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Auditor Report of Poddar Housing & Development Ltd.

Mar 31, 2014

We have audited the accompanying financial statements of PODDAR DEVELOPERS LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2014, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards notifed under 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 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 the effectiveness of the entity''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is suffcient and appropriate to provide a basis for our audit opinion.

BASIS FOR QUALIFIED OPINION

The Company had, in the earlier years, given a loan ofRs.115 lacs to a body corporate, not related to the management, which is unable to repay the instalment and interest thereon. We are informed that the said loan is being rescheduled and is under final stage of settlement as referred to in Note 12 (g). However, the Company has made suitable provision for accrued interest ofRs.31.17 lacs. Further,

no interest income has been provided during the current year. Accordingly, the loan amount ofRs.115 lacs is doubtful of recovery for which no provision has been made in the books of accounts. Had the same been provided for, the assets and the Profit of the Company would have been lower to that extent.

QUALIFIED OPINION

In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31, 2014;

b) in the case of the Statement of Profit and Loss, of the Profit for the year ended on that date; and

c) in the case of the Cash Flow Statement, of the cash flows for the year ended on that date.

EMPHASIS OF MATTER

We draw attention to Note 36 to the financial statements regarding the demand notice raised by the land revenue authorities on the Company in respect of land at Badlapur pertaining to royalty including penal charges amounting to Rs.349.05 lacs. The management has fled a writ petition in the Bombay High Court against the order. Similar levy has been raised on other land owners and have obtained stay from the Court. Accordingly, the management is of the view that the aforesaid demand is not tenable. Our opinion is not Qualified in respect of this matter.

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 notifed under the Companies Act, 1956 read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of section 133 of the Companies Act, 2013;

e) on the basis of written representations received from the directors as on March 31, 2014, and taken on record by the Board of Directors, none of the directors is disQualified as on March 31, 2014, from being appointed as a director in terms of clause (g) of sub-section (1) ofsection274ofthe Companies Act, 1956.

ANNEXURE TO AUDITORS'' REPORT Annexure referred to in Paragraph 1 of the Auditors Report of Even dat to the Members of PODDAR DEVELOPERS LIMITED.

i) a) The Company has maintained records showing full particulars including quantitative details and situation of the Fixed Assets.

b) We are informed that the management has physically verifed some of the fixed assets and no material discrepancies were n ticed on such verifcation. In our opinion, the frequency of ve ifcation is reasonable having regard to size of the Company and nature of its assets.

c) Fixed Assets disposed off during the year were not substantial, and therefore, do not affect the going concern assumption.

ii) a) The inventories have been physically verifed by the management during the year except stock lying with third parties for which the confirmations are being obtained. In our opinion, the frequency of verifcation is reasonable.

b) The procedures for physical verifcation 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 is maintaining stock records in respect of major items of construction division only and discrepancies were not significant between book records and physical verifcation. Mor over, in absence of building wise consumption of the materials, the same has been arrived on the basis of figures submitted by the technical person and auditors have relied thereon. The refe ence is also invited to Note 21 (a).

iii) a) As per the information furnished, the Company has outstanding unsecured loans, including business advances, amounting to Rs. 3491.08 lacs/- (Prev. Year Rs. 3386.55 lacs) given to two parties (Prev. Year four parties) covered in the register maintained under Section 301 of the Companies Act, 1956 and the terms & conditions thereof are prima facie are not prejudicial to the interests of the Company keeping in view the business of the Company and the nature of its transactions. Moreover, the Company is also recovering payment of principal amount and interest thereon wherever it has become due. However, reference is invited to Note 12 (b).

b) The Company has not taken any loans, secured or unsecured, to or from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956. Accordingly, the provisions of clause 4(iii)(e) to 4(iii)(g) of the Order are not applicable to the Company.

