Mar 31, 2018
Report on the Financial Statements
We have audited the accompanying Standalone Ind AS financial statements of PRIME PROPERTY DEVELOPMENT CORPORATION LIMITED (âthe Companyâ), which comprise the Balance Sheet as at 31 March 2018, the Statement of Profit and Loss (including Other Comprehensive Income), the Statement of Changes in Equity and the Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information (herein referred to as âStandalone Ind AS Financial Statementsâ).
Management''s Responsibility for the Standalone Ind AS Financial Statements
The Company''s Board of Directors is responsible for the matters in section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation of these Standalone Ind AS 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 Indian Accounting Standards (Ind AS) prescribed 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 controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Standalone Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
In preparing the Standalone Ind AS financial statements, management is responsible for assessing the Company''s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Auditor''s Responsibility
Our responsibility is to express an opinion on these Standalone Ind AS financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder,
We conducted our audit of the Standalone Ind AS financial statements in accordance with the Standards on Auditing specified under section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Standalone Ind AS financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Standalone Ind AS financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the Standalone Ind AS financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the Standalone Ind AS 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 Standalone Ind AS financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone Ind AS financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the Standalone Ind AS financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs (financial position) of the Company as at 31st March, 2018, and its PROFIT (financial performance including other comprehensive income), its cash flows and changes in equity for the year ended on that date.
Other Matters
The comparative financial information of the company for the year ended March 31,2017 and transition date opening balance sheet as at April 01,2016 included in this standalone Ind AS financial statements, are based on the previously issued statutory financial statements for the years ended March 31,2017 and March 31,2016 prepared in accordance with the companies (Accounting Standards) Rules, 2006 (as amended), which were audited by the predecessor auditor who express an unqualified opinion vide report dated May 18, 2017 and May 28, 2016 respectively. The adjustment to those financial statements for the difference in Accounting principles adopted by the company on transition to the Ind As have been audited by us.
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, 2016 (âThe Orderâ) issued by the Government of India in terms of sub section (11) of Section 143 of the Companies Act, 2013, we give in the âAnnexure Aâ, 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 (including Other Comprehensive Income), the Cash Flow Statement and Statement of Changes in Equity dealt with by this Report are in agreement with the books of account.
d) In our opinion, the aforesaid Standalone Ind AS financial statements comply with the Indian 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, 2018, taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2018, from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operative effectiveness of such controls, refer to our separate report in âAnnexure Bâ to this report. and
g) With respect to the other matters to be included in the Auditor''s Report in accordance with Rule 11 of the Companies (Audit and Auditors) 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 pending litigations which shall have an effect on its financial positions in its Standalone Ind AS financial statements.
ii. The Company does not have any long term contracts for which provisions are required to be made.
iii. There has been no delay in transferring amounts required to be transferred to the Investor Education and Protection Fund by the Company,
Annexure A to the Auditors'' Report
(Referred to in paragraph 1 under the heading âReport on Other Legal and Regulatory Requirementsâ of our Report of even date for the year ended 31st March 2018)
(i) In respect of its Fixed Assets
a. The Company has maintained proper 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 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
c. The title deeds of immovable properties are held in the name of the Company.
(ii) In respect of inventories
In our opinion and according to the information and explanation given to us, we are informed that inventories have been physically verified by the management at reasonable intervals and 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 granted loan to its wholly owned subsidiary and not prejudicial to the company''s interest and interest and principal amount are receivable,
(iv) In respect of loans, investments, guarantees and securities, the provisions of section 185 and 186 of the Companies Act, 2013, are not applicable, as subsidiary is wholly owned,
(v) The Company has not accepted any deposits from the public within the meaning of Section 73 to Section 76 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 Government of India for the maintenance of cost records under section 148 (1) Companies Act, 2013 and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained being real estate construction business. However, we have not made a detailed examination of the records with a view to determine whether they are accurate or complete,
(vii) In respect to statutory dues
(a) According to the records of the Company, the undisputed statutory dues under Income 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, 2018 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 and other Statutory Dues as applicable to it, which have not been deposited with the appropriate authorities on account of any dispute
(viii) The Company has not defaulted in repayment of dues to any bank or financial institution during the year under review,
(ix) In our opinion and according to the information and explanations given to us the Company, has not raised any funds by way of Initial Public Offer or obtained term loans during the year.
(x) According to the information and explanation given to us, no material fraud by the Company or any fraud on company by its officers/ employees has been noticed or reported during the year.
(xi) According to the information and explanation given to us, The Company has paid/ provided for managerial remuneration in accordance with the requisites mandate by the provisions of section 197 r.w. schedule V of the Act,
(xii) In our opinion and according to the information and explanation given to us, the Company is not a Nidhi Company and therefore this clause is not applicable,
(xiii) According to the information and explanations given to us, the transactions with related parties are in compliance with section 177 and section 188, and details of such transactions have been disclosed in the Financial Statement as required by the applicable Accounting Standard,
(xiv) The Company has not made any preferential allotment of shares or Debentures during the year. Therefore, the provisions of this clause are not applicable
(xv) According to the information and explanations given to us, there are no non cash transactions with Directors or any persons connected with them during the year under review.
