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Auditor Report of HB Estate Developers Ltd.

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

 
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