Mar 31, 2017
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Prime Urban Development India Limited (âthe Company''), which comprise the Balance Sheet as at 31st March 2017, 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.
Managementâs Responsibility for the Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (âthe Actâ) with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these standalone 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 in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditor''s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Company''s Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2017 and its Profit and its cash flows for the year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2016 (âthe Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure A, a statement on the matters specified in the paragraph 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 it appears from our examination of those books;
(c) The Balance sheet, the Statement of profit and loss and the cash flow statement dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid Standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) On the basis of the written representations received from the directors as on 31 March 2017 taken on record by the Board of Directors, none of the directors is disqualified as on 31 March 2017 from being appointed as a director in terms of Section 164 (2) of the Act
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; and
(g) With respect to the other matters to be included in the Auditorâs Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 17.01 to the standalone financial statements;
(ii) In our opinion and as per the information and explanations provides to us, the Company has not entered into any long-term contracts including derivative contracts, requiring provision under applicable laws or accounting standards, for material foreseeable losses, and
(iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
(iv) The company has provided requisite disclosure in its standalone financial statements as to holdings as well as dealings in Specified Bank Notes during the period from 8th November, 2016 to 30th December, 2016 and these are in accordance with the books of accounts maintained by the Company - Refer Note 17.15 to the standalone financial statements.
The Annexure referred to in Independent Auditorsâ Report to the members of the Company on the standalone financial statements for the year ended 31 March 2017, we report that:
(i) (a) The Company has maintained proper records showing full particulars including quantitative details and situation of fixed assets.
(b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner which in our opinion, is reasonable, having regard to the size of the Company and the nature of its assets and no material discrepancies were noted on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
(ii) During the year, Inventories has been physically verified by the Management and there were no material discrepancies were noticed during such verification.
(iii) As informed to us, during the year the company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.
(v) The Company has not accepted any deposits from the public.
(vi) We have broadly reviewed the books of account maintained by the Company pursuant to sub-section (1) of Section 148 of the Companies Act, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained.
(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including provident fund, employees state insurance, income-tax, sales tax, value added tax, duty of customs, service tax, cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities.
As explained to us, the Company did not have any dues on account of duty of excise.
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees state insurance, income tax, sales tax, value added tax, duty of customs, service tax, cess and other material statutory dues were in arrears as at 31 March 2017 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 are following dues of which have not been deposited on account of dispute and the same being contested by the Company:
Name of the statute |
Nature of dues |
Amount Rupees in lakhs |
Period to which the amount re lates |
Forum where dispute is pending |
Income Tax Act, 1961 |
Income Tax |
535.61 |
A.Y 2009-10 |
Honâble High Court of Madras |
CST Act, 1956 |
Central Sales Tax |
4.67 |
F.Y. 1993-94 |
Sales Tax Appellate Tribunal |
(viii) During the year, Company has not defaulted in repayment of dues to Banks/financial institutions.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3 (ix) of the Order is not applicable.
(x) According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
(xi) According to the information and explanations give 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 to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi company. Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with them. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
For M.S.Jagannathan& Visvanathan
Chartered Accountants
ICAI FRN 001209S
N.Rajesh
Place: Mumbai Partner
Date : 24/05/2017 M.No.212417
Mar 31, 2016
Report on the Standalone Financial Statements
We have audited the accompanying standalone financial statements of Prime Urban Development India Limited (âthe Company''), which comprise the Balance sheet as at 31st March 2016, 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 Standalone Financial Statements
The Company''s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ("the Actâ) with respect to the preparation and presentation of these standalone financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.
Auditorsâ Responsibility
Our responsibility is to express an opinion on these standalone financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and the disclosures in the financial statements. The procedures selected depend on the auditorâs judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company''s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of the accounting policies used and the reasonableness of the accounting estimates made by the Companyâs Directors, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at 31 March 2016 and its profit and its cash flows for the year ended on that date.
Report on other Legal and Regulatory Requirements
1. As required by the Companies (Auditorâs Report) Order, 2016 ("the Orderâ) issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the Annexure A, a statement on the matters specified in the paragraph 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 it appears from our examination of those books;
(c) The Balance sheet, the Statement of profit and loss and the cash flow statement dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid Standalone financial statements comply with the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014;
(e) On the basis of the written representations received from the directors as on 31 March 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 adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer to our separate report in âAnnexure Bâ; 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) Rules, 2014, in our opinion and to the best of our information and according to the explanations given to us:
(i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements - Refer Note 16.01 to the financial statements;
(ii) In our opinion and as per the information and explanations provides to us, the Company has not entered into any long-term contracts including derivative contracts, requiring provision under applicable laws or accounting standards, for material foreseeable losses, and
(iii) There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund by the Company.
