Home  »  Company  »  Prime Property Devel  »  Quotes  »  Auditor Report
Enter the first few characters of Company and click 'Go'

Auditor Report of Prime Property Development Corporation Ltd.

Mar 31, 2015

We have audited the accompanying financial statements of PRIME PROPERTY DEVELOPMENT CORPORATION LIMITED ("the company"),which comprise the Balance Sheet as at 31 March 2015, the Statement of Profit and Loss, the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters in section 134(5) of the Companies Act, 2013 ("the Act") with respect to 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 the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes the maintenance of adequate accounting records in accordance with the provision of the Act for safeguarding of the assets of the Company and for preventing and detecting the 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 internal financial control, 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 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 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 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;

a) in the case of the Balance Sheet, of the state of affairs of the Company as at March 31,2015;

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 would also like to draw your attention to following notes :

Note No. 25 (ii) where the Company has made a provision of Rs. 5 Crore for MVAT payable, as the High Court has dismissed the Writ Petition filed by the Company.

Note No. 25 (vi) where the Company has made provision for gratuity by adopting actuarial valuation as per Accounting Standard 15 issued by the Institute of Chartered Accountants of India.

Our opinion is not qualified in respect of these matters.

Report on other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order, 2015 ("The Order") issued by the Government of India in terms of sub section (11) of Section 143 of the Companies Act, 2013, we give in the Annexure a statement on the matters specified in paragraphs 3 and 4 of the Order.

2. As required by section 143(3) of the Act, we report that:

a) We have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our audit.

b) In our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books.

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

d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

e) On the basis of written representations received from the directors as on 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) Rule, 2014, in our opinion and to the best of our information and according to the explanation given to us:

i. The Company does not have any pending litigations which shall impact its financial positions.

ii. The Company does not have any long terms contracts for which provisions are required to be made.

iii. There has been no delay in transfering amounts required to be transferred to the Investor Education and Protection Fund by the Company.

(i) In respect of its Fixed Assets

a. The Company has maintained proper records showing full particulars, including quantitative details and situation of its fixed assets.

b. As explained to us and according to the practice generally followed by the Company, all the fixed assets have been verified in a periodical manner by the management during the year and no material discrepancies were noticed on such physical verification. In our opinion, this periodicity of physical verification is reasonable having regard to the size of the Company and nature of its assets. No material discrepancies were noticed on physical verification.

(ii) In respect of inventories

a. We are informed that inventories have been physically verified by the management at reasonable intervals.

b. In our opinion and according to the information and explanation given to us, the procedure of stock-in-trade followed by the management is reasonable and adequate in relation to the size of the company and nature of the business.

c. In our opinion, the company is generally maintaining proper records of inventory. No material discrepancies have been notified between the physical stock and book records.

(iii) In respect of loans granted, secured or unsecured, by the Company to firms or other parties covered in the register maintained u/s 189 of the Companies Act, 2013; The Company has not granted any secured/unsecured loan to any of the parties covered in the register maintained under section 189 of the Companies Act, 2013. Accordingly, sub clauses (a) and (b) are not applicable.

(iv) In our opinion and according to the information and explanations given to us, there is an adequate internal control procedure and system commensurate with the size of the company and nature of its business for purchase of inventory and fixed assets and for sale of goods and services, if any. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system.

(v) The Company has not accepted any deposits from the public within the meaning of Section 73 to Section 79 of the Companies Act 2013.

(vi) We have broadly reviewed the books of accounts maintained by the Company pursuant to the rules made by the Central Governmentof I ndiafort he maintenanceof cost records underSect ion 148(1 )oftheCom paniesAct, 2013, and areoftheopin ion that primafacie, the prescribed accounts and records have been made and maintained being real estate construction business.

(vii) In respect to statutory dues

(a) According to the records of the Company, the undisputed statutory dues under Income tax, Service Tax, Value Added Tax and other Statutory Dues as applicable to it have been generally regularly deposited with the appropriate authorities.

