Mar 31, 2015
We have audited the accompanying standalone financial statements of
Popular Estate Management Limited ('the Company'), which compose the
balance sheet as at 31st March 2015, the statement of profit and loss
and the cash flow statement for the year then ended, and a summary of
signficant 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 Act") 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 Section133 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 anti detecting frauds and other irregularibles;
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.
Auditor's Responsibility
Our responsibility is to express an opinion cm the 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 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, but not for the purpose of expressing
an opinion cm whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. 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,
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
h) In the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
c) In the case of the Cash flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2015 ("the
Order") 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
statement on the matters specified in the paragraph 3 and 4 of the
Order, to the extent applicable.
2. As required by Section 143(3) of the Act, we report that:
(a) We have sought and obtained ail 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 representation received from the
directors as on March 31, 2015 taken on record by the Board of
Directors, none of the Directors are disqualified as on March 31, 2015
from being appointed as a Director In terms of Sub-section 2 of Section
164 of the Act.
(f) With respect to the other matters to be included in the Auditors
Report in accordance with Rule11 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 Point No. 7 of
Notes to Financial Statements.
II. The Company did not have any long term contracts including
derivative contracts for which there were any material foreseeable
losses.
III. There were no amounts that were nequined to be transferred to the
Investor Education and Protection Fund by the company during the year.
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT
Referred to in Paragraph 1 of our report on Other Legal and Regularity
Requirements of even date on the accounts of Popular Estate Management
Limited for the year ended on March 31, 2015.
1) In respect of its fixed assets;
(a) The company has generally maintained proper records showing full
particulars including quantitative details and situation of fixed
assets on the basis of available information.
(b) As explained to us, the fixed assets have been physically verified
by the management at reasonable Intervals during the year, which in our
opinion is reasonable, having regard to the size of the Company and
nature of its assets. No material discrepancies were noticed on such
physical verification.
(c) In our opinion, the company has not disposed off substantial part
of fixed assets during the year and the going concern status of the
Company is not affected.
2} In respect of its Inventories:
(a) As explained to us, the physical verification of the inventory has
been conducted by the management at reasonable intervals during the
year,
(b) In our opinion and according to the information and explanations
given to us the procedures of the 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 mventory. As explained
to us, there was no material discrepancies notices on physical
verification of inventory as com pored to the book records,
3) 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.
4) in our opinion and according to the information and explanations
given to us, the company has an adequate internal control system
commensurate with its size and the nature of its business with regards
to purchase of fixed assets and sale of services, The activities of the
Company do not Involve purchase of Inventory and the sale of goods. We
have not observed any major weakness In the 'internal control system
during the course of the audit.
5) The Company has not accepted any deposits From the public in
accordance with the provisions of section 73 to 76 of the Act and the
rules framed there under.
No order has been passed by the Company Law Board or National Company
Law Tribunal or Reserve Bank of India or any court or any other
tribunal,
6) As informed to us, the Central Government has not prescribed the
maintenance of cost records under section 148 (1) of the Companies Act,
2013.
7) In respect of statutory dues:
(a) According to the Information and explanations given to us and on
the basis of our examinations of the books of account, the Company has
been regular In depositing undisputed amounts with the appropriate
authorities In respect of Statutory duos Including Provident Fund,
Investor Education and Protection Fund, Employees' State Insurance,
Income tax, Sales tax, Wealth Tax, Service tax, Custom Duty, Excise
Duty, Cess and any other statutory dues, wherever applicable to it.
(b) Further as Informed to us, there are no undisputed dues payable for
a period of more than six months as at 31st March 2015, from the date
they became payable.
