner, which
in our opinion is reasonable, having regard to the size of the company
and nature of its assets. No material discrepancies were noticed on
such physical verification
c. In our opinion, the Company has not disposed of substantial part of
fixed assets during the year that would affect going concern status of
the Company.
2. a. As explained to us, inventories have been physically verified by
the management at reasonable intervals during the year.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. The Company has maintained proper records of inventories. As
explained to us, no material discrepancies have been noticed on
physical verification of inventory as compared to the book records.
3. In respect of the loans, secured or unsecured, granted/taken by the
company to/from companies, firms or other parties covered in the
Register maintained u/s 301 of the Companies Act, 1956, according to
the information and explanations given to us:
(i) The company has not granted any loans, secured or unsecured during
the year to the companies, firm or other parties covered in the
register mentioned u/s 301 ol the Companies Act 1956.
(ii) (a) The Company had taken loan aggregating to Rs. 9,00,00,000/- in
earlier years from one Company covered in the register maintained under
section 301 of the Companies Act ,1956 and the maximum amount involved
during the year and the year end balances of the loan taken from such
company was Rs. 9,00,00,000/-.
(b) The rate of interest and other terms and conditions of such loans
are, in our opinion, prima facie not prejudicial to the interests of
the company.
(c) The payment of principal amounts and interest in respect of such
loans are regular/ as per stipulations.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchases of inventory and fixed assets and sale of goods & services.
During the course of our audit, we have neither come across nor we have
been informed of any instance of major weakness in the aforesaid
internal control system.
5. a. In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in section 301 of the Companies Act, 1956 have been entered into in the
register required to be maintained under that section.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to the market price prevailing at the relevant time..
6. The Company has not accepted any deposits from the public.
7. In our opinion the internal audit system of the Company is
commensurate with its size and nature of its business.
8. The nature of the company's business/activities is such that
Clause 4(viii) of the Companies (Auditor's Report) Order 2003
regarding maintenance of Cost Records is not applicable to the company.
9 a. According to the records of the Company and according to the
information and explanation given to us, undisputed statutory dues
including Provident Fund, Income Tax, Wealth Tax, Service Tax, Excise
duty, Custom duty , Cess and other material statutory dues as
applicable have been generally regularly deposited by the company
during the period with the appropriate authorities except for non
deposit of instalments of advance tax. No undisputed amounts payable in
respect of the aforesaid dues were outstanding as at 31st March 2012
for a period of more than six months from the date of becoming payable
except for non deposit of advance tax instalments of Rs. 67,00,000/-for
June & September, 2011 quarters. b. According to the records of the
company, the disputed statutory dues that have not been deposited on
account of the matters pending before appropriate authorities as on
31st March,2012 are as under:-
(i) property tax demand of Rs. 67,36,724/- against which the company had
filed Writ Petition before Hon'ble Delhi High Court and the company
had been granted stay by the Hon'ble Court from the payment of said
amount and the hon'ble court has directed the MCD to recompute the
tax (refer note no.24(a))
(ii) Income tax demand of Rs. 94,816 for A.Y.2006-07, Rs. 8,55,290/- for
A.Y.2007- 08, Rs. 5,69,528/- for A.Y.2008-09 and Rs. 3,18,90,234/- for A.Y.
2009-10 for which the company is in Appeal before Commissioner of
Income Tax ( Appeal);
(iii) Ground Rent as explained in note no.24(d)
10. The company has no accumulated losses at the end of financial year
and it has not incurred cash losses during the financial year covered
by our audit or in the immediately preceding financial year.
11. Based on our audit procedures and according to the information and
explanation given to us, we are of the opinion that the Company has not
defaulted in repayment of dues to financial institutions, banks or
debenture holders.
12. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, clause 4(xiii) of the Companies
(Auditor's Report) order 2003 is not applicable to the company.
