Mar 31, 2014
1. We have audited the accompanying financial statements of LOK
HOUSING AND CONSTRUCTIONS LIMITED ("the Company"), which comprise the
Balance Sheet as at March 31, 2014, and the Statement of Profit and
Loss and Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and other explanatory information.
Management''s Responsibility for the Financial Statements.
2. 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.
Auditors'' Responsibility
3. 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.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor''s judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the
Company''s preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management, as well as evaluating the overall
presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. 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, subject to the Company having not made
provision for additional consideration / compensation claimed by Mr.
Suresh Thanawala and others, a secured creditor for land development
rights as the same being disputed and under negotiation, the amount
there of being unascertainable, give a true and fair view;
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) in the case of the Statement of Profit and Loss, of the profit for
the year ended on that date; and
c) in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
7. 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.
8. As required by section 227(3) of the Act, we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion, the Balance Sheet, Statement of Profit and Loss, and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956 read with The
General Circular 15/2013 dated 13th September, 2013 of the Ministry of
Corporate Affairs in respect of section 133 of the Companies Act, 2013;
e) on the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
The Annexure referred to in paragraph 7 of the Our Report of even date
to the members of LOK HOUSING AND CONSTRUCTIONS LIMITED on the accounts
of the Company for the year ended 31st March, 2014.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit, we report that:
la. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
lb. As per the information and explanations given to us physical
verification of fixed assets has been carried out at regular intervals
and we have been informed that no material discrepancies were noticed
on such verification. In our opinion, the frequency of verification is
reasonable, having regard to the size of the Company and nature of its
fixed assets.
lc. During the year, the Company has not disposed of any substantial /
major part of fixed assets.
2a. As per the information furnished, the inventories have been
physically verified during the year by the management. In our opinion,
having regard to the nature and location of stocks, the frequency of
the physical verification is reasonable.
2b. In our opinion and according to the information and explanations
given to us the procedure for physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of business.
2c. The Company is maintaining proper records of inventory. In our
opinion, discrepancies noticed on physical verification of stocks were
not material in relation to the operations of the Company and the same
have been properly dealt with in the books of account.
3a. As per the information furnished, the Company has outstanding
unsecured advances given aggregating to Rs. 0.65 lacs (previous year Rs.
6.49 lacs) to 1 party (previous year 3 party) listed in the register
maintained under Section 301 of the Companies Act, 1956, the terms of
which are prima facie not prejudicial to the interest of the Company.
3b. As per the information furnished, the Company has not taken loans
(previous year nil) from any party ( previous year no party) listed in
the register maintained under Section 301 of the Companies Act, 1956,
the terms of which are prima facie not prejudicial to the interest of
the Company.
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 the nature of its
business with regard to purchase of inventory and fixed assets and for
the sale of goods. During the course of our audit, no major weakness
has been noticed in the internal control procedures.
5a. Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the transactions that need to be entered into the register
maintained under Section 301 have been so entered.
5b. In our opinion and according to the information and explanations
given to us, there are no transactions exceeding the value of Rs. five
lacs each which have been made at prices which are unreasonable having
regard to prevailing market prices at the relevant time.
6. In our opinion, the Company has not accepted any deposits during
the year from the public within the meaning of the provisions of
Section 58A and 58AA of the Companies Act, 1956 and rules made there
under. Hence, the Clause (vi) of the order is not applicable.
7. The Company has an adequate internal audit system commensurate with
the size of the Company and the nature of its business. However the
same need to be strengthened.
8. As informed to us, the maintenance of cost records has been
prescribed by the Central Government under section 209(l)(d) of the
Companies Act,1956, in respect of the activities carried on by the
Company. On our verification and as per information and explanation
given to us such accounts and records have been made and maintained.
9a. According to the information and explanations given to us and the
records examined by us, the Company is generally depositing with
appropriate authorities undisputed statutory dues including provident
fund, investor education and protection fund, employees'' state
insurance, income-tax, sales-tax, wealth-tax, customs duty,
excise-duty, cess and other statutory dues wherever applicable.