(c) According to the Information and explanation given to us, there are
no dues of sales fax, customs duty, wealth tax, Service tax, excise
duty and cess, which have hot been deposited on account of any dispute
except Income Tax as per details given hereunder:
Nature Nature Disputed Amt,
of of dues Amount deposited
Statutes (Rs. In under
lacs) dispute
(Rs. In
lacs)
Income Income 227.84 NIL
Tax Act Tax
Income Income 115.94 36.15
Tax Act Tax
Income Income 132.00 NIL
Tax Act Tax
Penalty
Income Income 4.98 Nil
Tax Act Tax
Income Income 782.14 NIL
Tex Act Tex
Nature Period to Forum where
of which the dispute Is
Statutes amount pending
relates
Financial
year)
Income 2007-08 CJT (APPEALS)
Tax Act
Income 2008-09 STAT
Tax Act
Income 2008-09 CIT (APPEALS)
Tax Act
Income 2010-11 CIT (APPEALS)
Tax Act
Income 201 I-12 CIT (APPEALS)
Tex Act
8) The company does not have any accumulated losses at the end of the
financial year. The Company has not incurred cash losses in the
financial year and In the immediately preceding financial year.
9) According to the Information and explanations given to us, the
company is generally regular in repayment of dues to a financial
institution and bank. The company has not issued any debentures.
10) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from any
bank or financial institution.
11) The Company did not raise any term loan during the year. The term
loans which wore raised in earlier years and are outstanding as at year
end were used in earlier year for the purpose for which they were taken.
12) In our opinion and according to the Information end explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year, that causes the financial statements to be materially
misstated.
Date: 27-05-2015 For Patel &Jesalpura
Place: Ahmedabad Chartered Accountants
FRNo: 120802W
CA. Ashok P. Patel
Partner
M. No. 040482
Mar 31, 2014
We have audited the accompanying financial statements of Popular Estate
Management Limited, which comprise the Balance Sheet as at March 31,
2014, the Statement of Profit and Loss and Cash Flow Statement for the
year then ended, and a summary of significant accounting policies and
other explanatory information.
Management''s Responsibility for the Financial Statements :
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting principles generally accepted in India including
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956. 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 :
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditors'' 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
auditors 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.
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 March 31, 2014;
b) In the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements :
1. As required by the Companies (Auditor''s Report) Order, 2003 issued
by the Central Government of India in terms of sub-section (4A) of
section 227 of the Act, we give in the Annexure a statement on the
matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b) In our opinion proper books of account as required by law have been
kept by the Company so far as appears from our examination of those
books subject to Para 2
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;
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.
ANNEXURE TO AUDITORS'' REPORT
Referred to in Paragraph 1 under the heading of Report on Other Legal
and Regulatory Requirements
1) In respect of its fixed assets:
(a) The company has generally maintained proper records showing full
particulars including quantitative details and situation of fixed
assets on the basis of available information
(b) As explained to us, the fixed assets have been physically verified
by the management at reasonable intervals during the year, which in our
opinion is reasonable, having regard to the size of the Company and
nature of its assets. No material discrepancies were noticed on such
physical verification
(c) In our opinion, the company has not disposed off substantial part
of fixed assets during the year and the going concern status of the
Company is not affected.
2) In respect of its inventories :
(a) As explained to us, the physical verification of the inventory has
been conducted by the management at reasonable intervals during the
year.
(b) In our opinion and according to the information and explanations
given to us the procedures of the 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, there were no material discrepancies noticed on
physical verification of inventory as compared to the book records.
3) (a) The company has granted interest free loans, secured or
unsecured to Six parties covered in the register maintained under
section 301 of the Companies Act, 1956. The maximum amount involved
during the year was Rs. 136.75 lacs and the year end balance of
loans granted to such parties was Rs. 124.90 lacs.
(b) These loans are granted at NIL Rate of Interest. Further in absence
of stipulation of terms of repayment, we are unable to comment whether
the same is prejudicial to the interest of the company or not.
(c) In view of above we are not able to give comment on para (3) (c)
and (d) of the Companies (Auditor''s Report) Order, 2003.
(d) The company has taken unsecured loans from Four parties covered in
the register maintained under section 301 of the Companies Act, 1956.