According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March, 2015 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us, there were no dues of Income Tax, Service Tax, Value Added Tax and other Statutory Dues as applicable to it, which have not been deposited with the appropriate authorities on account of any dispute.

(c) According to the records of the Company, the amount that were required to be transferred to the Investor Education and Protection Fund by the company have been transferred within stipulated time.

(viii) The Company does not have accumulated losses. The Company has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year.

(ix) The Company does not have any outstanding dues to any bank or financial institution during the year under review.

(x) According to the information and explanations given to us, the company has not given any guarantee for loans taken by others from bank and financial institutions.

(xi) In our opinion and according to the information and explanations given to us the Company has not obtained term loans during the year.

(xii) According to the information and explanation given to us, no material fraud on or by the Company has been noticed or reported during the course of our audit.

For VORA & ASSOCIATES CHARTERED ACCOUNTANTS (ICAI Firm Reg. No.: 111612W)

MAYUR A. VORA DATED: 22nd May, 2015 PARTNER PLACE: MUMBAI (Membership No. 030097)




Mar 31, 2014

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

Management''s Responsibility for the Financial Statements

The Company''s 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 notified 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 entity''s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the financial statements, read together with the Notes No. 1 to 24 thereon, give the information required by the Companies 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.

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 your attention to Note 24 (v) to the financial statements which states that the Company has transferred Fixed Assets of Rs. 7,83,63,998/- and Cost of Construction of Rs. 15,16,36,002/- appearing under Capital Work in Progress to Inventories for sale in the ordinary course of business. We would also like to draw your attention to Note No. 24 (vi) where the Company has made provision for gratuity by adopting actuarial valuation as per Accounting Standard 15 issued by the Institute of Chartered Accountants of India. Our opinion is not qualified in respect of theses matters.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor''s Report) Order, 2003 ("The Order") issued by the Government of India in terms of sub section (4A) of Section 227 of the Companies Act, 1956, 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 Companies Act, 1956, 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 notified in sub section(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 the Auditors'' Report

(Referred to in paragraph 1 under the heading "Report on Other Legal and Regulatory Requirements" of our Report of even date for the year ended 31st March 2014)

(i) In respect of its Fixed Assets

(a) The Company has maintained proper records showing full particulars, including quantitative details and situation of its fixed assets.

(b) As explained to us and according to the practice generally followed by the Company, all the fixed assets have been verified in a periodical manner by the management during the year and no material discrepancies were noticed on such physical verification. In our opinion, the periodicity of physical verification is reasonable having regard to the size of the Company and nature of its assets.

(c) During the year, the Company has transferred an Asset and Capital Work in Progress thereon to the Inventory for sale in normal course of business. However, the Company has not disposed off any substantial part of its fixed assets during the year under review, so as to affect its going concern.

(ii) In respect of inventories

(a)As explained to us, the Management as at the end of the financial year or after the year end has physically verified the stock of inventory in the Company''s custody.

(b)In our opinion and according to the information and explanation given to us, the procedure of physical verification of stock followed by the management is reasonable and adequate in relation to size of the Company and nature of its business.

(c)In our opinion, the Company is generally maintaining proper records of inventory. The discrepancies noticed on verification between the physical stocks and book records were not material having regard to the size of the operations of the Company and have been dealt with in the books of accounts at appropriate prevailing value.

(iii) In respect of loans, secured or unsecured, granted or taken by the Company to / from Companies, firms or other parties covered in the register maintained u/s 301 of the Companies Act,1956;

(a) During the year, the Company has not granted any secured or unsecured loans to companies, firms or other parties covered under register maintained u/s 301 of the Companies Act, 1956. Consequently, the requirements of paragraphs 4(iii) (b), (c), (d) of the "Order" are not applicable to the Company.

(e) The Company has taken unsecured loan from 1 party covered in the register maintained u/s 301 of the Companies Act, 1956. In respect of the said loan, the maximum amount outstanding at any time during the year was Rs. 18,50,00,000/-and the year-end balance is Rs. NIL.