Undisputed arrears of statutory dues outstanding as at 31st March, 2014
for a period of more than six months from the date they became payable
are as under:
Nature of Period Undisputed Tax
dues Amount (Rs. in lacs)
Income tax F.Y. 2010-11 23.12
Income tax F.Y. 2011-12 38.94
Income tax F.Y. 2007-08 0.96
(Lok Enterprises)
Income tax F.Y. 2010-11 96.73
(Lok Enterprises)
Income tax F.Y. 2011-12 0.45
(Lok Enterprises)
Service Tax F.Y. 2010-11 37.05
Service Tax F.Y. 2011-12 32.35
Service Tax F.Y. 2012-13 6.14
9b. According to the records of the Company, dues of sales tax,
income-tax, customs, wealth-tax, excise duty, cess (excluding interest)
which have not been deposited on account of disputes and the forum
where the dispute is pending are as under:
Nature of dues Period Forum Disputed Tax
Amount (Rs. in lacs)
Income tax F.Y. 2004-05 ITAT, 10.44
Mumbai
Income tax F.Y. 2008-09 CIT(A) 1045.41
Income tax F.Y. 2008-09 ITAT, 26.46
Mumbai
Income tax F.Y. 2009-10 CIT(A) 1662.34
Income tax F.Y. 2010-11 CIT(A) 100.45
Please refer to note no. 15.5 of notes to accounts, regarding non
provision of interest u/ s 220 of the Income Tax Act, 1961.
10. There are no accumulated losses of the Company as on 31st March,
2014. The Company has not incurred any cash loss during the financial
year covered by our audit but has incurred cash loss of Rs.1868.55 lacs
in the immediately preceding financial year.
11. During the year, repayment of dues to financial institutions and
banks are partly made and as per the Company''s records the amount due
in this respect is as under:
Sr. Name of Insti- Amount of due Over due
No. tution/Bank o/s on 31-03-2014 since
(Rs. in lacs)
1. State Bank of 1656.27 31-03-2014
India
12. Based on our examination of the records and the information and
explanations given to us, the Company has not granted any loans and/ or
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. In our opinion, provisions of any special statute applicable to
chit fund /nidhi / mutual benefit fund/ society are not applicable to
the Company.
14. In our opinion and according to the information and explanation
given to us, the Company is not a dealer or trader in shares
securities, debentures and other investments.
15. In our opinion and according to the information and explanation
given to us, the Company has not given any guarantees for loans taken
by others from banks or Financial Institutions.
16. In our opinion and according to the information and explanation
given to us, on an overall basis, the term loans have been applied for
the purpose of which they are obtained.
17. According to the information and explanations given to us and on
the basis of an overall examination of the Balance sheet of the
Company, in our opinion no funds raised on short-term basis have been
used for long-term investment. Similarly no long-term funds have been
used to finance short-term assets except permanent working capital.
18. According to the information and explanations given to us, the
Company has not made any preferential allotment of shares during the
year.
19. According to the information and explanations given to us, during
the year, the Company has not issued any debentures.
20. According to the information and explanations given to us, during
the year the Company has not raised any money by way of public issues.
21. According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the year.
For Bhupendra Shroff & Co.
Chartered Accountants
Firm No.: 101458W
B. N. Shroff
Partner
Membership No.: 5039
Place : Mumbai,
Date : May 29th, 2014
Mar 31, 2013
Report on the Financial Statements
1. We have audited the accompanying financial statements of LOK
HOUSING AND CONSTRUCTIONS LIMITED ("the Company")'' which comprise the
Balance Sheet as at March 31'' 2013'' and the Statement of Profit and
Loss and Cash Flow Statement for the year then ended'' and a summary of
significant accounting policies and other explanatory information.
ManagementÂs Responsibility for the Financial Statements.
2. 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.