The maximum amount involved during the year was Rs..31.10 lacs and the
year end balance of loans taken from them was Rs. NIL
(e) In absence of stipulated terms for repayment of loans, we are not
able to give comment on para 3
(f) and (g) of the Companies (Auditor''s Report) Order, 2003.
4) As informed to us, there is an adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to the purchase of inventory, investments and
fixed assets. During the course of our audit, no major weaknesses in
internal control had come to our notice.
5) (a) As informed to us, the particulars of contracts or arrangement
that need to be entered into the
registers in pursuance of Section 301 of the Companies Act, 1956 have
been so entered.
(b) In our opinion and according to the information given to us, there
are no transactions of purchase and sale of goods, materials and
services made in pursuance of contracts entered in the register
maintained under section 301 of the companies Act, 1956 aggregating
during the year to Rs. 500000/- or more in respect of each party.
6) The Company has not accepted any deposits from the public within the
meaning of Section 58A of Companies Act, 1956.
7) In our opinion and according to the information given to us, the
company has internal audit system commensurate with the size and nature
of the business.
8) As informed to us, the Central Government has not prescribed the
maintenance of cost records under section 209(1) (d) of the Companies
Act. 1956.
9) In respect of statutory dues:
(a) According to the information and explanations given to us and on
the basis of our examinations of the books of account, the Company has
been regular in depositing undisputed amounts with the
appropriate authorities in respect of Statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees''
State Insurance, Income tax, Sales tax, Wealth Tax, Service tax, Custom
Duty, Excise Duty, Cess and any other statutory dues, wherever
applicable to it.
(b) Further as informed to us, there are no undisputed dues payable for
a period of more than six months as at 31st March 2014, from the date
they became payable.
(c) According to the information and explanation given to us, there are
no dues of sales tax, customs duty, wealth tax, Service tax, excise
duty and cess, which have not been deposited on account of any dispute
except Income Tax as per details given here under
No. Nature of Due Amount Remarks
1 Income Tax for 11,85,177/- The company has filed an appeal before
A Y 2011-12 Honorable CIT(A) (Commissioner of Income
Tax - Appeals), Ahmedabad against the
order of Ld. Assessing Officer
2 Income Tax for 3,50,89,660/- The company has filed an appeal before
A Y 2010-11 Honorable ITAT ( Income Tax Appellate
Tribunal), Ahmedabad against the order
of CIT(A)
confirming the order of Income Tax Officer.
10) The company does not have any accumulated losses at the end of the
financial year however has incurred cash losses during the year
immediately preceding current financial year. Further no cash Loss is
incurred in the Current financial year.
11) According to the information and explanations given to us, the
company is generally regular in repayment of dues to a financial
institution and bank. The company has not issued any debentures.
12) In our opinion and according to the information given to us, no
loans and advances have been granted by the Company on the basis of
security by way of pledge of shares, debentures and other securities.
13) In our opinion, the company is not a chit fund or a Nidhi/mutual
benefit fund/society. Therefore, clause 4(xiii) of the Companies
(Auditor''s Report) Order 2003 is not applicable to the Company.
14) The company has maintained proper records showing full particulars
of its investments. The investments are held by the company in its own
name.
15) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from any
bank or financial institution.
16) The Company has availed term loan from Banks and Financial
Institutions during the year and is generally regular in re-payment of
dues to financial Institutions.
17) According to the information and explanations given to us, the
Company has not raised any short-term borrowings during the year, and
nor are there any borrowings of earlier years which have been utilized
during the year. As such the question of commenting on their
utilization does not arise
18) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares during the
year to parties and companies covered in the Register maintained under
Section 301 of the Companies Act, 1956.
19) The Company has no debentures issued and outstanding during the
year.
20) During the year, the Company has not raised money by Public issue
and hence the question of disclosure and verification of end use of
such monies does not arise.
21) In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year, that causes the financial statements to be materially
misstated.