14. The Company is neither dealing nor trading in shares, securities,
debentures and other investments therefore clause 4(xiv) of the
Companies (Auditor's Report) order 2003 is not applicable to the
company. In respect of Investments in shares the company has maintained
proper records of transactions and contracts in respect thereto and
timely entries have been made therein. All shares and securities have
been held by the Company in its own name.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. On the basis of review of utilisation of funds pertaining to term
loans on and overall basis and related information and explanation made
available to us, the term loans taken by the company have been utilised
for the purpose for which they were taken.
17. According to the information and explanations given to us, we are
of the opinion that loans amounting to Rs. 25,99,49,066/- in the nature
of overdraft facility have prima facie been used for long term
investment purposes. i.e. for deployment for capital work in progress.
18. During the year, 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. No debentures have been issued by the company and hence the
question of creating securities or charge in respect thereof does not
arise.
20. The Company has not raised any money by way of public issue during
the year.
21. In our opinion and according to the information and explanation
given to us, no fraud on or by the Company has been noticed or reported
during the year.
For P. BHOLUSARIA & CO.
Chartered Accountants
Firm Registration No. 000468N
AMIT GOEL
Place : Gurgaon PARTNER
Date : 25.05.2012 (Membership No. 092648)
Mar 31, 2011
We have audited the attached Balance Sheet of M/s. HB ESTATE DEVELOPERS
LIMITED as at 31st March, 2011 and also the Profit and Loss Account 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.
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 from material misstatements. An audit also includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statement presentation. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
1. As required by Companies (Auditor's Report) Order, 2003(as amended)
issued by the Central Government of India in terms of section 227 (4A)
of the Companies Act, 1956, we annex hereto a statement on the matters
specified in paragraphs 4 and 5 of the said order to the extent
applicable.
2. Further to our comments in the Annexure referred to in paragraph 1
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 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 the said
books;
c) The Balance Sheet, 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 & Loss Account and Cash
Flow Statement comply with the accounting Standards referred to in Sub
Section (3C) of section 211 of the Companies Act, 1956.
e) As informed and explained to us, none of the directors of the
company is disqualified as on 31st March, 2011 from being appointed as
director in terms of clause (g) of sub-section (1) of Section 274 of
the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
significant accounting policies and notes thereon (Particularly Note
No.3 and Note No.17(d) ) 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 the Balance Sheet of the State of Affairs of the
Company as at 31st March, 2011 and
b) In the case of the Profit & Loss account of the Profit for the year
ended on that date and
c) In the case of Cash Flow Statement, of the Cash Flow for the year
ended on that date.
Annexure to Auditors' Report Re: HB Estate Developers Ltd.
Referred to in Paragraph 1 of our report of even date
1. a. The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b. As explained to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner, which
in our opinion is reasonable, having regard to the size of the company
and nature of its assets. No material discrepancies were noticed on
such physical verification
c. In our opinion, the Company has not disposed of substantial part of
fixed assets during the year that would affect going concern status of
the Company.
2. a. As explained to us, inventories have been physically verified
by the management at reasonable intervals during the year.
b. In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. The Company has maintained proper records of inventories. As
explained to us, no material discrepancies have been noticed on
physical verification of inventory as compared to the book records.
3. In respect of the loans, secured or unsecured, granted/taken by the
company to/from companies, firms or other parties covered in the
Register maintained u/s 301 of the Companies Act, 1956, according to
the information and explanations given to us:
(i) The company has not granted any loans, secured or unsecured during
the year to the companies, firm or other parties covered in the
register mentioned u/s 301 of the Companies Act 1956.
(ii) (a) The Company had taken loan aggregating to Rs 9,00,00,000/- in
earlier years from one Company covered in the register maintained under
section 301 of the Companies Act ,1956 and the maximum amount involved
during the year and the year end balances of the loan taken from such
company was Rs 9,00,00,000/-.
(b) The rate of interest and other terms and conditions of such loans
are, in our opinion, prima facie not prejudicial to the interests of
the company.
(c) The payment of principal amounts and interest in respect of such
loans are regular/ as per stipulations.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchases of inventory and fixed assets and sale of goods & services.