(f) The rate of interest and other terms and conditions of the aforesaid loan taken is prima facie not prejudicial to the interest of the Company.

(g) The Company has repaid the principal amount and interest as stipulated to the aforesaid party.

(iv) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the company and nature of its business for purchase of inventory and fixed assets and for sale of goods and services, if any. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal control system.

(v) In respect of contracts or arrangements entered in the register maintained in pursuance of section 301 of the Companies Act, 1956;

(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 Act have been entered 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 contracts and arrangements entered in the Register maintained u/s 301 of the Companies Act, 1956 and exceeding the value of Rs. 5.00 lacs in respect of each party during the year have been made at prices which appear reasonable as per the information available with the Company.

(vi) The Company has not accepted any deposits from the public within the meaning of Section 58A and Section 58AA of the Companies Act 1956.

(vii) As informed to us, the Company has no formal internal audit department as such, but its internal control procedures generally ensure reasonable internal check of its financial and other records, commensurate with the size of the Company and nature of its business.

(viii) We have broadly reviewed the books of accounts maintained by the Company pursuant to the rules made by the Central Government of India for the maintenance of cost records under section 209(1) (d) of the Companies Act, 1956 and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained being real estate construction business.

(ix) In respect to statutory dues

(a) According to the records of the Company, the undisputed statutory dues under Income Tax, Wealth Tax, Value Added Tax, Service Tax and other Statutory Dues as applicable to it have been generally regularly deposited with the appropriate authorities.

According to the information and explanations given to us, no undisputed amounts payable in respect of the aforesaid dues were outstanding as at 31st March, 2014 for a period of more than six months from the date of becoming payable.

(b) According to the information and explanations given to us, there were no dues of Income Tax, Wealth Tax, Value Added Tax, Service Tax and other statutory dues as may be applicable to it, which have not been deposited with the appropriate authorities on account of any dispute.

(x) The Company does not have accumulated losses. The Company has not incurred cash losses during the financial year covered by our audit and in the immediately preceding financial year.

(xi) The Company does not have any outstanding dues to any bank or financial institution during the year under review.

(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) In our opinion and according to the information and explanation given to us, the Company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, the provisions of clause 4 (xiii) of "the Order" are not applicable to the Company.

(xiv) In our opinion, the Company is not a dealer in or trader in shares, securities, debentures and other investments. However, the Company has invested surplus funds in marketable securities and are held in its own name. The Company has maintained proper records of the transactions and contracts and timely entries have been made therein.

(xv) According to the information and explanations given to us, the Company has given corporate guarantee to the bankers on behalf of Wholly Owned Subsidiary Company Sea King Club Private Limited in respect of credit facilities availed of Rs. 50 crores.

(xvi) According to the information and explanations given to us, the Company has not obtained any term loan during the year. Therefore, the provisions of clause 4 (xvi) of "the Order" are not applicable to the Company

(xvii) The Company has not raised any fund on short term basis that have been used for long term investment.

(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 Companies Act 1956, during the year.

(xix) The Company has not raised any funds by way of debenture during the year.

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

(xxi) According to the information and explanation given to us, no material fraud on or by the Company has been noticed or reported during the course of our audit.

For VORA & ASSOCIATES CHARTERED ACCOUNTANTS (ICAI Firm Reg. No: 111612W) MAYUR A. VORA PARTNER (Membership No: 030097) Place: Mumbai Dated: 14th May, 2014


Mar 31, 2012

1. We have audited the attached Balance Sheet of PRIME PROPERTY DEVELOPMENT CORPORATION LIMITED as at 31st March 2012, the Statement of Profit and Loss and the Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

3. As required by Companies (Auditor's Report) Order, 2003 issued by the Central Government in terms of Section 227 (4A) of the Companies Act,1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

4. Further to our comments in the Annexure referred to in Paragraph (3) above; we report that;

(i) we have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit;