Date : 21-05-2014 For Patel & Jesalpura
Place : Ahmedabad Chartered Accountants
FR No.: 120802W
Ashok P. Patel
Partner
M No.: 040482
Mar 31, 2013
Report on The Financial Statements
We have audited the accompanying financial statements of Popular Estate
Management Limited, which comprise the Balance Sheet as at March 31,
2013, the Statement of Profit and Loss and Cash Flow Statement for the
year then ended, and a summary of significant accounting policies and
other explanatory information.
Management''s Responsibility for the Financial Statements :
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting principles generally accepted in India including
Accounting Standards referred to in sub-section (3C) of section 211 of
the Companies Act, 1956. 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 :
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditors'' 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
auditors 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.
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 March 31, 2013;
b) In the case of the Profit and Loss Account, 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 :
1. As required by the Companies (Auditor''s Report) Order, 2003
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. The Company has not made provision for Wealth Tax and hence to that
extent the Loss is understated and Current Liabilities are understated.
In absence of necessary details the amount is not quantifiable
3. 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 subject to Para 2
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.
ANNEXURE TO AUDITORS'' REPORT
Referred to in Paragraph 1 under the heading of Report on Other Legal
and Regulatory Requirements
1) In respect of its fixed assets :
(a) The company has generally maintained proper records showing full
particulars including quantitative details and situation of fixed
assets on the basis of available information
(b) As explained to us, the fixed assets have been physically verified
by the management at reasonable intervals during the year, which in our
opinion is reasonable, having regard to the size of the Company and
nature of its assets. No material discrepancies were noticed on such
physical verification
(c) In our opinion, the company has not disposed off substantial part
of fixed assets during the year and the going concern status of the
Company is not affected.
2) The Company does not have any inventories and hence this clause of
the order is not applicable to the company.
3) (a) The company has granted interest free loans, secured or
unsecured to Seven parties covered in the register maintained under
section 301 of the Companies Act, 1956. The maximum amount involved
during the year was Rs. 1391.38 lacs and the year end balance of loans
granted to such parties was Rs. 1037.16 lacs.
(b) These loans are granted at NIL Rate of Interest. Further in absence
of stipulation of terms repayment of company we are unable to comment
as regards whether the same is prejudicial to the interest of the
company or not.
(c) In view of above we are not able to give comment on para (3) (c)
and (d) of the Companies (Auditor''s Report) Order, 2003.
(d) The company has taken unsecured loans from Five parties covered in
the register maintained under section 301 of the Companies Act, 1956.
The maximum amount involved during the year was Rs..102. 15 lacs and
the year end balance of loans taken from them was Rs. 23.89 lacs.
(e) In absence of stipulated terms for repayment of loans, we are not
able to give comment on para 3 (f) and (g) of the Companies
(Auditor''s Report) Order, 2003.
4) As informed to us, there is an adequate internal control system
commensurate with the size of the Company and the nature of its
business with regard to the purchase of investments and fixed assets.
During the course of our audit, no major weaknesses in internal control
had come to our notice.
5) (a) As informed to us, the particulars of contracts or arrangement
that need to be entered into the registers in pursuance of Section 301
of the Companies Act, 1956 have been so entered.
(b) In our opinion and according to the information given to us, there
are no transactions of purchase and sale of goods, materials and
services made in pursuance of contracts entered in the register
maintained under section 301 of the companies Act, 1956 aggregating
during the year to Rs. 500000/- or more in respect of each party.
6) The Company has not accepted any deposits from the public within the
meaning of Section 58A of Companies Act, 1956.
7) In our opinion and according to the information given to us, the
company has internal audit system commensurate with the size and nature
of the business.
8) As informed to us, the Central Government has not prescribed the
maintenance of cost records under section 209(1) (d) of the Companies
Act. 1956.