Auditors Responsibility
3. 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.
4. An audit involves performing procedures to obtain audit evidence
about the amounts and 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 control relevant to the
CompanyÂs preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the
circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by management'' as well as evaluating the overall
presentation of the financial statements.
5. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
Opinion
6. 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 March 31'' 2013;
b) in the case of the Statement of Profit and Loss'' of the loss for the
year ended on that date; and
c) in the case of the Cash Flow Statement'' of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
7. 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.
8. As required by section 227(3) of the Act'' we report that:
a) we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) in our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books
c) the Balance Sheet'' Statement of Profit and Loss'' and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account.
d) in our opinion'' the Balance Sheet'' Statement of Profit and Loss'' and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act'' 1956;
e) on the basis of written representations received from the directors
as on March 31'' 2013'' and taken on record by the Board of Directors''
none of the directors is disqualified as on March 31'' 2013'' from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act'' 1956.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act'' 1956 nor has it issued any Rules under the said section''
prescribing the manner in which such cess is to be paid'' no cess is due
and payable by the Company.
The Annexure referred to in paragraph 7 of the Our Report of even date
to the members of LOK HOUSING AND CONSTRUCTIONS LIMITED on the accounts
of the Company for the year ended 31st March'' 2013.
On the basis of such checks as we considered appropriate and according
to the information and explanation given to us during the course of our
audit'' we report that :
1a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
1b. As per the information and explanations given to us physical
verification of fixed assets has been carried out at regular intervals
and we have been informed that no material discrepancies were noticed
on such verification. In our opinion'' the frequency of verification is
reasonable'' having regard to the size of the Company and nature of its
fixed assets.
1c. During the year'' the Company has not disposed of any substantial /
major part of fixed assets.
2a. As per the information furnished'' the inventories have been
physically verified during the year by the management. In our opinion''
having regard to the nature and location of stocks'' the frequency of
the physical verification is reasonable.
2b. In our opinion and according to the information and explanations
given to us the procedure for physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of business.
2c. The Company is maintaining proper records of inventory. In our
opinion'' discrepancies noticed on physical verification of stocks were
not material in relation to the operations of the Company and the same
have been properly dealt with in the books of account.
3a. As per the information furnished'' the Company has outstanding
unsecured advances given aggregating to Rs. 6.49 lacs (previous year Rs.
4.72 lacs) to 3 party (previous year 1 party ) listed in the register
maintained under Section 301 of the Companies Act'' 1956'' the terms of
which are prima facie not prejudicial to the interest of the Company.
3b. As per the information furnished'' the Company has not taken loans
(previous year nil) from any party ( previous year no party) listed in
the register maintained under Section 301 of the Companies Act'' 1956''
the terms of which are prima facie not prejudicial to the interest of
the Company.
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 the nature of its
business with regard to purchase of inventory and fixed assets and for
the sale of goods. During the course of our audit'' no major weakness
has been noticed in the internal control procedures.
5a. Based on the audit procedures applied by us and according to the
information and explanations provided by the management'' we are of the
opinion that the transactions that need to be entered into the register
maintained under Section 301 have been so entered.
5b. In our opinion and according to the information and explanations
given to us'' there are no transactions exceeding the value of Rs. five
lacs each which have been made at prices which are unreasonable having
regard to prevailing market prices at the relevant time.
6. In our opinion'' the Company has not accepted any deposits during
the year from the public within the meaning of the provisions of
Section 58A and 58AA of the Companies Act'' 1956 and rules made there
under. Hence'' the Clause (vi) of the order is not applicable.
7. The Company has an adequate internal audit system commensurate with
the size of the Company and the nature of its business. However the
same need to be strengthened.
8. As informed to us'' the maintenance of cost records has been
prescribed by the Central Government under section 209(l)(d) of the
Companies Act'' 1956'' in respect of the activities carried on by the
Company. On our verification and as per information and explanation
given to us such accounts and records have been made and maintained.