(xvi) According to the information and explanations given to us, the company is not required to get registered under section 45-IA of the Reserve Bank of India Act, 1934
ANNEXURE B TO THE INDEPENDENT AUDITOR''S REPORT OF EVEN DATE ON THE STANDALONE IND AS FINANCIAL STATEMENTS OF PRIME PROPERTY DEVELOPMENT CORPORATION LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (âthe Actâ)
We have audited the internal financial controls over financial reporting of PRIME PROPERTY DEVELOPMENT CORPORATION LIMITED (âthe Companyâ) as of March 31, 2018 in conjunction with our audit of the standalone Ind AS financial statements of the Company for the year ended on that date,
Management''s Responsibility for Internal Financial Controls
The Company''s Board of Directors is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company''s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013,
Auditors'' Responsibility
Our responsibility is to express an opinion on the Company''s internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the Guidance Note) issued by ICAI and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects,
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness,
Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor''s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company''s internal financial controls system over financial reporting,
Meaning of Internal Financial Controls over Financial Reporting
A company''s internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company''s internal financial control over financial reporting includes those policies and procedures that:-
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
(2) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and
(3) Provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company''s assets that could have a material effect on the financial statements,
Inherent Limitations of Internal Financial Controls over Financial Reporting
Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate,
Opinion
In our opinion, the Company has, in all material respects, an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India,
For H. N, Motiwalla & Co.
F R. No. 111949W
(H. N. Motiwalla)
Mumbai, Partner
Dated: May 30, 2018 Membership No. 011423
Mar 31, 2016
Report on the Financial Statements
We have audited the accompanying financial statements of PRIME PROPERTY DEVELOPMENT CORPORATION LIMITED (âthe companyâ),which comprise the Balance Sheet as at 31 March 2016, 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.
Managementâs 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 (âthe Actâ) 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.
Auditorâs 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, 2016;
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 23-(i) where the Company has self-estimated and provided MVAT liability of Rs. 5,00,00,000/- during the previous year pertaining to earlier years for FY 2006 to FY 2011. The tax assessment is pending by the authorities, any shortfall or excess tax liability determined on completion of assessment by the competent authority will be booked in the year of receipt of assessment order. This matter has been observed since past 2 years.
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, 2016 (âThe Orderâ) 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 pur poses 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, 2016, taken on record by the Board of Directors, none of the directors is disqualified as on 31 March, 2016, from being appointed as a director in terms of Section 164 (2) of the Act.
f) With respect to the 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 transferring amounts required to be transferred to the investor education and protection fund by the Company
(Referred to in paragraph 1 under the heading âReport on Other Legal and Regulatory Requirements" of our Report of even date for the year ended 31st March 2016)
(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.
c. The title deeds of immovable properties are held in the name of the Company.
(ii) In respect of inventories
In our opinion and according to the information and explanation given to us, we are informed that inventories have been physically verified by the management at reasonable intervals and 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), (b) and (c) are not applicable.
(iv) In respect of loans, investments, guarantees and securities, the provisions of section 185 and 186 of the Companies Act, 2013 have been complied, as applicable.
(v) The Company has not accepted any deposits from the public within the meaning of Section 73 to Section 76 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 Government of India for the maintenance of cost records under Section 148 (1) of the Companies Act, 2013, and are of the opinion that prima facie, 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 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, 2016 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 and other Statutory Dues as applicable to it, which have not been deposited with the appropriate authorities on account of any dispute.
(viii) The Company does not have any outstanding dues to any bank or financial institution during the year under review.
(ix) In our opinion and according to the information and explanations given to us the Company, the Company has not raised any funds by way of Initial Public Offer or obtained term loans during the year.
(x) 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.
(xi) According to the information and explanation given to us and based on our examination of the records of the Company, the Company has paid / provided for managerial remuneration in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V of the Act.
(xii) In our opinion and according to the information and explanation given to us, the Company is not a Nidhi Company. Therefore, the provisions of clause 3 (xii) of âthe Orderâ are not applicable to the Company.
(xiii) According to the information and explanations given to us, the transactions with related parties are in compliance with section 177 and section 188, as applicable, during the year under review.
(xiv) The Company has not made any preferential allotment of shares or Debentures during the year. Therefore, the provisions of clause 3 (xiv) of âthe Orderâ are not applicable to the Company.
(xv) According to the information and explanations given to us, there are no non cash transactions with Directors or any persons connected with them during the year under review.
(xvi) According to the information and explanations given to us, the company is not required to get registered under section 45-IA of the Reserve Bank of India Act, 1934
For VORA & ASSOCIATES
CHARTERED ACCOUNTANTS
(ICAI Firm Reg. No.: 111612W)
BHAKTI M. VORA
DATED: 28/05/2016 PARTNER
PLACE: MUMBAI (Membership No. 148837)
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, 2011
1. We have audited the attached Balance Sheet of PRIME PROPERTY
DEVELOPMENT CORPORATION LIMITED as at March 31, 2011 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 CompanyÃs 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 (AuditorÃs 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. 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,
2011, 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 Accounts :
ix. No depreciation is charged on the property located at Vile Parle
(W) being Capital Work in Progress and the Company has incurred
additional development expenditure on the said property.
xi. Gratuity payment is accounted on cash basis. Hence, no provision
is made for the same 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 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, 2011 and
(b) In the case of the Profit and Loss Account, of the LOSS, 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 2011.)
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;
(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 CompanyÃs 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. 18,65,04,595/- &
year-end balance is Rs. 6,86,05,000 /-.
(f) 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 loan 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.
(g) The Company is regular in repaying the principal amounts as
stipulated and has been regular in payment of interest as stipulated 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.
Further on the basis of our examination of the books and records of the
Company, we have neither come 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. 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. But during the year,
the Company has made net loss of Rs. 3,10,44,859/-. However, it has
incurred a cash loss of Rs. 2,55,60,023/- during the financial year
covered by our audit. No cash loss has been incurred during 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 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
PARTNER
(Membership No.30097)
Place: Mumbai
Dated : July 30, 2011
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)