iv) In our opinion and according to the information and explanations given to us, the Company has internal control procedure, for purchases of inventory, fixed assets and with regard to the sale of goods & services, which commensurates with the size of the Company. During the course of the audit, we have not observed any major weakness in the internal control system in respect of these areas.

v) a) According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 have been so entered.

b) In our opinion and according to the information and explanations given to us, the Company has not made any transactions pursuant to the contract or arrangement which needs to be entered in the register to be maintained under section 301 of the Act for value exceeding Rs. 5.00 lacs.

vi) In our opinion, and according to the information and explanations given to us, the Company has not accepted any fixed deposits which are covered under provision of section 58A and section 58AA of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975.

vii) In our opinion and according to the information and explanations given to us, Company has an internal audit system commensurate with the size and nature of its business.

viii)The Company is in process of maintaining the cost records in respect of construction activities pursuant to the rule made by the Central government of India under clause (d) of subsection (1) of section 209

of the Companies Act 1956, which need to be updated to make it in line with the prescribed records.

ix) a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is regular in depositing the undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales-tax, wealth tax, customs duty, excise duty, cess and other material statutory dues as applicable with the appropriate authorities.

b) According to the information and explanations given to us, there are no disputed liability of the Company in respect of income-tax, sales tax, customs duty, wealth tax, excise duty and cess as at 31st March 2014 except in respect of liability pertaining to cess amounting to Rs.349.05 lacs as stated under Note 36.

x) The Company has not incurred cash losses in the current year and in the immediately preceding year. The Company has no accumulated losses as at 31st March 2014.

xi) According to the records of the Company examined by us and the information and explanations given to us, the Company has not defaulted in making the repayment of any Term Loan or any dues to the financial institutions or Banks and since the Company has not issued any debentures till date, therefore the question of default does not arise.

xii) The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

xiii) The provisions of any special statue applicable to chit fund/nidhi/ mutual benefit fund/societies are not applicable to the Company.

xiv) In our opinion, the Company has maintained proper records of the transactions and contracts relating to trading in shares, securities, debentures and other investments and timely entries thereof have been made.

xv) The Company has given guarantee to the Bank during the year for the loan taken by its subsidiary company as mentioned under Note 18 (c). However, the terms and conditions thereof are not prejudicial to the interests of the Company.

xvi) Based on information & explanations given to us by the management the term loan was deemed to be applied for the purpose for which the loan was obtained.

xvii)On the basis of an overall examination of the balance sheet of the Company and according to the information and explanations given to us, in our opinion, funds raised on a short-term basis have not been used for long-term investment and vice versa.

xviii)The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Act during the year.

xix)The Company has not issued any debenture till date. Therefore creation of securities in respect of debentures does not arise.

xx)The Company has not raised any money by way of public issues during the year.

xxi)During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have been informed that one of the employees had misappropriated Rs.3.07 lacs in the earlier year while carrying the cash to the site as referred in Note 12 (h). The case is still pending. Except the above, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the Management.

For R.S. SHAH & COMPANY CHARTERED ACCOUNTANTS Firm''s Registration Number: 109762W

R. S. SHAH Place : MUMBAI (PROPRIETOR) Dated : 12th May 2014 Membership No.30108


Mar 31, 2013

REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying financial statements of PODDAR DEVELOPERS LIMITED ("the Company"), which comprise the Balance Sheet as at March 31, 2013, and the Statement of Profit and Loss and Cash Flow Statement for the year then ended, .and a summary of significant accounting policies and other explanatory information.

MANAGEMENT''S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

Management is responsible for the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the Accounting Standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ("the Act"). This responsibility includes the design, implementation and maintenance of internal control relevant to the preparation and 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 that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by 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.

BASIS FORQUALIFIED OPINION

The Company had given a loan to a body corporate, not related to the management, ofRs. 1,15,00,000/- and provided an interest income ofRs. 30,49,278/-, in the earlier years, which are not recovered as stipulated. We are informed that the financial position of the said company is under stress and there are chances of significant delay in recovering the amounts. Accordingly, the above amount of Rs. 1,45,49,278/- is doubtful of recovery for which no provision has been made in the books of accounts. Had the same been provided for, the assets and the profit of the Company would have been lower to that extent.