9a. According to the information and explanations given to us and the
records examined by us'' the Company
is generally depositing with appropriate authorities undisputed
statutory dues including provident fund'' investor education and
protection fund'' employees state insurance'' income-tax'' sales-tax''
wealth-tax'' customs duty'' excise-duty'' cess and other statutory dues
wherever applicable. Undisputed arrears of statutory dues outstanding
as at 31st March'' 2013 for a period of more than six months from the
date they became payable are as under:
Nature of Period Undisputed Tax
dues Amount (Rs. in lacs)
Income tax F.Y. 2008-09 15.59
Income tax F.Y. 2010-11 20.82
Income tax F.Y. 2011-12 35.07
9b. According to the records of the Company'' dues of sales tax''
income-tax'' customs'' wealth-tax'' excise duty'' cess (excluding interest)
which have not been deposited on account of disputes and the forum
where the dispute is pending are as under:
Nature of
dues Period Forum Disputed Tax
Amount (Rs. in lacs)
Income tax F.Y. 2004-05 CIT(A) 11.59
Income tax F.Y. 2006-07 CIT(A) 3.21
Income tax F.Y. 2006-07 CIT(A) 282.00
Income tax F.Y. 2007-08 CIT(A) 198.00
Income tax F.Y. 2008-09 CIT(A) 1''045.41
Income tax F.Y. 2008-09 ITAT 26.46
Income tax F.Y. 2009-10 CIT(A) 1''662.34
Please refer to note no. 15.5 of notes to accounts'' regarding non
provision of interest u/s 220 of the Income Tax Act'' 1961.
10. There are no accumulated losses of the Company as on 31st March''
2013. The Company has incurred cash loss during the financial year
covered by our audit but not in the immediately preceding financial
year.
11. During the year'' repayment of dues to financial institutions and
banks are partly made and as per the CompanyÂs records the amount due
in this respect is as under:
Sr. Name of Amount of due Over due
No. Institution/ o/s on 31-03-2013 since
Bank (Rs. in lacs'')
1. State Bank of 833.00 31-03-2013
india
12. Based on our examination of the records and the information and
explanations given to us'' the Company has not granted any loans and/or
advances on the basis of security by way of pledge of shares''
debentures and other securities.
13. In our opinion'' provisions of any special statute applicable to
chit fund /nidhi / mutual benefit fund/ society are not applicable to
the Company.
14. In our opinion and according to the information and explanation
given to us'' the Company is not a dealer or trader in shares
securities'' debentures and other investments.
15. In our opinion and according to the information and explanation
given to us'' the Company has not given any guarantees for loans taken
by others from banks or Financial Institutions.
16. In our opinion and according to the information and explanation
given to us'' on an overall basis'' the term loans have been applied for
the purpose of which they are obtained.
17. According to the information and explanations given to us and on
the basis of an overall examination of the Balance sheet of the
Company'' in our opinion no funds raised on short-term basis have been
used for long-term investment. Similarly no long-term funds have been
used to finance short-term assets except permanent working capital.
18. According to the information and explanations given to us'' the
Company has not made any preferential allotment of shares during the
year.
19. According to the information and explanations given to us'' during
the year'' the Company has not issued any debentures.
20. According to the information and explanations given to us'' during
the year the Company has not raised any money by way of public issues.
21. According to the information and explanations given to us'' no
material fraud on or by the Company has been noticed or reported during
the year.
For Bhupendra Shroff & Co.
Chartered Accountants
Firm No.: 101458W
B.N.Shroff
Partner
Membership No.: 5039
Mumbai'' July 23'' 2013
Mar 31, 2012
We have audited the Balance Sheet of LOK HOUSING AND CONSTRUCTIONS
LIMITED as at 31st March, 2012 and the Statement of Profit & Loss of
the Company for the year ended on that date annexed there to. These
financial Statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We have conducted our audit in accordance with the auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
We report that:
1. As required by the Companies (Auditor's Report) Order, 2003
issued by the Company Law Board in terms of section 227 (4A) of the
Companies Act, 1956, we give in the Annexure a statement on the matters
specified in paragraph 4 & 5 of the said Order.