The Annexure referred to in Independent Auditorsâ Report to the members of the Company on the standalone financial statements for the year ended 31 March 2016, we report that:
(i) (a) The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets,
(b) The Company has a regular programme of physical verification of its fixed assets by which fixed assets are verified in a phased manner which in our opinion, is reasonable, having regard to the size of the Company and the nature of its assets and no material discrepancies were noted on such verification.
(c) According to the information and explanations given to us and on the basis of our examination of the records of the Company, the title deeds of immovable properties are held in the name of the Company.
(ii) During the year Inventories has been physically verified by the Management and there were no material discrepancies were noticed during such verification.
(iii) As informed to us, during the year the company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 189 of the Companies Act.
(iv) In our opinion and according to the information and explanations given to us, the Company has complied with the provisions of section 185 and 186 of the Act, with respect to the loans and investments made.
(v) The Company has not accepted any deposits from the public.
(vi) The Central Government has not prescribed the maintenance of cost records under section 148(1) of the Act, for any of the businesses rendered by the Company.
(vii) (a) According to the information and explanations given to us and on the basis of our examination of the records of the Company, amounts deducted/ accrued in the books of account in respect of undisputed statutory dues including provident fund, employees state insurance, income-tax, sales tax, value added tax, duty of customs, service tax, cess and other material statutory dues have been regularly deposited during the year by the Company with the appropriate authorities.
As explained to us, the Company did not have any dues on account of duty of excise.
According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, employees state insurance, income tax, sales tax, value added tax, duty of customs, service tax, cess and other material statutory dues were in arrears as at 31 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 are following dues of which have not been deposited on account of dispute and the same being contested by the Company:
Name of the statute |
Nature of dues |
Amount Rupees in lakhs |
Period to which the amount relates |
Forum where dispute is pending |
Income Tax Act, 1961 |
Income Tax |
551.09 |
AY 2009-10 |
Honâble High Court of Madras |
CST Act, 1956 |
Central Sales Tax |
4.67 |
F.Y. 1993-94 |
Sales Tax Appellate Tribunal |
(viii) During the year, Company has not defaulted in repayment of dues to Banks or financial institutions.
(ix) The Company did not raise any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3 (ix) of the Order is not applicable.
(x) According to the information and explanations given to us, no material fraud by the Company or on the Company by its officers or employees has been noticed or reported during the course of our audit.
(xi) According to the information and explanations give 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 to the Act.
(xii) In our opinion and according to the information and explanations given to us, the Company is not a nidhi company Accordingly, paragraph 3(xii) of the Order is not applicable.
(xiii) According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations give to us and based on our examination of the records of the Company, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.
(xv) According to the information and explanations given to us and based on our examination of the records of the Company, the Company has not entered into non-cash transactions with directors or persons connected with him. Accordingly, paragraph 3(xv) of the Order is not applicable.
(xvi) The Company is not required to be registered under section 45-IA of the Reserve Bank of India Act 1934.
For M.S. JagannathanS Visvanathan
Chartered Accountants
ICAI FRN 001209S
N.Rajesh
Place: Mumbai Partner
Date: 06/05/2016 M.No.212417
Mar 31, 2015
We have audited the accompanying financial statement of Prime Urban
Development India Limited ('the Company') which comprises the Balance
sheet as at 31 st March, 2015, the Statement of Profit and Loss and the
cash flow statement for the year then ended, and a summary of the
significant accounting policy and other explanatory information.
Management's Responsibility for the Financial Statements .
The Company's Board of Directors is responsible for the matters
stated in section 134 (5) of the Companies Act, 2013 ("the
Act")with respect to the preparation 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 provisions of the act for safeguarding the assets of the
company and for preventing and detecting the frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgment and estimates that are reasonable and
prudent; and design, implementation and maintenance of internal
control, that were operating effectively for ensuring the accuracy and
completeness of the accounting records, relevant to the preparation and
presentation of 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 thereunder.
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 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 companies 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 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 31st March, 2015;
(b) in the case of the Statement of Profit and Loss, of the Profit of
the Company for the year ended on that date, and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of
our audit.
-(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books.
(c) The Balance Sheet, Statement of Profit and Loss, and the Cash Flow
Statement dellt 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 the Cash Flow Statement comply with the Accounting Standards
referred to in Section 133 of the Companies Act, 2013, read with rule 7
of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on 31st March, 2015 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2015
from being appointed as a director in terms of sub section (2) of
section 164 of the Companies Act, 2013.
i. The Company has disclosed the impact of pending litigations on its
financial position in its financial statements,
ii. In our opinion and as per the information and explanations provides
to us, the Company has not entered into any long-term contracts including derivative contracts, requiring provision under applicable laws or
accounting standards, for material foreseeable losses, and
iii. There has been no delay in transferring the amounts, required to
be transferred, to the Investor Education and Protection Fund by the
Company.