QUALIFIED OPINION

In our opinion and to the best of our information and according to the explanations given to us, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31,2013;

b) in the case of the Profit and Loss Account, of the profit for the year ended on that date; and

c) in the case of the Cash Flow Statement, of the cash flows 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 ouraudit;

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 CompaniesAct, 1956;

e) on the basis of written representations received from the directors as on March 31, 2013, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2013, from being appointed as a director in terms. of clause (g) of sub-section (1) of section 274 of the CompaniesAct, 1956.

ANNEXURE TO AUDITORS'' REPORT

Annexure referred to in Paragraph 1 of the Auditors Report of Even date to the Members of PODDAR DEVELOPERS LIMITED.

i) a) The Company has maintained records showing full particulars including quantitative details and situation of the Fixed Assets.

b) We are informed that the management has physically verified some of the fixed assets and the necessary effects have been given in the accounts.

c) Fixed Assets disposed off during the year were not substantial, and therefore, do not affect the going concern assumption.

ii a) The inventories have been physically verified by the

management during the year. The Company is maintaining overall stock records in respect of major items of construction division only and discrepancies were not significant between book records and physical verification. Moreover, in absence of building wise consumption of the materials, the same has been arrived on the basis of figures submitted by the technical person and auditors have relied thereon. The reference is also invited to Note 21 (a). In our opinion, the frequency of verification is reasonable.

b) The procedures for 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.

iii) a) As per the information furnished, the Company has outstanding unsecured loans amounting to Rs. 33,86,55,0007- (Prev. Year Rs. 2,77,30,000/-) given to five parties (Prev. Year two parties) covered in the register maintained under Section 301 of the Companies Act, 1956 and the terms & conditions thereof are prima facie are not prejudicial to the interests of the Company keeping in view the business of the Company and the nature of its transactions. Moreover, the Company is also recovering payment of principal amount and interest thereon wherever it has become due.

b) The Company has not taken any loans, secured or unsecured, to or from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956.

iv) In our opinion and according to the information and explanations given to us, the Company has internal control procedure, for purchases of inventory, fixed assets and with regard to the sale of goods & services, which commensurates with the size of the Company.

v) a) According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 have been so entered.

b) In our opinion and according to the information and explanations given to us, the Company has not made any transactions pursuant to the contract or arrangement which needs to be entered into the registered maintained under section 301 oftheActforthe value exceedingRs. 5.00 lakhs.

vi) In our opinion, and according to the information and explanations given to us, the Company has not accepted any fixed deposits which are covered under provision of section 58A and section 58AA of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rule 1975.

vii) In our opinion and according to the information and explanations given to us, Company has an internal audit system commensurate with the size and nature of its business.

viii) The Company is in process of maintaining the cost records in respect of construction activities pursuant to the rule made by the Central government of India under clause (d) of subsection (1) of section 209 of the Companies Act 1956, which need to be updated to make it in line with the prescribed records.

ix) a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is regular in depositing the undisputed statutory dues including provident fund, employees'' state insurance, income-tax, sales-tax, wealth tax, customs duty, excise duty, cess and other material statutory dues as applicable with the appropriate authorities.

b) According to the information and explanations given to us, there are no disputed liability of the Company in respect of income-tax, sales tax, customs duty, wealth tax, excise duty and cess as at 31st March 2013.

x) The Company has not incurred cash losses in the current year and in the immediately preceding year. The Company has no accumulated losses as at 31st March 2013.

xi) According to the records of the Company examined by us and the information and explanations given to us, the Company has not defaulted in making the repayment of any Term Loan or any dues to the financial institutions or Banks and since the Company has not issued any debentures till date, therefore the question of default does notarise.