(ii) in our opinion, proper books of accounts as required by law have been kept by the Company so far as appears from our examination of those books;

(iii) the Balance Sheet, the Statement of Profit & Loss and the Cash Flow Statement dealt with by this report are in agreement with the books of accounts;

(iv) in our opinion, the Balance Sheet, the Statement of Profit & Loss and the 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;

(v) On the basis of written representation received from the Directors as on March 31, 2012 and taken on record by the Board of Directors of the Company, we report that none of the Directors is prima-facie disqualified from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956 and

(vi) Without qualifying our report, we draw your attention to the following Notes to the Financial Statements:

Note 10: Regarding no depreciation charged on the property located at Vile Parle (W) being Capital Work in Progress and the additional development expenditure incurred on the said property.

Note 12 : Regarding no interest has been charged on Loan given to Wholly Owned Subsidiary.

Note 24 (i) (b) : Regarding no provision for MVAT liability of earlier years.

Note 24 (vi) (b) : Regarding no provision for gratuity payment liability since it is accounted on cash basis. '

Subject to above;

In our opinion and to the best of our information and according to the explanations given to us, the said Financial Statements read to- gether with Significant Accounting Policies and notes thereon, give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India:

(a) in the case of the Balance Sheet, of the State of affairs of the company as at March 31, 2012;

(b) in the case of Statement of Profit & 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.

Annexure to the Auditors' Report

(Referred to in paragraph 3 of our Report of even date on accounts of Prime Property Development Corporation Limited for the year ended 31 st March 2012)

1. In respect of its Fixed Assets :

(a) The company has generally maintained records showing full particulars including quantitative details and situation of fixed assets.

(b) As explained to us and according to the practice generally followed by the Company, all the fixed assets of the Company are physically verified by the management in a phased periodical manner, which in our opinion is reason able having regard to the size of the Company and nature of its assets. No material discrepancies have been noticed on physical verification;

(c) The fixed assets disposed off during the year, do not constitute a substantial part of the fixed assets of the Company so as to affect its going concern;

2. In respect of Inventories:

(a) As explained to us, the Management as at the end of the financial year or after the year-end has physically verified the stocks of inventory in the Company's custody.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of the stocks as 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 generally maintaining proper records of inventory. The discrepancies noticed on verification between the physical stock and the book records were not material having regard to the size of the operations of the Company. And have been dealt with in the books of accounts at appropriate prevailing value.

3. In respect of the loans, Secured or Unsecured, granted or taken by the Company to/from the companies, firms or other parties covered under register maintained u/s 301 of The Companies Act, 1956

(a) The Company has not granted any secured or unsecured loans to companies, firms and other parties as covered in the register maintained under section 301 of the Companies Act, 1956. Accordingly, paragraphs 4 (iii) (b) (c) and (d) of the Order are not applicable.

(e) The Company has taken unsecured loan from 1 party covered in the register maintained under section 301 of the Companies Act, 1956. The maximum amount outstanding during the year is Rs. 13,46,30,000/- & year-end balance is Rs.12,04,80,000/-.

(f) In our opinion and according to the information and explanation given to us, the rate of interest and other terms and conditions of such loan taken are prima facie not prejudicial to the interest of the Company.

(g) The Company is regular in repaying the principal amounts as stipulated and has been regular in payment of interest as stipu lated to the party listed in the register maintained under section 301 of the Companies Act, 1956.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and nature of its business for purchase of inventories, fixed assets and for sale of goods, if any. Further on the basis of our examination of the books and records of the Company, we have neither cqme across nor have been informed of any continuing failure to correct weaknesses in the aforesaid internal control systems.

5. In respect of contracts or arrangements entered in the Register maintained in pursuance of Section 301 of the Companies Act 1956, to the best of our knowledge and belief and according to the information and explanations given to us:

(a) In our opinion, the transactions in which directors were interested and which were required to be entered into the register maintained under Section 301 of the Companies Act, 1956 have been so entered.