Annexure to the Auditor's Report
The Annexure referred to in paragraph 1 of Report on Other Legal and
Regulatory Requirements of our report of even date to the members of
Prime
Urban Development India Limited for the year ended 31st March 2015. We
report that:
(i) (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets
(b) As explained to us, the fixed assets are physically verified in a
phased periodical manner, which, in our opinion, is reasonable, having
regard to the size of the Company and the nature of its assets and no
material discrepancies were noted on such verification;
(ii) (a) The Inventory has been Physically verified during the year by
the Management.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the company is maintaining proper records of inventories
and no material discrepancies were noticed on physical verification as
compared to the book records.
(iii) As informed to us, during the year the company has not granted
any loans, secured or unsecured to companies, firms or other parties
covered in the register maintained under section 189 of the Companies
Act. Accordingly the sub-clauses (a) and (b) are not applicable to the
company.
(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 the nature of its business, for the
purchase of inventory and fixed assets and for the sale of goods and
services. During the course of our audit, we have not observed any
continuing failure to correct major weakness in internal control
system.
(v) According to the information and explanations given to us, the
Company has not accepted any deposits in terms of directives issued by
Reserve Bank of India and the provisions of Section 73 to 76 or any
other relevant provisions of the Companies Act and the rules framed
there under.
' (vi) We have broadly reviewed the books of account maintained by
the Company pursuant sub-section (1) of Section 148 of the Companies
Act, and are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained.
(vii) (a) The company is regular in depositing undisputed statutory
dues including provident fund, employees' state insurance, income-tax,
sales-tax, service tax, duty of customs, duty of excise, value added
tax, cess and any other statutory dues with the appropriate authorities
and we have been informed that there are no arrears of outstanding
statutory dues as at the last day of the financial year under audit for
a period of more than six months form the date they became payable.
(b) According to the information and explanations given to us, there
are following dues of which have not been deposited on account of
dispute and the same is being contested by the Company:
Name of the Statute Nature of the Dues Amount in Lacs
Income Tax Act,1961 Income Tax 551.09
"CST Act, 1956 Central Sales tax 4.87
Name of the Statute Period to which Forum where
the amount relates dispute is pending
Income Tax Act 1961 A.Y.2009 -10 Hon'ble High ' Court of
Madras
CST ACt 1956 F.Y.1993 -94 Sales Tax Appellate
Tribunal
(c) In our opinion and according to the information and explanations
given to us, amounts required to be transferred to Investor Education
and Protection Fund in accordance with the relevant provisions of the
Companies Act, 1956 (1 of 1956) and rules made there under have been
transferred to such fund within time.
(viii) The Company does not have accumulated losses as at 31st March
2015. The Company has not incurred any cash loss during the financial
year covered by our audit and Company had incurred cash loss of
Rs.50.47 lakhs during immediately preceding financial year
(ix) Based on our audit procedures and according to the information,
the company has not defaulted in repayment of dues to Bank(s) or
Financial Institution(s)
(x) During the year, the Company has not given guarantees for loans
taken by others from bank(s) or financial institution(s)
(xi) In our opinion and according to the information and explanations
given to us, the Company has not borrowed any Term Loan(s) during the
year.
(xii) According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
For M.S.Jagannathan & Visvanathan
Chartered Accountants
ICAIFRN 001209S
N.Rajesh
Place: Mumbai Membership No.212417
Date: 29/05/2015 Partner
Mar 31, 2014
We have audited the accompanying financial statement of Prime Urban
Development India Limited (''the Company'') which comprises the
Balance sheet as at 31st March, 2014, the Statement of Profit and Loss
and the cash flow statement for the year then ended, and a summary of
the significant accounting policy and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act") 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 the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgement, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the Company''s internal control. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by the 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 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 31 st March, 2014;
(b) in the case of the Statement of Profit and Loss, of the Loss of the
Company for the year ended on that date, and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003
("the Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Companies Act, 1956 and
sub-section (11) of Section 143 of the Companies Act, 2013, we give in
the Annexure a statement on the matters specified in paragraphs 4 and 5
of the Order.
2. As required by Section 227(3) of the Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company so far as it appears from our examination of
those books and the report of the accounts of the branch offices
audited by firm of Chartered Accountant(s) has been forwarded to us as
required by clause (c) of Sub-section (3) of Section 228 and have been
dealt with in preparing our report in the manner considered necessary
by us.
(c) The Balance Sheet, Statement of Profit and Loss, and the 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 Lbss,
and the Cash Flow Statement comply with the Accounting Standards
notified under 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 the written representations received from the
directors as on 31st March, 2014 taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2014
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956 and
sub-section (2) of Section 164 of the Companies Act, 2013.