xii) The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

xiii) The provisions of any special statue applicable to chit fund/nidhi/mutual benefit fund/societies are not applicable to the Company.

xiv) In our opinion, the Company has maintained proper records of the transactions and contracts relating to trading in shares, securities, debentures and other investments and timely entries thereof have been made.

xv) The Company has not given any guarantee to the Bank during the year for the loans taken by other parties.

xvi) Based on information & explanations given to us by the management the term loan was deemed to be applied for the purpose for which the loan was obtained.

xvii) On the basis of an overall examination of the balance sheet of the Company and according to the information and explanations given to us, in our opinion, funds raised on a short-term basis have not been used for long-term investment and vice versa.

xviii) The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Act during the year.

xix) The Company has not issued any debenture till date. Therefore creation of securities in respect of debentures does not arise.

xx) The Company has not raised any money by public issues during the year.

xxi) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have been informed that one of the employees has misappropriated Rs..3,00,000/- while carrying the cash to the site as referred in Note 12 (h). Except the above, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the Management.

For R.S. SHAH & COMPANY

CHARTERED ACCOUNTANTS

Firm''s Registration Number: 109762W

R. S. SHAH

Place: MUMBAI (PROPRIETOR)

Date: 7th May 2013 (Membership No.30108)


Mar 31, 2012

(1) We have audited the attached Balance Sheet of PODDAR DEVELOPERS LIMITED as at 31 st March 2012, the relative Profit and Loss Statement and the Cash Flow statement for the year ended on that date, all of which have been signed by us under reference to this report. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit. "

(2) We have conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes, examining on test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

(3) As required by the Companies (Auditors' Report) Order, 2003 issued by the Central Government of India in terms of Section 227 (4A) of the Companies Act, 1956, and on the basis of such checks as we considered appropriate and according to the information and explanations given to us, we set out in the Annexure a statement on the matters specified in paragraphs 4 & 5 of the said order.

(4) Further to our comments in the Annexure referred to in paragraph (3) above we report that:

1. 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.

2. In our opinion, proper books of accounts as required by law, have been kept by the Company so far as appears from our examination of books.

3. The Balance Sheet, Profit and Loss Statement and Cash Flow Statement dealt with by this report, are in agreement with the books of account.

4 In our opinion, the Balance Sheet, Profit & Loss Statement, and Cash Flow statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3c) of Section 211 of the Companies Act, 1956.

5 On the basis of written representation received from the Directors and taken on records by the Board of Directors, we report that none of the Directors is disqualified as at 31st March 2012 from being appointed as a director in terms of clause (g) of Sub-section (1) of Section 274 of the Companies Act, 1956.

6 We draw your attention to the following Notes in the financial , statement in respect of:- '

a) Note 12 (a) and 17 (a) regarding non-provision of doubtful advances aggregating to Rs 51,83,680/-.

b) Note 12(b) regarding the recovery/realization of advances of Rs 67,68,978/-, including doubtful advances ofRs 3,18,500/- for which no provision has been made, given for purchase of land at Bhivpuri.

c) Note 12 (e) (2) regarding stagnant advances of Z20,27,758/- to the aggregator of land at Tisgaon-Dombivali and Note 14(a) (2) regarding the effect of expenditure incurred for development of land at Tisgaon belonging to others of Rs 21,88,095/-, in case the project is abandoned.

d) Note 12 (f)(1) regarding the recovery and confirmation of advances given towards redevelopment project at Colaba amounting to Rs 41,62,530/- including incidentals.

We are unable to express the exact impact on the profit and the reserves of the Company for the points referred herein above.

7 Subject to above in our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the Notes thereon, give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view:

(a) In case of the Balance Sheet, of the state of affairs of the Company as at 31 st March 2012 and;

(b) In case of Profit and Loss Statement, of the profit of the Company for the year ended on that date.

(c) In case of Cash Flow Statement, of the cash flows for the year ended on that date.