2. Further to our comments in the Annexure referred to in Paragraph 1
above, we state 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 Books of
the Company;
c. The Balance Sheet and the Statement of Profit & Loss and Cash Flow
statement referred to in this report are in agreement with the Books of
Account.
d. In our opinion the Balance Sheet, the Statement of Profit & Loss
and Cash Flow statement dealt with by this report comply with the
Accounting Standards referred to in section 211(3C) of the Companies
Act, 1956;
e. On the basis of the confirmations received from the directors, as
on 31st March, 2012 and taken on record by the Board of Directors, we
report that none of the directors of the Company are disqualified from
being appointed as directors of the company under clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
f. In our opinion and to the best of our knowledge and according to
the information and explanation given to us the said Balance Sheet, the
Statement of Profit & Loss and Cash Flow Statement read together with
the notes there on attached thereto give the information required by
the Companies Act, 1956 in the manner so required and, Subject to
provision for interest and other charges payable uponfinal settlement
particularly with State Bank Of India, which is in advance stage of
negotiation, the amount thereof being unascertainable.(See Notes 5.2.1,
5.3.1 and 5.3.2 to Accounts.) give a true and fair view, in conformity
with the accounting principles generally accepted in India:
i. In the case of the Balance Sheet of the state of affairs of the
Company as at 31st March, 2012;
ii. In the case of the the Statement of Profit & Loss of the Profit of
the Company for the year ended on that date and;
iii. 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 (1) of our Report of even date)
1a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
1b. As per the information and explanations given to us physical
verification of fixed assets has been carried out at regular intervals
and we have been informed that no material discrepancies were noticed
on such verification. In our opinion, the frequency of verification is
reasonable, having regard to the size of the Company and nature of its
fixed assets.
1c. During the year, the Company has not disposed of any substantial /
major part of fixed assets.
2a. As per the information furnished, the inventories have been
physically verified during the year by the management. In our opinion,
having regard to the nature and location of stocks, the frequency of
the physical verification is reasonable.
2b. In our opinion and according to the information and explanations
given to us the procedure for physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of business.
2c. The Company is maintaining proper records of inventory. In our
opinion, discrepancies noticed on physical verification of stocks were
not material in relation to the operations of the Company and the same
have been properly dealt with in the books of account.
3a. As per the information furnished, the Company has outstanding
unsecured advances given aggregating to Rs. 4.72 lacs (previous year Rs.
365.76 lacs) to 1 party (previous year 1 party ) listed in the register
maintained under Section 301 of the Companies Act, 1956, the terms of
which are prima facie prejudicial to the interest of the Company.
3b. As per the information furnished, the Company has no loans taken
(previous year nil) from any party (previous year no party) listed in
the register maintained under Section 301 of the Companies Act, 1956,
the terms of which are prima facia not prejudicial to the interest of
the Company.
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 the nature of its
business with regard to purchase of inventory and fixed assets and for
the sale of goods. During the course of our audit, no major weakness
has been noticed in the internal control procedures.
5a. Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the transactions that need to be entered into the register
maintained under Section 301 have been so entered.
5b. In our opinion and according to the information and explanations
given to us, there are no transactions exceeding the value of Rs. five
lacs each which have been made at prices which are unreasonable having
regard to prevailing market prices at the relevant time.
6. In our opinion, the Company has not accepted any deposits during
the year from the public within the meaning of the provisions of
Section 58A and 58AA of the Companies Act, 1956 and rules made there
under. Hence, the Clause (vi) of the order is not applicable.
7. The Company has an adequate internal audit system commensurate with
the size of the Company and the nature of its business. However the
same need to be strengthened.