Annexure to the Auditor''s Report
The Annexure referred to in paragraph 1 of Report on Other Legal and
Regulatory Requirements of our report of even date to the members of
Prime Urban Development India Limited for the year ended 31st March
2014. We report that:
i) a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) As explained to us, the fixed assets are physically verified in a
phased periodical manner, which, in our opinion, is reasonable, having
regard to the size of the Company and the nature of its assets and no
material discrepancies were noted on such verification.
c) During the year, the Company has not disposed off a substantial part
of its fixed assets, which affect the going concern status of the
Company.
ii) a) The Inventory has been physically verified during the year by
the Management. In our opinion, the frequency of verification is
reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c) The company has maintained proper records of inventory. As explained
to us, no material discrepancies were noticed on physical verification
of inventories as compared to the book records.
iii) a) The Company has not granted any loans secured or unsecured to
firms, companies or other parties covered in the Register maintained
under section 301 of the Companies Act, 1956 and Section 189 of the
Companies Act, 2013 and hence sub clauses b, c & d are not
applicable.
b) The Company has taken advance from two parties covered in the
Register maintained under section 301 of the Companies Act, 1956 and
Section 189 of the Companies Act, 2013 during the pervious year(s) and
outstanding at the year-end was Rs.516.96 lacs and maximum outstanding
during the year was Rs.517.40 lacs.
c) In our opinion and according to the information and explanations
given to us, other terms and conditions on which such loans have been
taken are prima facie not prejudicial to the interest of the company.
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory and fixed assets and with
regard to the sale of goods and services. During the course of our
audit, we have not observed any continuing failure to correct major
weakness in internal control system.
v) a) According to the information explanations given to us, we are of
the opinion that the transactions that made in pursuance of contracts
or arrangements, that need to be entered in the register maintained
under section 301 of the Companies Act, 1956 and Section 189 of the
Companies Act, 2013 have been so entered, b) In our opinion, and
according to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements referred
to in (v)(a) above and exceeding the value of rupees five lakhs 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.
vi) In our opinion and according to the information and explanations
given to us the company has complied with the provisions of section 58A
and 58AA of the Companies Act, 1956 and the companies (Acceptance of
Deposits) Rules 1975 with regard to the deposits accepted from the
public. No order has been passed by the National Company Law Tribunal
or Reserve Bank of India or any court or any other Tribunal.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) According to the information and explanations given to us, the
Central Government has not prescribed the mainte- nance of cost records
under Section 209(1 )(d) of the Companies Act, 1956 and Section 128
read with Section 2(13) of the Companies Act, 2013 in respect of the
business activities carried out by the Company.
ix) a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident
Fund, Employees'' State Insurance, Income Tax, Investor Education
protection Fund, Value Added Tax, Wealth Tax, Customs Duty, Excise
Duty, Cess and other material statutory dues, b) According to the
information and explanations given to us, no undisputed amounts payable
in respect of income tax, wealth tax, sales tax, customs duty, excise
duty and Cess were in arrears, at the year end for a period of more
than six months from the date they became payable.
c) According to the information and explanations given to us, there are
following dues of which have not been deposited on account of dispute
and the same is being contested by the Company.
Srl. Name of the Nature of Amount Period to which Forum where
No. Statute the Dues (in Lacs) the amount dispute is pending
relates
1. Income tax Income tax 44.44 A.Y.2002-03 Company circle,
Act,1961 Tirupur Hon''ble
High Court of
551.09 A. Y.2009-10 Madras
2. CST Act, 1956 Central 4.87 F.Y.1993-94 Sales AnneMate
Sales Jounal
Tax
x) The Company does not have accumulated losses as at 31st March 2014.
The Company has incurred cash loss during the financial year covered by
our audit was Rs. 50.47 lacs and hence the Company has incurred cash
loss of 154.42 lacs during the immediately preceding financial year.
xi) Based on our audit procedures and according to the information, the
company has not defaulted in repayment of dues to Bank(s).
xii) In our opinion and according to the information and explanations
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.
xiii) In our opinion, the company is not a chit fund or a Nidhi/Mutual
benefit fund/ Society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to
the Company.
xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report)
order, 2003 are not applicable to the Company.
xv) During the year, the Company has not given guarantees for loans
taken by others from banks or financial institutions.
xvi) In our opinion and according to the information and explanations
given to us, the Company has not borrowed any term loan during the
year.
xvii) 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 time basis have been used for long term
investments.
xviii) The company has issued preferential allotment of warrants to
promoters with an option to exercise to convert the warrants into
equity shares in the future.
xix) The company has not issued any debentures during the year.
xx) The company has not made any Public Issues during the year.