ANNEXURE TO AUDITORS' REPORT

Annexure referred to in Paragraph 3 of the Auditors Report of Even date to the Members of PODDAR DEVELOPERS LIMITED.

i) a) The Company has maintained records showing full particulars including quantitative details and situation of the Fixed Assets.

b) We are informed that the management has physically ' verified some of the fixed assets and the necessary effects have been given in the accounts.

c) Fixed Assets disposed off during the year were not substantial, and therefore, do not affect the going concern assumption.

ii) a) The inventories have been physically verified by the management during the year. The Company is maintaining overall stock records in respect of major items of construction division only and discrepancies were not significant between book records and physical verification. Moreover, in absence of building wise consumption of the materials, the same has been arrived on the basis of figures submitted by the technical person and auditors have relied thereon. The reference is also invited to Note 21 (a). In our opinion, the frequency of verification is reasonable.

b) The procedures for 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.

iii) a) As per the information furnished the Company has outstanding unsecured loans given amounting to Rs 2,77,30,000/- (maximum outstanding Rs 3,26,57,000/-) given to two parties (Prev. Year Nil) covered in the register maintained under Section 301 of the Companies Act, 1956 and the terms & conditions thereof are prima facie are not prejudicial to the interests of the Company and are also regular in payment of principal amount and interest thereon.

b) The Company has not taken any loans, secured or unsecured, to or from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956.

iv) In our opinion and according to the information and explanations given to us, the Company has internal control procedure for purchases of inventory, fixed assets and with regard to the sale of goods & services which needs to be strengthened to make it adequate to commensurate with the size of the Company.

v) a) According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 have been so entered.

b) In our opinion and according to the information and explanations given to us, the Company has not made any transactions pursuant to the contract or arrangement which needs to be entered into the registered maintained under section301 oftheActforthevalueexceedingRs5.00lakhs.

vi) In our opinion, and according to the information and explanations given to us, the Company has not accepted any fixed deposits which are covered under provision of section 58A and section 58AA of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rule 1975.

vii) In our opinion and according to the information and explanations given to us, Company has an internal audit system commensurate with the size and nature of its business.

viii) The Company is in process of maintaining the cost records in respect of construction activities pursuant to the rule made by the Central government of India under clause (d) of subsection (1) of section 209 of the Companies Act 1956, which need to be updated to make it in line with the prescribed records.

ix) a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is regular in depositing the undisputed statutory dues including provident fund, employees' state insurance, income-tax, sales-tax, wealth tax, customs duty, excise duty, cess and other material statutory dues as applicable with the appropriate authorities. However as per the information verbally provided to us, Income Tax liabilities of Rs 6,11,194/- in respect of various assessments is outstanding for a period more than six months is still to be paid. Reference is invited to Note 32 of the statement of accounts.

b) According to the information and explanations given to us, there are no disputed liability of the Company in respect of income-tax, sales tax, customs duty, wealth tax, excise duty and cess as at 31st March 2012.

x) The Company has not incurred cash losses in the current year and in the immediately preceding year. The Company has no accumulated losses as at 31 st March 2012.

xi) According to the records of the Company examined by us and the information and explanations given to us, the Company has not defaulted in making the repayment of any Term Loan or any dues to the financial institutions or Banks and since the Company has not issued any debentures till date, therefore the question of default does not arise.

xii) The Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

xiii) The provisions of any special statue applicable to chit fund/nidhi/mutual benefit fund/societies are not applicable to the Company.

xiv) In our opinion, the Company has maintained proper records of the transactions and contracts relating to trading in shares, securities, debentures and other investments and timely entries thereof have been made.

xv) The Company has not given any guarantee to the Bank during the year for the loans taken by other parties.

xvi) Based on information & explanations given to us by the management the term loan was deemed to be applied for the purpose for which the loan was obtained.

xvii) On the basis of an overall examination of the balance sheet of the Company and according to the information and explanations given to us, in our opinion, funds raised on a short-term basis have not been used for long-term investment and vice versa.

xviii) The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Act during the year.

xix) The Company has not issued any debenture till date. Therefore creation of securities in respect of debentures does not arise.

xx) The Company has not raised any money by public issues during the year.

xxi) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the Management.