8. As informed to us, the maintenance of cost records has been
prescribed by the Central Government under section 209(1) (d) of the
Companies Act, 1956, in respect of the activities carried on by the
Company. On our verification and as per information and explanation
given to us such accounts and records have been made and maintained.
9a. According to the information and explanations given to us and the
records examined by us, the Company is generally depositing with
appropriate authorities undisputed statutory dues including provident
fund, investor education and protection fund, employees' state
insurance, income-tax, sales-tax, wealth-tax, customs duty,
excise-duty, cess and other statutory dues wherever applicable.
Undisputed arrears of statutory dues outstanding as at 31st March, 2012
for a period of more than six months from the date they became payable
are as under:
Nature of dues Period Undisputed Tax
Amount (Rs. in Lacs)
Income tax F.Y 2008-09 20.59
Income tax F.Y. 2010-11 20.82
Mvat Sales Tax F.Y. 2010-11 0.47
Service Tax F.Y. 2010-11 1.42
9b. According to the records of the Company, dues of sales tax,
income-tax, customs, wealth-tax, excise duty, cess (excluding interest)
which have not been deposited on account of disputes and the forum
where the dispute is pending are as under:
Nature of Period Forum Disputed
dues Tax Amount
(Rs. in lacs)
Income tax F.Y 2005-06 CIT(A) 11.59
Income tax F.Y 2006-07 ITAT 7,568.88
Income tax F.Y 2006-07 A.O. 282.00
Income tax F.Y. 2007-08 CIT (A) 5,936.15
Income tax F.Y 2007-08 A.O. 198.00
Income tax F.Y. 2008-09 CIT(A) 1,045.41
Income tax F.Y 2008-09 ITAT 26.46
Please refer to note no. 15.5 of notes to accounts, regarding non
provision of interest u/s 220 of the Income Tax Act, 1961.
10. There are no accumulated losses of the Company as on 31st March,
2012. The Company has not incurred any cash losses during the financial
year covered by our audit and the immediately preceding financial year.
11. The Company has defaulted in repayment of dues to financial
institutions, banks and debenture holders, and as per the Company's
records the amount outstanding in this respect are as under:
Sr Name of Amount of due Over due
No Institution/ o/s on 31-03-2012 since
Bank (Rs. in lacs)
1. State Bank of 4,961.59 14-12-2007
India
For the above purpose we have relied on figures as reflected in the
books of account of the Company. The figures as claimed by the Banks /
Financial Institutions are not available to us as the same are being
disputed.
12. Based on our examination of the records and the information and
explanations given to us, the Company has not granted any loans and/or
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. In our opinion, provisions of any special statute applicable to
chit fund /nidhi / mutual benefit fund/ society are not applicable to
the Company.
14. In our opinion and according to the information and explanation
given to us, the Company is not a dealer or trader in shares
securities, debentures and other investments.
15. In our opinion and according to the information and explanation
given to us, the Company has not given any guarantees for loans taken
by others from banks or Financial Institutions.
16. In our opinion and according to the information and explanation
given to us, on an overall basis, the term loans have been applied for
the purpose of which they are obtained.
17. According to the information and explanations given to us and on
the basis of an overall examination the balance sheet of the Company,
in our opinion no funds raised on short-term basis have been used for
long-term investment. Similarly no long-term funds have been used to
finance short-term assets except permanent working capital.
18. According to the information and explanations given to us, during
the year the Company has converted 22,00,000 optionally convertible
share warrants into equity shares at Rs. 40/- per warrant (including a
premium of Rs. 30/-) on preferential basis to parties and companies
covered in the register maintained under section 301 of the Act.
19. According to the information and explanations given to us, during
the year, the Company has not issued any debentures.
20. According to the information and explanations given to us, during
the year the Company has not raised any money by way of public issues.