xxi) According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
For M.S.Jagannathan & Visvanathan
Chartered Accountants
FRN 001209S
N.Rajesh
Mumbai Partner
09.05.2014 (Membership No.212417)
Mar 31, 2013
Report on the Financial Statements
We have audited the accompanying financial statement of Prime Urban
Development India Limited (''the Company'') which comprise the Balance
sheet as at 31st March, 2013, the Statement of Profit and Loss and the
cash flow statement for the year then ended, and a summary of the
significant accounting policy and other explanatory information. -
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 ("the Act"). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Auditor''s Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with the
ethical requirements and plan and perform the audit to obtain
reasonable assurance about w! ether l; e financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and the disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risl''s of nMterial misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor cc lskiers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by the 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 statement1- 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 31st March, 2013;
(b) in the case of the Statement of Profit and Loss, of the Loss of the
Company for the year ended on that date, and
(c) in the case of the Cash Flow Statement, of the cash flows of the
Company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of {he Act, we report that:
(a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purposes of our
audit.
(b) In our cpr.ion, proper books of account an required by law have
been kept by the Company so i !r as it appears from ou; examination of
those books.
(c) The Balance Sheet, Statement of Profit and Loss, and the 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 the Cash Flow Statement comply with the Accounting Standards
referred to in sub-section (3C) of section 211 of the Act.
(e) On the basis of the written representations received from the
directors, as on 31s'' March, 2013, taken on record by the Board of
Directors, none of the directors is disqualified as on 31st March, 2013
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Act.
Annexure to the Auditor''s Report
The Annexure referred in our report to the members of Prime Urban
Development India Limited for the year ended 31st March 2013, we report
that:
i) a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) As explained to us, the fixed assets are physically verified in a
phased manner, which, in our opinion, is reasonable, having regard to
the size of the Company and the nature of its assets and no material
discrepancies were noted on such verification.
c) During the year, the fixed assets disposed off during the year were
not substantial, and therefore, do not affect the going concern
assumption.
ii) a) The Inventory has been physically verified during the year by
the Management. In our opinion, the frequency of verification is
reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c) The company has maintained proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
iii) a) The Company has not granted any loans secured or unsecured to
firms, companies or other parties covered in the register maintained
under section 301 and hence sub clauses b, c & d are not applicable.
b) The Company has taken advance from two parties during the pervious
year and outstanding at the year end Rs.. 51,740 thousands and maximum
outstanding during the year was Rs.. 53,199 thousands.
c) In our opinion and according to the information and explanations
given to us, other terms and conditions on which such loans have been
taken from the subsidiary company covered in the Register maintained
under section 301 of the Act are prima facie not prejudicial to the
interest of the company;
iv) In our opinion and according to the information and explanations
given to us, there is an adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
Audit no major weakness has been noticed in the internal controls.
v) a) According to the information explanations given to us, we are of
the opinion that the transactions that need to be entered into the
register maintained under section 301 of the Companies Act, 1956 have
been so entered. b) In our opinion, and according to the information
and explanations given to us, the transactions made in pursuance of
contracts and arrangements referred to in (v)(a) above and exceeding
the value of rupees five lakhs 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.
vi) In our opinion and according to the information and explanations
given to us the company has complied with the provisions of section 58A
and 58AA of the Companies Act, 1956 and the companies (Acceptance of
Deposits) Rules 1975 with regard to the deposits accepted from the
public. No order has been passed by the National Company Law Tribunal
or Reserve Bank of India or any court or any other Tribunal.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) The Central Government of India has not prescribed the
maintenance of cost records under Section 209(1)(d) of the Act for the
business activities carried out by the Company.
ix) a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Employees'' State Insurance, Income Tax, Investor Education protection
Fund, Sales Tax, Wealth Tax, Customs Duty, Excise Duty, Cess and other
material statutory dues. b) According to the information and
explanations given to us, no undisputed amounts payable in respect of
income tax, wealth tax, sales tax, customs duty, excise duty and Cess
were in arrears, at the year end for a period of more than six months
from the date they became payable.
c) According to the information and explanations given to us, there are
following dues of which have not been deposited on account of dispute
and the same is being contested by the Company.
Sri. Name of the Nature of the
Dues Amount Period to which
the Forum where
dispute is
Statute (Rupees amount relates pending
No. Thous
ands)
1. Income tax Income tax 4,444 A.Y.2002-03 Company
circle,
Tirupur
Act,1961 Hon''ble High
Court of
55,109 A.Y.2009-10 Madras
2. CST Act, 1956 Central Sales
Tax 487 F.Y.1993-94 Sales Tax
Appellate
Tribunal
x) The Company does not have accumulated losses as at 31st March 2013.