During the course of our audit, we have neither come across nor we have
been informed of any instance of major weakness in the aforesaid
internal control system.
5. a. In our opinion and according to the information and
explanations given to us, the particulars of contracts or arrangements
referred to in section 301 of the Companies Act, 1956 have been entered
into in the register required to be maintained under that section.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to the market price prevailing at the relevant time..
6. The Company has not accepted any deposits from the public.
7. In our opinion the internal audit system of the Company is
commensurate with its size and nature of its business.
8. The nature of the company's business/activities is such that Clause
4(viii) of the Companies (Auditor's Report) Order 2003 regarding
maintenance of Cost Records is not applicable to the company.
9 a. According to the records of the Company and according to the
information and explanation given to us, undisputed statutory dues
including Provident Fund, Income Tax, Wealth Tax, Service Tax, Excise
duty, Custom duty , Cess and other material statutory dues as
applicable have been generally regularly deposited by the company
during the period with the appropriate authorities except for non
deposit of instalments of advance tax. No undisputed amounts payable in
respect of the aforesaid dues were outstanding as at 31st march, 2011
for a period of more than six months from the date of becoming payable
except for non deposit of advance tax instalments of Rs 26,00,000/-for
June & September,2010 quarters.
b. According to the records of the company, the disputed statutory
dues that have not been deposited on account of the matters pending
before appropriate authorities as on 31st March,2011 are as under:-
(i) property tax demand of Rs.67,36,724/- against which the company had
filed Writ Petition before Hon'ble Delhi High Court and the company had
been granted stay by the Hon'ble Court from the payment of said amount
and the hon'ble court has directed the MCD to recompute the tax (refer
note no.2(a) of Schedule 11).,
(ii) Income tax demand of Rs.94,816 for A.Y.2006-07, Rs.8,55,290/- for
A.Y.2007- 08 and Rs.5,69,528/- for A.Y.2008-09 for which the company is
in Appeal before Commissioner of Income Tax ( Appeal);
(iii) Ground Rent as explained in note no.3 of schedule 11.
10. The company has no accumulated losses at the end of financial year
and it has not incurred cash losses during the financial year covered
by our audit or in the immediately preceding financial year.
11. Based on our audit procedures and according to the information and
explanation given to us, we are of the opinion that the Company has not
defaulted in repayment of dues to financial institutions, banks or
debenture holders.
12. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, clause 4(xiii) of the Companies
(Auditor's Report) order 2003 is not applicable to the company.
14. The Company is neither dealing nor trading in shares, securities,
debentures and other investments therefore clause 4(xiv) of the
Companies (Auditor's Report) order 2003 is not applicable to the
company In respect of Investments in shares the company has maintained
proper records of transactions and contracts in respect thereto and
timely entries have been made therein. All shares and securities have
been held by the Company in its own name.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. On the basis of review of utilisation of funds pertaining to term
loans on and overall basis and related information and explanation made
available to us, the term loans taken by the company have been utilised
for the purpose for which they were taken.
17. According to the information and explanations given to us, we are
of the opinion that loans amounting to Rs.22.92 crores in the nature of
overdraft facility have prima facie been used for long term investment
purposes. i.e. for deployment for capital work in progress in the
earlier years..
18. During the year, 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. No debentures have been issued by the company and hence the
question of creating securities or charge in respect thereof does not
arise.
20. The Company has not raised any money by way of public issue during
the year.
21. In our opinion and according to the information and explanation
given to us, no fraud on or by the Company has been noticed or reported
during the year.
For P. BHOLUSARIA & CO.
Chartered Accountants
Firm Registration No. 000468N
AMIT GOEL
PARTNER
(M. No. 92648)
Place : Gurgaon
Date : 19.05.2011
Mar 31, 2010
We have audited the attached Balance Sheet of M/s. HB ESTATE DEVELOPERS
LIMITED as at 31st March, 2010 and also the Profit and Loss Account and
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.