21. According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the year.
FOR BHUPENDRA SHROFF & CO.,
Chartered Accountants
Firm No. 101458W
B. N. SHROFF
Partner
Mumbai, Membership No. 5039
Date : 7th August, 2012
Mar 31, 2010
We have audited the Balance Sheet of LOK HOUSING AND CONSTRUCTIONS
LIMITED as at 31st March, 2010 and the Profit & Loss Account of the
Company for the year ended on that date annexed there to. These
financial Statements are the responsibility of the Companys
management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We have conducted our audit in accordance with the auditing standards
generally accepted in India. These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for
our opinion.
We report that:
1. As required by the Companies (Auditors Report) Order, 2003 issued
by the Company Law Board in terms of section 227 (4A) of the Companies
Act, 1956, we give in the Annexure a statement on the matters specified
in paragraph 4 & 5 of the said Order.
2. Further to our comments in the Annexure referred to in Paragraph 1
above, we state 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 Books of
the Company;
c. The Balance Sheet and Profit & Loss Account and Cash Flow statement
referred to in this report are in agreement with the Books of Account.
d. In our opinion the Balance Sheet, Profit and Loss Account and Cash
Flow statement dealt with by this report comply with the Accounting
Standards referred to in section 211(3C) of the Companies Act, 1956;
e. On the basis of the confirmations 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 of the Company are disqualified from
being appointed as directors of the company under clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
f. In our opinion and to the best of our knowledge and according to the
information and explanation given to us the said Balance Sheet, Profit
& Loss Account and Cash Flow Statement read together with the notes
there on attached thereto 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:
i. In the case of the Balance Sheet of the state of affairs of the
Company as at 31st March, 2010;
ii. In the case of the Profit & Loss Account of the Profit of the
Company for the year ended on that date and;
iii. 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 (1) of our Report of even date)
1a. The Company has maintained proper records showing full particulars
including quantitative details and situation of fixed assets.
lb. As per the information and explanations given to us physical
verification of fixed assets has been carried out at regular intervals
and we have been informed that no material discrepancies were noticed
on such verification. In our opinion, the frequency of verification is
reasonable, having regard to the size of the Company and nature of its
fixed assets.
lc. During the year, the Company has not disposed of any substantial /
major part of fixed assets.
2a. As per the information furnished, the inventories have been
physically verified during the year by the management. In our opinion,
having regard to the nature and location of stocks, the frequency of
the physical verification is reasonable.
2b. In our opinion and according to the information and explanations
given to us the procedure for physical verification of inventory
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of business.
2c. The Company is maintaining proper records of inventory. In our
opinion, discrepancies noticed on physical verification of stocks were
not material in relation to the operations of the Company and the same
have been properly dealt with in the books of account.
3a. As per the information furnished, the Company has outstanding
unsecured advances given aggregating to Rs.16,89.91 lacs (previous year
Rs.14,60.84 lacs) to 5 parties (previous year 5 parties) listed in the
register maintained under Section 301 of the Companies Act, 1956, the
terms of which are prima facie prejudicial to the interest of the
Company.
3b. As per the information furnished, the Company has no loans taken
(previous year Rs.562.50 lacs) from any party (previous year 1 party)
listed in the register maintained under Section 301 of the Companies
Act, 1956, the terms of which are prima facie not prejudicial to the
interest of the Company.
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 the nature of its
business with regard to purchase of inventory and fixed assets and for
the sale of goods. During the course of our audit, no major weakness
has been noticed in the internal control procedures.
5a. Based on the audit procedures applied by us and according to the
information and explanations provided by the management, we are of the
opinion that the transactions that need to be entered into the register
maintained under Section 301 have been so entered.
5b. In our opinion and according to the information and explanations
given to us, there are no transactions exceeding the value of Rs. five
lacs each which have been made at prices which are unreasonable having
regard to prevailing market prices at the relevant time.
6. In our opinion, the Company has not accepted any deposits during
the year from the public within the meaning of the provisions of
Section 58A and 58AA of the Companies Act, 1956 and rules made there
under. Hence, the Clause (vi) of the order is not applicable.