The Company has incurred cash loss of Rs. 15,442 thousands during the
financial year covered by our audit and the Company has incurred cash
loss of Rs. 28,714 thousands during the immediately preceding financial
year.
xi) Based on our audit procedures and according to the information, the
company has not defaulted in repayment of dues to Financial
Institutions, Banks.
xii) In our opinion and according to the information and explanations
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.
xiii) In our opinion, the company is not a chit fund or a Nidhi/Mutual
benefit fund/ Society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor''s Report) Order, 2003 are not applicable to the
Company.
xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor''s Report) order,
2003 are not applicable to the Company.
xv) During the year, the Company has not given guarantees for loans
taken by others from banks or financial institutions.
xvi) In our opinion and according to the information and explanations
given to us, the Company has not borrowed any term loan during the
year.
xvii) According tn 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 time basis have been used for long term
investments.
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.
xix) The company has not issued any debentures during the year.
xx) The company has not made any Public Issues during the year.
xxi) According to the information end expirations given to us, no
material fraud on or by the Company has been noticed or reported during
the course of our audit.
For M.S.Jagannathan & Visvanathan
Chartered Accountants
FRN001209S
M.J.Vijayaraaghavan
Mumbai Partner
17.05.2013 (Membership No.7534)
Mar 31, 2011
1. We have audited the attached Balance Sheet of M/s.PRIME URBAN
DEVELOPMENT INDIA LIMITED (Formerly known as PRIME TEXTILES LIMITED) as
at 31 st March 2011 and also the Profit and Loss Account and the cash
flow statement for the year ended on that date annexed thereto
(collectively referred as the 'financial statement'). 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 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 the management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
3. As required by the Companies (Auditor's Report) Order, 2003 and as
amended by the Companies (Auditor's Report) Amendment order, 2004
issued by the Central Government of India in terms of sub-section (4A)
of section 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 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 purposes 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;
iii) The Financial Statements dealt with by this report are in
agreement with the books of account;
iv) In our opinion, the Financial Statements dealt with by this report
comply with the accounting standards referred to in sub- section (3C)
of section 211 of the Companies Act, 1956 and rules framed there under;
v) On the basis of written representations received from the directors,
as on 31st March,2011 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31st March 2011
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956;
5. In our opinion, and to the best of our information and according to
the explanations given to us, the said accounts read together
Significant Accounting Policies and Notes to Accounts in Schedule "18"
and those appearing elsewhere in the accounts 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
accepted in India:
a) In the case of Balance Sheet, of the state of affairs of the company
as at 31 st March 2011
b) In the case of Profit and Loss account Profit of the company for the
year ended on that date; and
c) In case of the cash flow statement, of the cash flows for the year
ended on that date.
Annexure referred in our report of even date of the accounts for the
year ended 31st March 2011 of M/s. PRIME URBAN DEVELOPMENT INDIA
LIMITED. (Formerly known as Prime Textiles Limited)
On the basis of such checks as we considered appropriate during the
course of audit, we state that:
i a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) As explained to us, the fixed assets are physically verified in a
phased manner, which, in our opinion, is reasonable, having regard to
the size of the Company and the nature of its assets and no material
discrepancies were noted on such verification.
c) During the year, there was no sale of substantial part of fixed
assets and hence the going concern of the Company is not affected.
ii) a) The Inventory has been physically verified during the year by
the Management. In our opinion, the frequency of verification is
reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c) The company has maintained proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
iii) a) The Company has not granted any loans secured or unsecured to
firms, companies or other parties covered in the register maintained
under section 301 and hence sub clauses b, c,& d are not applicable.
b) The company has taken advance from a subsidiary company ATL Textile
Processors Limited, during previous year and outstanding at the year
end was Rs. 53,254 thousands, maximum outstanding during the year was
Rs. 53,254 thousands.
c) In our opinion and according to the information and explanations
given to us, other terms and conditions on which such loans have been
taken from the subsidiary company covered in the Register maintained
under section 301 of the Act are prima facie not prejudicial to the
interest of the company;
iv) In our opinion and according to the explanation and information
given to us, there is an adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
Audit no major weakness has been noticed in the internal controls.
v) a) According to the information explanations given to us, we are of
the opinion that the transactions that need to be entered into the
register maintained under section 301 of the Companies Act, 1956 have
been so entered.
b) In our opinion and according to the information and explanations
given to us, the 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 rupees five lakhs 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.
vi) In our opinion and according to the information and explanations
given to us the company has complied with the provisions of section 58A
and 58AA of the Companies Act, 1956 and the Companies (Acceptance of
Deposits) Rules 1975 with regard to the deposits accepted from the
public. No order has been passed by the National Company Law Tribunal
or Reserve Bank of India or any court or any other Tribunal.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) We have broadly reviewed the Books of Account relating to
materials, labour and other items of cost 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 we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained.
ix) a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Employees' State Insurance, Income Tax, Investor Education protection
Fund, Sales Tax, Wealth Tax, Customs Duty, Excise Duty, Cess and other
material statutory dues.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, customs duty, excise duty and cess were in arrears, at the year
end for a period of more than six months from the date they became
payable.
c) According to the information and explanations given to us, there are
following dues of which have not been deposited on account of dispute
and the same is being contested by the Company.