For R.S. SHAH & COMPANY

CHARTEREDACCOUNTANTS

Firm's Registration Number: 109762W

R. S. SHAH

Place: MUMBAI (PROPRIETOR)

Date: 14th May 2012 (Membership No.30108)


Mar 31, 2010

(1) We have audited the attached Balance Sheet of PODDAR DEVELOPERS tptpLIMITED (Formerly known as WEAROLOGY LIMITED) as at 31s" March 2010, the relative Profit and Loss Account and the Cash Flow statement for the year ended on that date, all of which have been signed by us under reference to this report. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

(2) We have conducted our audit in accordance with auditing standards generally accepted in India. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes, examining on test basis, evidence supporting the amounts and disclosures in the financial statements. An Audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

(3) As required by the Companies (Auditors Report) Order, 2003 issued by the Central Government of India in terms of Section 227 (4A) of the Companies Act, 1956, and on the basis of such checks as we considered appropriate and according to the information and explanations given to us, we set out in the Annexure a statement on the matters specified in paragraphs 4 & 5 of the said order.

(4) Further to our comments in the Annexure referred to in paragraph (3) above we report that:

1. 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.

2. In our opinion, proper books of accounts as required by law, have been kept by the Company so far as appears from our examination of books. However, the liability in respect of retirement benefits are not actuarially determined and provision has not been made for impairment of the assets.

3. The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt with by this report, are in agreement with the books of account.

4. In our opinion, the Balance Sheet, Profit & Loss Account, and Cash Flow statement dealt with by this report comply with the Accounting Standards referred to in sub-section (3c) of Section 211 of the Companies Act, 1956 except for provision for liability in respect of employees benefits as strictly required byAS-15 (revised 2005) and for impairment of assets as required under AS-28 issued by the Council of the I.C.A.I.

5. On the basis of written representation received from the Directors and taken on records by the Board of. Directors, we report that none of the Directors is disqualified as at 31s1 March 2010 from being appointed as a director in terms of clause (g) of Sub-section (1) of Section 274 of the Companies Act, 1956.

6. We draw your attention to Schedule O to the financial statement in respect of :-

a) Note no. 4 regarding non-provision for impairment of assets as required under AS-28.

b) Note no. 5 regarding non-provision for doubtful advances of Rs. 25 lacs.

c) Note no. 8 regarding recovery of stagnant advances of Rs. 28.33 lacs given for Tisgaon project.

d) Note no. 9d regarding the recovery/realization of advances of Rs. 25.27 lacs given for purchase of land at Bhivpuri.

e) Note No. 10 regarding the acquisition of Land development right of Rs. 1075.25 lacs pending approvals from statutory authorities.

We are unable to express the exact impact on the profit and the reserves of the Company for the points referred herein above.

7. Subject to above in our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with the Notes thereon, give the information required by the Companies Act, 1956 in the manner so required and give a true and fair view:

(a) In case of the Balance Sheet, of the state of affairs of the Company as at 31s March 2010 and;

(b) In case of Profit and Loss Account, of the profit of the Company for the year ended on that date.

(c) In case of Cash Flow Statement, of the cash flows for the year ended on that date.