(b) In our opinion and having regard to our comments in paragraph (3) above, transactions made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Companies Act, 1956 and exceeding the value of Rs. 5,00,000/- in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time where such market prices are prima-facie made available.

6. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public during the year, within the meaning of Section 58A and Section 58AA of the Companies Act 1956 and the rules framed there under. Therefore the provision of clause 4 (vi) of the Order are not applicable to the company.

7. In our opinion and according to the information and explanations given to us, the Company has no formal internal audit department as such, but its internal control procedures generally ensure reasonable internal check of its financial and other records, commensurate with the size of the Company and the nature of its business.

8. We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 209 (1)(d) of the Companies Act, 1956 and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained being construction business.

9. According to the information and explanation given to us, in respect to statutory dues:

(a) The company is generally regular in depositing with the appropriate authorities in India the undisputed statutory dues under Income tax Act, Wealth Tax, Value Added Tax, Service Tax, Duties and other material statutory dues as applicable to it.

(b) At the end of the financial year, there were no undisputed amounts payable in respect of Income tax, Wealth Tax, Value Added Tax, Service Tax and other statutory dues as applicable, for a period of more than six months from the date they become payable. However MVAT liability of earlier years is yet to be determined by the department and payment thereof to be made.

10. The Company does not have accumulated losses. However, the Company has made NET LOSS in the year under review and has incurred a cash loss of Rs. 2,35,31,469/- during the financial year covered by our audit. Cash loss incurred during the immediately preceding financial year was Rs. 2,55,60,023/-.

11. In our opinion and according to the information and explanation given to us, the Company has not defaulted in repayment of its dues to any bank or financial institution during the year under review.

12. In our opinion and according to the information and explanation given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion and according to the information and explanation given to us, the Company is not a chit fund or a nidhi/mutual benefit fund / society. Therefore, the provisions of clause 4 (xiii) of the order are not applicable to the Company.

14. In our opinion and according to the information and explanations given to us, the Company is not a dealer in or trader in shares, securities, debentures and other investments. However, the Company has invested surplus funds in marketable securities and are held in its own name. The Company has maintained proper records of the transactions and Contracts and timely entries have been made therein.

15. In our opinion and according to the information and explanations given to us, the Company has given corporate guarantee to the bankers on behalf of the Wholly Owned Subsidiary Company Sea-King Club Private Ltd in respect of credit facilities availed aggregating to Rs. 50 crores.

16. In our opinion and according to the information and explanations given to us, the funds raised co-relating to the end use of term loans has been, prima facie, applied for the intended purpose for which they were obtained.

17. In our opinion and according to the information and explanations given to us, and on an overall examination of the balance sheet of the Company, we report that no funds raised on short-term basis have been used for long-term investment.

18. According to the information and explanations given to us, during the year covered by our audit report 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. During the year covered by our audit report, the Company has not raised any money by way of debenture issue. Therefore, the provisions of clause 4 (xix) of the order is not applicable to the Company.

20. During the year covered by our audit report, the Company has not raised any money by way of public issues.

21. To the best of our knowledge and according to the information and explanations given to us, no fraud by the Company and no fraud on the Company has been noticed or reported during the year.

For VORA & ASSOCIATES

CHARTERED ACCOUNTANTS

(ICAI Firm Reg. No.: 111612W)

MAYUR A. VORA

Place: Mumbai PARTNER

Dated : 31st July, 2012 (Membership No.30097)


Mar 31, 2010

1. We have audited the attached Balance Sheet of PRIME PROPERTY DEVELOPMENT CORPORATION LIMITED as at March 31, 2010 and also the Profit and Loss Account and the Cash Flow Statement of the Company for the year ended on that date, annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audit.

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

3. As required by Companies (Auditors Report) Order, 2003 as amended by the Companies issued by the Central Government in terms of sub-Section (4A) of 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order.