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 from material misstatements. An audit also includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statement presentation. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
1. As required by Companies (Auditors Report) Order, 2003(as amended)
issued by the Central Government of India in terms of section 227 (4A)
of the Companies Act, 1956, we annex hereto a statement on the matters
specified in paragraphs 4 and 5 of the said order to the extent
applicable.
2. Further to our comments in the Annexure referred to in paragraph 1
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 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 the said
books;
c) The Balance Sheet, 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 & Loss Account and Cash
Flow Statement comply with the accounting Standards referred to in Sub
Section (3C) of section 211 of the Companies Act, 1956.
e) As informed and explained to us, none of the directors of the
company is disqualified as on 31st March, 2010 from being appointed as
director in terms of clause (g) of sub-section (1) of Section 274 of
the Companies Act, 1956.
f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts read together with
significant accounting policies and notes thereon (Particularly Note
No.3 and Note No.21) 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 the Balance Sheet of the State of Affairs of the
Company as at 31st March, 2010 and
b) In the case of the Profit & Loss account of the Profit for the year
ended on that date and
c) In the case of Cash Flow Statement, of the Cash Flow for the year
ended on that date.
Annexure to Auditors Report
Re: HB Estate Developers Ltd.
Referred to in Paragraph 1 of our report of even date
1. a. The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
b. As explained to us, the fixed assets have been physically verified
by the management during the year in a phased periodical manner, which
in our opinion is reasonable, having regard to the size of the company
and nature of its assets. No material discrepancies were noticed on
such physical verification
c. In our opinion, the Company has not disposed of substantial part of
fixed assets during the year that would affect going concern status of
the Company.
2. a. As explained to us, inventories have been physically verified
by the management at reasonable intervals during the year.
b. In our opinion and according to the information and explanations
given to us, the procedure of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
c. The Company has maintained proper records of inventories. As
explained to us, no material discrepancies have been noticed on
physical verification of inventory as compared to the book records.
3. In respect of the loans, secured or unsecured, granted/taken by the
company to/from companies, firms or other parties covered in the
Register maintained u/s 301 of the Companies Act, 1956, according to
the information and explanations given to us:
(i) The company has not granted any loans, secured or unsecured during
the year to the companies, firm or other parties covered in the
register mentioned u/s 301 of the Companies Act 1956.
(ii) (a) The Company had taken loan aggregating to Rs 9,00,00,000/- in
earlier years from one Company covered in the register maintained under
section 301 of the Companies Act ,1956 and the maximum amount involved
during the year and the year end balances of the loan taken from such
company was Rs 9,00,00,000/-.
(b) The rate of interest and other terms and conditions of such loans
are, in our opinion, prima facie not prejudicial to the interests of
the company.
(c) The payment of principal amounts and interest in respect of such
loans are regular/ as per stipulations.
4. In our opinion and according to the information and explanations
given to us, there is an adequate internal control system commensurate
with the size of the Company and the nature of its business for the
purchases of inventory and fixed assets and sale of goods & services.
During the course of our audit, we have neither come across nor we have
been informed of any instance of major weakness in the aforesaid
internal control system.
5 a. In our opinion and according to the information and explanations
given to us, the particulars of contracts or arrangements referred to
in section 301 of the Companies Act, 1956 have been entered into in the
register required to be maintained under that section.
b. In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of such contracts or
arrangements have been made at prices which are reasonable having
regard to the market price prevailing at the relevant time.
6. The Company has not accepted any deposits from the public.
7. In our opinion the internal audit system of the Company is
commensurate with its size and nature of its business.
8. The nature of the companys business/activities is such that Clause
4(viii) of the Companies (Auditors Report) Order 2003 regarding
maintenance of Cost Records is not applicable to the company.