ANNEXURE TO AUDITORS REPORT

Annexure referred to in Paragraph 3 of the Auditors Report of even date to the Members of PODDAR DEVELOPERS LIMITED (Formerly known as WEAROLOGY LIMITED)

i) a) The Company has maintained records showing full particulars including quantitative details and situation of the Fixed Assets.

b) We are informed that the management has physically verified some of the fixed assets and the necessary effects have been given in the accounts.

c) Fixed Assets disposed off during the year were not substantial, and therefore, do not affect the going concern assumption.

ii) a) The inventory has been physically verified by the management during the year and also obtained the confirmations for the goods lying with the third parties. In our opinion the frequency of verification is reasonable.

b) The procedures for 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) In our opinion, the Company is maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and the book records were not material.

iii) The Company has neither granted nor taken any loans, secured or unsecured, to or from companies, firms or other parties covered in the register maintained under Section 301 of the Companies Act, 1956.

iv) In our opinion and according to the information and explanations given to us, there are adequate Internal control procedures commensurate with the size of the Company and the nature of its business with regard to purchases of inventory, fixed assets and with regard to the sale of goods & services. During the course of our audit, no major weakness has been noticed in the internal controls.

v) a) According to the information and explanations given to us, we are of the opinion that the transactions that need to be entered into the register maintained under section 301 have been so entered.

b) In our opinion and according to the information and explanations given to us, the Company has made certain transactions pursuant to the contract or arrangement entered into the registered maintained under section 301 of the Act for the value exceeding Rs. 5.00 lakhs in respect of the subsidiaries which are prima facie not prejudicial to the interests of the Company.

vi) In our opinion, and according to the information and explanations given to us, the Company has not accepted any fixed deposits which are covered under provision of section 58A and section 58AA of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rule 1975.

vii) In our opinion and according to the information and explanations given to us, Company has an internal audit system commensurate with the size and nature of its business.

viii) The Central government has not prescribed any records pursuant to Rules for the maintenance of cost records under section 209 (1) (d) of the Companies Act, 1956.

ix) a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is regular in depositing the undisputed statutory dues including provident fund, employees state insurance, income- tax, sales-tax, wealth tax, customs duty, excise duty, cess and other material statutory dues as applicable with the appropriate authorities. However as per the information verbally provided to us, Income Tax liabilities of Rs. 6,11,194/- in respect of various assessments is outstanding for a period more than six months is still to be paid. Reference is invited to note no. 3b & 3c of Notes on accounts.

b) According to the information and explanations given to us, there are no disputed liability of the Company in respect of income-tax, sales tax, customs duty, wealth tax, excise duty and cess as at 31s March 2010. However, reference is invited to Note No. 3 in Schedule O of Notes on Accounts.

x) The Company has not incurred cash losses in the current year and in the immediately preceding year. The Company has no accumulated losses as at 31s" March 2010.

xi) According to the records of the Company examined by us and the information and explanations given to us, the Company has not defaulted in making the repayment of any Term Loan or any dues to the financial institutions or Banks and since the Company has not issued any debentures till date, therefore the question of default does not arise.

xii) During the year, the Company has neither taken any loan from Financial Institution nor issued any debentures.

xiii) The provisions of any special statue applicable to chit fund/nidhi/mutual benefit fund/societies are not applicable to the Company.

xiv) In our opinion, the Company has maintained proper records of the transactions and contracts relating to trading in shares, securities, debentures and other investments and timely entries thereof have been made.

xv) The Company has not given any guarantee to the Bank during the year for the loans taken by other parties.

xvi) The Company has not taken any term loan during the year. Therefore, the question of its application does not arise.

xvii) On the basis of an overall examination of the balance sheet of the Company and according to the information and explanations given to us, in our opinion, funds raised on a short-term basis have not been used for long-term investment and vice versa.

xviii) The Company has not made any preferential allotment of shares to parties and companies covered in the register maintained under Section 301 of the Act during the year.

xix) The Company has not issued any debenture till date. Therefore creation of securities in respect of debentures does not arise.

xx) The Company has not raised any money by public issues during the year.

xxi) During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of fraud on or by the Company, noticed or reported during the year, nor have we been informed of such case by the Management.

For R. S. SHAH & COMPANY CHARTERED ACCOUNTANTS

R. S. SHAH

(PROPRIETOR) Membership No. 30108

Place : MUMBAI

Dated : 30th April, 2010



 
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