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

i. we have obtained all the information and explanations, which to the best of our knowledge and belief, were necessary for the purpose of our audit;

ii. in our opinion, proper books of account, as required by law have been kept by the Company, so far as appears from our examination of those books of accounts;

iii. the Balance Sheet, the Profit and Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of accounts of the company;

iv. in our opinion, the Balance Sheet and Profit and Loss Account and the 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;

v. Without qualifying our opinion, we draw attention to the following notes to Accounts II:

iv. Acquiring 100% Equity shares of Sea-King Club Pvt. Ltd. for Rs. 30.10 Crores.

vi. No depreciation is charged on the property located at Vile Parle (w) and has incurred development expenses on the said property.

ix. Gratuity payment is accounted on cash basis, Hence, no provision is made for the same.

vi. based on the representations made by the Directors and taken on record by the Board of Directors of the

Company and the information and explanations given to us, none of the Directors is, as at March 31, 2010, prima-facie disqualified from being appointed as a director in terms of clause (g) of sub-section (1) of Section 274 of the Companies Act, 1956 and

vii. In our opinion and to the best of our information and according to the explanations given to us, the said accounts read together with notes thereon, subject to the matter referred to in clause (v) of paragraph 4 above, 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 March 31, 2010 and

(b) In the case of the Profit and Loss Account, of the PROFIT, of the company for the year ended on that date; and

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

ANNEXURE TO THE AUDITORS REPORT

(Referred to in paragraph 3 of our Report of even date on accounts of Prime Property Development Corporation Limited for the year ended 31st March 2010.)

1. In respect of its Fixed Assets :

(a) The company has generally maintained records showing full particulars including quantitative details and situation of fixed assets.

(b) As explained to us, according to the practice generally followed, the fixed assets of the Company are physically verified by the management at reasonable intervals, in a proper manner, which in our opinion is reasonable looking to the size of the Company and nature of its business. According to the information and explanation given to us, no discrepancies have been noticed on physical verification and does not require any adjustment in the books of accounts;

(c) The Company has not disposed off any of its fixed assets so as to affect its going concern status;

2. In respect of Inventories:

(a) As explained to us, the Management as at the end of the financial year or after the year-end has physically verified the stocks of inventory in the Companys custody.

(b) In our opinion and according to the information and explanations given to us, the procedures of physical verification of the stocks as 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 generally maintaining proper records of inventory. The discrepancies noticed on verification between the physical stock and the book records were not material having regard to the size of the operations of the Company. And have been dealt with in the books of accounts at appropriate prevailing value.

3. In respect of the loans, Secured or Unsecured, granted or taken by the Company to/from the companies, firms or other parties covered under register maintained u/s 301 of The Companies Act, 1956:

(a) The Company has not granted any secured or unsecured loans to companies, firms and other parties as covered in

the register maintained under section 301 of the Companies Act, 1956. Accordingly, paragraphs 4 (iii) (b) (c) and (d) of the Order are not applicable.

(b) The Company has taken unsecured loan from one of the party covered in the register maintained under section 301 of the Companies Act, 1956. The maximum amount outstanding during the year is Rs. 16,15,04,595/- & year- end balance is Rs. 16,15,04,595/-.

(c) In our opinion and according to the information and explanation given to us, the rate of interest and other terms and conditions as stipulated on which the Company has taken the loans from party required to be listed in the register maintained under section 301 and section 370 (1B) of the Companies Act, 1956 are prima facie not prejudicial to the interest of the Company.

(d) The Company is regular in repaying the principal amounts as stipulated and has been regular in payment of interest as stipulated to the parties listed in the register maintained under section 301 of the Companies Act, 1956.

4. In our opinion and according to the information and explanations given to us, there are adequate internal control procedures commensurate with the size of the Company and nature of its business for purchase of inventories, fixed assets and for sale of goods. Further on the basis of our examination of the books and records of the Company and according to the information and explanations given to us, we have neither come across nor have been informed any continuing failure to correct weaknesses in the aforesaid internal control systems.