7. The Company has an adequate internal audit system commensurate with
the size of the Company and the nature of its business. However the
same need to be strengthened.
8. We are informed that in case of the Company the Central Government
has not prescribed maintenance of cost record as required under section
209(1) (d) of the Companies Act,1956.
9a. According to the information and explanations given to us and the
records examined by us, the Company is generally depositing with
appropriate authorities undisputed statutory dues including provident
fund, investor education and protection fund, employees state
insurance, income-tax, sales-tax, wealth-tax, customs duty,
excise-duty, cess and other statutory dues wherever applicable.
Undisputed arrears of statutory dues outstanding as at 31 st March,
2010 for a period of more than six months from the date they became
payable are as under:
Nature of Period Undispured Tax Amount
dues (excluding interest for delay)
(Rs. in lacs)
Income tax FY. 2007-08 15.95
Income tax F.Y. 2008-09 44.41
9b. According to the records of the Company, dues of sales tax,
income-tax, customs, wealth-tax, excise duty, cess (excluding interest)
which have not been deposited on account of disputes and the forum
where the dispute is pending are as under:
Nature of Period Forum Disputed
dues Tax Amount
(Rs. in hies)
Income tax F.Y. 2002-03 CIT (A) 11.26
Income tax F.Y. 2006-07 CIT(A) 75,68.88
Income tax F.Y 2006-07 ITAT 2,82.00
Income tax F.Y. 2007-08 Assessing 1,31.11
Officer
Income tax F.Y 2007-08 ITAT 1,98.00
Income tax FY. 2008-09 ITAT 26.46
Please refer to Point no. 3 & 4 of notes to accounts
10. There are no accumulated losses of the Company as on 31st March,
2010. The Company has not incurred any cash losses during the financial
year covered by our audit and the immediately preceding financial year.
11. The Company has defaulted in repayment of dues to financial
institutions, banks and debenture holders, and as per the Companys
records the amount outstanding in this respect are as under:
Sr. Name of Amount of Over due
No. Institution / due o/s on since
Bank 31 -03-2010
(Rs. in lacs)
1. State Bank of India 41,98.99 14.12.2007
For the purpose we have relied on figures available from the Companys
records and not from those available from the
Banks / Financial Institutions as the figures either disputed or are
not available from the Banks / Financial Institutions, due to the
disputes.
12. Based on our examination of the records and the information and
explanations given to us, the Company has not granted any loans and/or
advances on the basis of security by way of pledge of shares,
debentures and other securities.
13. In our opinion, provisions of any special statute applicable to
chit fund /nidhi / mutual benefit fund/ society are not applicable to
the Company.
14. In our opinion and according to the information and explanation
given to us, the Company is not a dealer or trader in shares
securities, debentures and other investments.
15. In our opinion and according to the information and explanation
given to us, the Company has not given any guarantees for loans taken
by others from banks or Financial Institutions.
16. In our opinion and according to the information and explanation
given to us, on an overall basis, the term loans have been applied for
the purpose of which they are obtained.
17. According to the information and explanations given to us and on
the basis of an overall examination the balance sheet of the Company,
in our opinion no funds raised on short-term basis have been used for
long-term investment. Similarly no
long-term funds have been used to finance short-term assets except
permanent working capital.
18. According to the information and explanations given to us, during
the year the Company has allotted 50,00,000 optionally convertible
share warrants at Rs. 40/- per warrant (including a premium of Rs.
30/-) on preferential basis to parties and companies covered in the
register maintained under section 301 of the Act.
19. According to the information and explanations given to us, during
the year, the Company has not issued any debentures.
20. According to the information and explanations given to us, during
the year the Company has not raised any money by way of public issues.
21. According to the information and explanations given to us, no
material fraud on or by the Company has been noticed or reported during
the year.
For BHUPENDRA SHROFF & CO.,
Chartered Accountants
Firm No. 101458W
B N SHROFF
Partner
Membership No. 5039.
Mumbai,
Date : 9th August, 2010
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