9) In respect of statutory dues:
(a) According to the information and explanations given to us and on
the basis of our examinations of the books of account, the Company has
been regular in depositing undisputed amounts with the appropriate
authorities in respect of Statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees'' State Insurance,
Income tax, Sales tax, Wealth Tax, Service tax, Custom Duty, Excise
Duty, Cess and any other statutory dues, wherever applicable to it.
(b) Further as informed to us, there are no undisputed dues payable for
a period of more than six months as at 31st March 2013, from the date
they became payable.
(c) According to the information and explanation given to us, there are
no dues of sales tax, income tax, customs duty, wealth tax, Service
tax, excise duty and cess, which have not been deposited on account of
any dispute.
10) The company does not have any accumulated losses at the end of the
financial year however has incurred cash losses during the current
financial year. Further no cash Loss is incurred in the immediately
preceding financial year.
11) According to the information and explanations given to us, the
company is generally regular in repayment of dues to a financial
institution, and bank. The company has not issued any debentures.
12) In our opinion and according to the information given to us, no
loans and advances have been granted by the Company on the basis of
security by way of pledge of shares, debentures and other securities.
13) In our opinion, the company is not a chit fund or a Nidhi/mutual
benefit fund/society. Therefore, clause 4(xiii) of the Companies
(Auditor''s Report) Order 2003 is not applicable to the Company.
14) The company has maintained proper records showing full particulars
of its investments. The investments are held by the company in its own
name.
15) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from any
bank or financial institution.
16) The Company has not availed of any term loans during the year, nor
is there any amount outstanding in respect of term loans taken in
earlier years.
17) According to the information and explanations given to us, the
Company has not raised any short-term borrowings during the year, and
nor are there any borrowings of earlier years which have been utilized
during the year. As such the question of commenting on their
utilization does not arise.
18) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares during the
year to parties and companies covered in the Register maintained under
Section 301 of the Companies Act, 1956.
19) The Company has no debentures issued and outstanding during the
year.
20) During the year, the Company has not raised money by Public issue
and hence the question of disclosure and verification of end use of
such monies does not arise.
21) In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year, that causes the financial statements to be materially
misstated.
Date : 27th May, 2013 For Patel & Jesalpura
Place : Ahmedabad Chartered Accountants
FR No.: 120802W
Sd/-
Ashok P. Patel
Partner
M No.: 040482
Mar 31, 2012
1. We have audited the attached Balance Sheet of POPULAR ESTATE
MANAGEMENT LIMITED as at 31st March, 2012, Profit and Loss Statement
and Cash Flow Statement for the year ended on that date annexed
thereto. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
2. We conducted our audit in accordance with Standards of Auditing
generally accepted in India. Those Standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by 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 issued
by the Central Government of India in terms of sub section (4A) of the
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 to the extent applicable to the Company.
4. Further to our comments in the Annexure referred to above, 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 appears from our examination of the
books.
(c) The Balance Sheet and Profit and Loss statement and Cash Flow
Statement, dealt with by this report, are in agreement with the books
of account of the Company.
(d) In our opinion and to the best of our information and according to
the explanation given to us, the said accounts comply with the
Accounting Standards as referred to in section 211(3C) of the Companies
Act, 1956.
(e) As informed to us, none of the directors is disqualified as at 31st
March, 2012 from being appointed as a director in terms of Clause (g)
of sub-section (1) of section 274 of the Companies Act, 1956.
(f) In our opinion and to the best of our information and according to
the explanations given to us, the said accounts, read with the notes
thereon, give the information required by the Companies Act, 1956, in
the manner so required and give a true and fair view in conformity with
the accounting principle 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; and
ii. In case of the Profit and Loss statement, of the Profit for the
year ending on the said date; and
iii. In case of the Cash Flow Statement, of Cash Flow for the year
ending on the said date.
ANNEXURE TO AUDITORS' REPORT
Referred to in Paragraph 3 of our report of even date on the accounts
of Popular Estate Management Limited for the year ended on March 31,
2012
1) In respect of its fixed assets:
(a) The company has generally maintained proper records showing full
particulars including quantitative details and situation of fixed
assets on the basis of available information.