SI. Name of the Statute Nature of the Dues Amount
No. Rs. thousands
1. Income Tax Act 1961 Income tax 4,143
2. CST Act, 1956 Central Sales Tax 487
Name of the Statute Period to which the Forum where dispute
amount relates is pending
Income Tax Act 1961 A.Y. 2002-03 Hon'ble High
Court of Madras
CST Act, 1956 F.Y. 1993-94 Sales Tax
Appellate Tribunal
x) The Company does not have accumulated losses as at 31st March 2011
The Company has not incurred cash loss during the financial year
covered by our audit and the Company has incurred cash loss of Rs.
1,76,319 thousands during the immediately preceding financial year.
xi) Based on our audit procedures and according to the information, the
company has not defaulted in repayment of dues to Financial
Institutions, Banks.
xii) In our opinion and according to the information and explanations
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.
xiii) In our opinion, the company is not a Chit Fund or a Nidhi /
Mutual Benefit fund/ Society. Therefore, the provisions of clause 4
(xiii) of the Companies (Auditor's Report) Order, 2003 are not
applicable to the Company.
xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor's Report) order,
2003 are not applicable to the Company.
xv) During the year, the Company has not given guarantees for loans
taken by others from banks.
xvi) In our opinion and according to the information and explanations
given to us, the Company has not borrowed any term loan during the
year.
xvii) 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 time basis have been used for long term
investments.
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.
xix) The company has not issued any debentures during the year.
xx) The company has not made any Public Issues during the year.
xxi) No fraud on/or by the Company has been noticed or reported during
the period course of our Audit.
For M.S Jagannathan & Visvanathan
Chartered Accountants
FRN 001209S
M.J. Vijayaraaghavan
Partner
Membership Number: 7534
Place : Mumbai
Date : 30.06.2011
Mar 31, 2010
1. We have audited the attached Balance Sheet of M/s.PRIME URBAN
DEVELOPMENT INDIA LIMITED (Formerly known as PRIME TEXTILES LIMITED) as
at 31 st March 2010 and also the Profit and Loss Account and the cash
flow statement for the year ended on that date annexed thereto
(collectively referred as the financial statement). These financial
statements are the responsibility of the Companys management. Our
responsibility is to express an opinion on these financial statements
based onouraudit.
2. We conducted our audit in accordance with auditing standards
generally accepted in India. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free 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 a reasonable
basis for our opinion.
3. As required by the Companies (Auditors Report) Order, 2003 and as
amended by the Companies (Auditors Report) Amendment order, 2004
issued by the Central Government of India in terms of sub-section (4A)
of section 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.
Reference is invited to:
Without qualifying our opinion we draw attention to note 15 of part B -
notes on accounts schedule 18 regarding the Scheme of Arrangement had
financial restructuring exercise and a Scheme of Arrangement under
sections 391-394 of the Companies Act, 1956. In terms of the Scheme,
the Company restated its free hold land by crediting the resulting
accretion value of Rs. 24,74,868 thousands to the Business
Reconstruction Reserve (BRR) Account. The Scheme has inter alia, has
expenses / impairment and other adjustments from Business
Reconstruction Reserve. The Scheme was approved by the Honble High
Court of Madras on 22nd September, 2010 and the appointment date being
1 st of April, 2009. The Company has followed the accounting
treatmentasprescribedunderthe Scheme approved by HonbleHigh Court of
Madras.
4. Furtherto our comments in the Annexure referred to 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
thepurposesofouraudit;
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.
iii) The Financial Statements dealt with by this report are in
agreement with the books of account (and with the audited returns from
the Branches);
iv) In our opinion, the Financial Statements 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 representations received from the directors,
as on 31st March,2010 and taken on record by the Board of Directors, we
report that none of the directors is disqualified as on 31st March 2010
from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956;
5. In our opinion, and to the best of our information and according to
the explanations given to us, the said accounts read together
Significant Accounting Policies and Notes to Accounts in Schedule "18"
and those appearing elsewhere in the accounts 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
accepted in India:
a) In the case of Balance Sheet, of the state of affairs of the company
as at 31 st March 2010
b) In the case of Profit and Loss account LOSS of the company for the
year ended on that date; and
c) In case of the cash flow statement, of the cash flows for the year
ended on that date;
Annexure referred in our report of even date of the accounts for the
year ended 31st March 2010 of M/s. PRIME URBAN DEVELOPMENT INDIA
LIMITED.