9. a. According to the records of the Company and according to the
information and explanation given to us, undisputed statutory dues
including Provident Fund, Income Tax, Wealth Tax, Service Tax, Excise
duty, Custom duty, Cess and other material statutory dues as applicable
have been generally regularly deposited by the company during the
period with the appropriate authorities except for non deposit of
instalments of advance tax. No undisputed amounts payable in respect of
the aforesaid dues were outstanding as at 31st march, 2010 for a period
of more than six months from the date of becoming payable except for
non deposit of advance tax instalments of Rs.62,66,823/-for June &
September,2009 quarter.. b. According to the records of the company,
there was no disputed statutory dues that have not been deposited on
account of the matters pending before appropriate authorities as on
31st March,2010 except for (i) property tax demand of Rs.67,36,724/-
against which the company had filed Writ Petition before Honble Delhi
High Court and the company had been granted stay by the Honble Court
from the payment of said amount and the honble court has directed the
MCD to recompute the tax (ii) Income tax demand of Rs.8,55,290/- for
A.Y.2007-08 for which the company is in Appeal before Commissioner of
Income Ta x ( Appeal); (iii) Ground Rent as explained in note no.3 of
schedule 11.
10. The company has no accumulated losses at the end of financial year
and it has not incurred cash losses during the financial year covered
by our audit or in the immediately preceding financial year.
11. Based on our audit procedures and according to the information and
explanation given to us, we are of the opinion that the Company has not
defaulted in repayment of dues to financial institutions, banks or
debenture holders.
12. In our opinion and according to the information and explanation
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
13. In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, clause 4(xiii) of the Companies
(Auditors Report) order 2003 is not applicable to the company.
14. The Company is neither dealing nor trading in shares, securities,
debentures and other investments therefore clause 4(xiv) of the
Companies (Auditors Report) order 2003 is not applicable to the
company In respect of Investments in shares the company has maintained
proper records of transactions and contracts in respect thereto and
timely entries have been made therein. All shares and securities have
been held by the Company in its own name.
15. According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from
banks or financial institutions.
16. On the basis of information and explanation given to us, the term
loans taken by the company have been utilised for the purpose for which
they were taken.
17. According to the information and explanations given to us, we are
of the opinion that loans amounting to Rs.23.11 crores in the nature of
overdraft facility have prima facie been used for long term investment
purposes. i.e. for deployment for capital work in progress.
18. During the year, 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. No debentures have been issued by the company and hence the
question of creating securities or charge in respect thereof does not
arise.
20. The Company has not raised any money by way of public issue during
the year.
21. In our opinion and according to the information and explanation
given to us, no fraud on or by the Company has been noticed or reported
during the year.
For P. BHOLUSARIA & CO.
Chartered Accountants
FRN No.000468N
AMIT GOEL
Place :Gurgaon PARTNER
Date :03.08.2010 (M. No. 92648)
Sep 30, 2000
We have audited the attached Balance Sheet of M/s. HB ESTATE DEVELOPERS
LIMITED as at 30th September 2000 and also the Profit and Loss Account
for the year ended on that date annexed thereto and report that :-
1. As required by Manufacturing and Other Companies (Auditors Report)
Order, 1988 issued by the Company Law Board in terms of Section 227
(4A) of the Companies Act,1956, we annex hereto a statement or. the
matters specified in paragraphs 4 and 5 of the said order
2. Further to our comments in the Annexure referred to in paragraph 1
above :-
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 cur examination of the
books;
c) The Balance Sheet and Prof,: and Loss Account dealt with by this
report are in agreement with the books of account;
d) In our opinion, the Profit & Loss Account and Balance Sheet complies
with the accounting standards referred to in sub- section (3C) of
section 211 subject to our remarks given in point (f) below.
e) As informed and explained to us none of the directors is
disqualified from being appointed as director under clause (g) of
sub-section (1) of section 274.
f) in our opinion and to the best of our information and according to
the explanations given to us. the accounts subject to our remarks given
above and (i) Accounting policy no. A1(a) of Schedule 11 relating to
interest on Allotment-Call money in arrears being accounted for by the
company on receipt basis (ii) Accounting policy no. A.1(b) of Schedule
11 relating to interest on delayed payment by customers being accounted
for by the company as and when received (iii) Non provision of bank
interest amounting to Rs. 23,71,242 which is in the opinion of
management is not payable and as a result of which project in progress
as shown in the Balance Sheet is understated to that extent with
corresponding impact on the bank balance and read together with
significant accounting policies and notes on accounts and annexures
thereon give the information required by the Companies Act, 1956 in the
manner so required and give a true and fair view :-
i) In the case of the Balance Sheet of the State of Affairs of the
Company as at 30th September 2000 and
ii) in the case of the Profit and Loss Account of the profit for the
year ended on that oate.