5. In respect of contracts or arrangements entered in the Register maintained in pursuance of Section 301 of the Companies Act 1956, to the best of our knowledge and belief and according to the information and explanations given to us:

(a) In our opinion, the transactions in which directors were interested and which were required to be entered into the register maintained under Section 301 of the Companies Act, 1956 have been so entered.

(b) In our opinion and having regard to our comments in paragraph (3) above, transactions made in pursuance of contracts or arrangements entered in the register maintained under Section 301 of the Companies Act, 1956 and exceeding the value of Rs. 5,00,000/- in respect of any party during the year have been made at prices which are reasonable having regard to prevailing market prices at the relevant time where such market prices are prima- facie made available.

6. In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public within the meaning of Section 58A and Section 58AA of the Companies Act 1956 and the rules framed there under. Therefore the provision of clause 4 (vi) of the Order are not applicable to the company.

7. In our opinion and according to the information and explanations given to us, the Company has no formal internal audit department as such, but its internal control procedures generally ensure reasonable internal check of its financial and other records, commensurate with the size of the Company and the nature of its business.

8. As informed to us, the maintenance of cost records has not been prescribed by the Central Government under Section 209 (1) (d) of the Companies Act, 1956, in respect of activities carried on by the Company. Therefore the provision of clause 4 (viii) of the Order are not applicable to the company.

9. According to the information and explanation given to us, in respect to statutory dues:

(a) The company is generally regular in depositing with the appropriate authorities in India the undisputed statutory dues under Income tax Act, Wealth Tax, Value Added Tax, Service Tax, Duties and other material statutory dues as applicable to it.

(b) At the end of the financial year, there were no undisputed amounts payable in respect of Income tax, Wealth Tax, Value Added Tax, Service Tax and other statutory dues as applicable, for a period of more than six months from the date they become payable.

10. The Company does not have accumulated losses and it has not incurred any cash losses during the financial year covered by our audit and the immediately preceding financial year.

11. In our opinion and according to the information and explanation given to us, the Company has not defaulted in repayment of its dues to any bank or financial institution during the year under review.

12. In our opinion and according to the information and explanation given to us, the Company has not granted any loans and advances on the basis of security by way of pledge of shares, debentures and other securities.

13. In our opinion and according to the information and explanation given to us, the Company is not a chit fund or a nidhi/mutual benefit fund / society. Therefore, the provisions of clause 4 (xiii) of the order are not applicable to the Company.

14. In our opinion and according to the information and explanations given to us, the Company is not a dealer in or trader in shares, securities, debentures and other investments. However, the Company has invested surplus funds in marketable securities and are held in its own name. The Company has maintained proper records of the transactions and Contracts and timely entries have been made therein.

15. In our opinion and according to the information and explanations given to us, the Company has not given any guarantee for loans from bank and financial institutions on behalf of others.

16. In our opinion and according to the information and explanations given to us, the funds raised co-relating to the end use of term loans has been, prima facie, applied for the intended purpose for which they were obtained.

17. In our opinion and according to the information and explanations given to us, and on an overall examination of the balance sheet of the Company, we report that no funds raised on short-term basis have been used for long-term investment.

18. According to the information and explanations given to us, during the year covered by our audit report 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. During the year covered by our audit report, the Company has not raised any money by way of debenture issue. Therefore, the provisions of clause 4 (xix) of the order is not applicable to the Company.

20. During the year covered by our audit report, the Company has not raised any money by way of public issues.

21. During the year covered by our audit report and as explained to us, to the best of our knowledge and belief, no material fraud has been noticed or reported by the Company.



FOR VORA & ASSOCIAtES

ChARtERED ACCOUNtANtS

(ICAI Firm Reg. No.: 111612W)

MAYUR A. VORA

Place : Mumbai PARtNER

Date : 12th July, 2010 (Membership No. 30097)

 
Subscribe now to get personal finance updates in your inbox!