On the basis of such checks as we considered appropriate during the
course of audit, we state that:
i a) The company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
assets.
b) As explained to us, the fixed assets are physically verified in a
phased manner, which, in our opinion, is reasonable, having regard to
the size of the Company and the nature of its assets and no material
discrepancies were noted on such verification.
c) During the year, there was no sale of substantial part of fixed
assets and hence the going concern of the Company is not affected.
ii) a) The Inventory has been physically verified during the year by
the Management. In our opinion, the frequency of verification is
reasonable.
b) The procedures of physical verification of inventories followed by
the management are reasonable and adequate in relation to the size of
the company and the nature of its business.
c) The company has maintained proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
iii) a) The Company has not granted any loans secured or unsecured to
firms, companies or other parties covered in the register maintained
under section 301 and hence sub clauses b, c,& d are not applicable.
b) Thecompany has taken advance from a subsidiary company ATL Textile
Processors Limited, during previous year and outstanding at the year
end was Rs. 52,447 thousands, maximum outstanding during the year was
Rs.52,465 thousands.
c) In our opinion and according to the information and explanations
given to us, other terms and conditions on which such loans have been
taken from the subsidiary company covered in the Register maintained
under section 301 of the Act are prima facie not prejudicial to the
interest of the company;
iv) In our opinion and according to the explanation and information
given to us, there is an adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and with
regard to the sale of goods and services. During the course of our
Audit no major weakness has been noticed in the internal controls.
v) a) According to the information explanations given to us, we are of
the opinion thatthe transactions that need to be entered into the
register maintained under section 301 of the CompaniesAct, 1956 have
been so entered. b) In our opinion and according to the information
and explanations given to us, the 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
rupees five lakhs 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.
vi) In our opinion and according to the information and explanations
given to us the company has complied with the provisions of section
58Aand 58AAof the CompaniesAct, 1956 and the Companies (Acceptance of
Deposits) Rules 1975 with regard to the deposits accepted from the
public. No order has been passed by the National Company Law Tribunal
or Reserve Bank of India or any court or any other Tribunal.
vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
viii) We have broadly reviewed the Books of Account relating to
materials, labour and other items of cost 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 we are of the opinion that prima facie the prescribed
accounts and records have been made and maintained.
ix) a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident Fund,
Investor Education protection Fund, Employees State Insurance, Income
Tax, Sales Tax, Wealth Tax, Customs Duty, Excise Duty, Cess and other
material statutory dues with the appropriate authorities.
b) According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, wealth tax, sales
tax, customs duty, excise duty and cess were in arrears, at the year
end for a period of more than six months from the date they became
payable.
c) According to the information and explanations given to us, there are
following dues of which have not been deposited on account of dispute
and the same is being contested by the Company.
Sl. Name of the
Statute Nature of
the Dues Amount Period to
which the Forum where
dispute
No. Rs.
thousands amount
relates is pending
1. Income Tax
Act 1961 Income tax 4,143 A.Y. 2002-03 Honble High
Court of Madras
2. CST Act,
1956 Central Sales Tax 487 F.Y. 1993-94 Sales Tax
Appellate Tribunal.
x) The Company does not have accumulated losses as at 31st March 2010
The Company has incurred cash loss of Rs. 1,76,319 thousands during the
financial year covered by our audit and the Company has incurred cash
loss of Rs. 47,300 thousands during the immediately preceding financial
year.
xi) Based on our audit procedures and according to the information, the
company has not defaulted in repayment of dues to Financial
Institutions/Banks.
xii) In our opinion and according to the information and explanations
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.
xiii) In our opinion, the company is not a Chit Fund or a Nidhi /
Mutual Benefit fund/ Society. Therefore, the provisions of clause 4
(xiii) of the Companies (Auditors Report) Order, 2003 are not
applicable to the Company.
xiv) In our opinion, the Company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditors Report) order,
2003 are not applicable to the Company.
xv) During the year, the Company has not given guarantees for loans
taken by others from banks.
xvi) In our opinion and according to the information and explanations
given to us, the Company has not borrowed any term loan during the
year.
xvii) 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 time basis have been used for long term
investments.
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.
xix) The company has not issued any debentures during the year.
xx) The company has not made any Public Issues during the year.
xxi) No fraud on/or by the Company has been noticed or reported during
the period course of our Audit.
For M.S.Jagannathan & Visvanathan
Chartered Accountants
FRN 001209S
M.J.Vijayaraaghavan
Place : Tirupur Partner
Date : 12.11.2010 Membership Number: 7534
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