ANNEXURE TO THE REPORT OF THE AUDITORS TO THE MEMBERS OF HB ESTATE
DEVELOPERS LIMITED ON THE ACCOUNTS FOR THE YEAR ENDED 30th SEPTEMBER
2000.
(Refer to in paragraph 1 thereof)
1. the company has maintained proper records showing full particulars
including Quantitative and situation of its Fixed Assets. We have Seen
informed that the assets have been physically verified by the
Management as per verification programme which in our opinion
reasonable and no material discrepancies were noticed on such
verification carried out during the year.
2. None of the Fixed Assets have been revalued curing the year.
3. The procedures followed by the Management for physical verification
of stock are reasonable and adequete, keeping in view fee size of the
Company and the nature of its business.
4. The Company does not have any realizable by-products or scrap.
5. We are informed that there were no unserviceable or damaged stores
materials during the year.
6. The discrepanies noticed by the Management on physical verification
of stock as compared to the book records were not material.
7. The valuation of stocks is fair and proper in accordance with the
normally accepted accounting principles and is on the same basis as in
the preceeding year.
8. Acccording to the information and explanationsgiven to us, the
company has not taken any loans from Companies, firms or other parties
listed in the register maintained under section 301 of the Companies
Act, 1956. In term of section 370 of companies act. provisions of
section 370 are not applicable to the company on or after 31st October
1998.
9. According to the information and explanations given to us, the
company has not granted loans to Companies, firms or other parties
listed in the register maintained under section 301 of the Companies
Act, 1956. In term of section 370 of Companies act, provisions of
section 370 are not applicable to the Company on or after 31st October,
1993.
10. Loans and Advances to employees are interest free from whom
Instalments, wherever stipulated are being generally recovered.
Advances have also been granted to various partes, interest free,
wihout any stipulation as to recovery.
11. In our opinion and according to the information and explanations
given to us, there are adequete internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of stores, building materials and other
assets and for sale of goods.
12. The company has not entered into transactions for sate and
purchase of goods with firms/companies listed in the register
maintained under section 301 of the Companies Act, 1956 aggregating to
more than Rs. 50.000/- during the year.
13. The company has not accepted any deposit from the public during
the year.
14.In our opinion, the company has an intenal audit system commensurate
with the size of the company and the nature of its business, but it
needs further strengthening.
15. According to the records of the company. Provident Fund dues has
been deposited regularly with the appropriate authorities during the
year.
16. According to the information and explanations given to us, no
undisputed amount payable in respect of Income Tax, Wealth Tax, Sales
Tax. Custom Duty and Excise Duty as at 30th September, 2000 for a
period of more than six months from the date they become payable.
17. According to the information and explanations given to us, no
personal expenses of employees or Directors have been changed to
revenue account other than those payable under contractual obligations
or in accordance with generally accepted business practice nor have we
been informed of any such expenses by the management-
18. The company has not yet started any activity to where the question
of allocation of man hours to the relative jobs would arise.
Consequently, the authorisation and control on the allocation of labour
to jobs is also not applicable.
19. in respect of its investments in shares/units, the company has
maintained proper records of the transactions and timely entries have
been made. All the investments are held by the company in its own name.
20. The requirement regarding maintenance of Cost-records is not
applicable to the company.
21. The Sick industrial Companies (Special Provision) Act, 1985 is not
applicable to the company.
for P. BHOLUSARIA & COMPANY
Chartered Accountants
(AMIT GOEL)
Partner
Place : New Delhi
Dated : 29th December, 2000