(b) As explained to us, the fixed assets have been physically verified
by the management at reasonable intervals during the year, which in our
opinion is reasonable, having regard to the size of the Company and
nature of its assets. No material discrepancies were noticed on such
physical verification.
(c) In our opinion, the company has not disposed off substantial part
of fixed assets during the year and the going concern status of the
Company is not affected.
2) In respect of its inventories:
The Company does not have any inventories.
3) (a) The company has granted interest free loans, secured or
unsecured to company, firms or other parties covered in the register
maintained under section 301 of the Companies Act, 1956. The maximum
amount involved during the year was Rs. 1754.87 lacs and the year end
balance of loans granted to such parties was Rs. 1391.38 lacs.
(b) In our opinion and according to the information and explanation
given to us, the rate of interest wherever applicable, and other terms
and conditions on which loans have been granted by the company are not
prima facie prejudicial to the interest of the Company.
(c) In respect of unsecured loans granted by the Company, there are no
stipulated terms for repayment of loans, hence we are not able to give
comment on para (3) (c) and (d) of the Companies (Auditor's Report)
Order, 2003.
(d) The company has taken unsecured loans from Four parties covered in
the register maintained under section 301 of the Companies Act, 1956.
The maximum amount involved during the year was Rs. 101.96 lacs and the
year end balance of loans granted to such parties was Rs. 98.15 lacs.
(e) In our opinion and according to the information and explanation
given to us, the rate of interest, and other terms and conditions on
which loans have been taken by the company are not prejudicial to the
interest of the Company.
(f) In respect of unsecured loans taken by the Company, there are no
stipulated terms for repayment of loans, hence we are not able to give
comment on para 3 (g) and (h) of the Companies (Auditor's Report)
Order, 2003.
4) In our opinion and according to the information and explanations
given to us, there is adequate internal control system commensurate
with the size of the Company and the nature of its business with regard
to the purchase of investments and fixed assets. During the course of
our audit, no major weaknesses in internal control had come to our
notice.
5) (a) To the best of our knowledge and according to the information
and explanations given to us, we are of the opinion that the
particulars of contracts or arrangement that need to be entered into
the registers in pursuance of 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, there are no transactions of purchase and sale of goods,
materials and services made in pursuance of contracts entered in the
register maintained under section 301 of the companies Act, 1956
aggregating during the year to Rs. 500000/- or more in respect of each
party.
6) The Company has not accepted any deposits from the public within the
meaning of Section 58A of Companies Act, 1956.
7) In our opinion and according to the information and explanations
given to us, the company has in general an adequate internal audit
system commensurate with the size and nature of the business.
8) According to the information and explanations given to us, the
Central Government has not prescribed the maintenance of cost records
under section 209(1) (d) of the Companies Act. 1956.
9) In respect of statutory dues:
(a) According to the information and explanations given to us and on
the basis of our examinations of the books of account, the Company has
been regular in depositing undisputed amounts with the appropriate
authorities in respect of Statutory dues including Provident Fund,
Investor Education and Protection Fund, Employees' State Insurance,
Income tax, Sales tax, Wealth Tax, Service tax, Custom Duty, Excise
Duty, Cess and any other statutory dues, wherever applicable to it.
There are no undisputed dues payable for a period of more than six
months as at 31st March 2012, from the date they became payable
(b) According to the information and explanation given to us, there are
no dues of sales tax, income tax, customs duty, wealth tax, Service
tax, excise duty and cess, which have not been deposited on account of
any dispute.
10) The company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the financial year
and in the immediately preceding financial year.
11) According to the information and explanations given to us and based
on audit procedures, we are of the opinion that the company has not
defaulted in repayment of dues to a financial institution, bank or
debenture holders.
12) In our opinion and according to the information and explanations
given to us, no loans and advances have been granted by the Company on
the basis of security by way of pledge of shares, debentures and other
securities.
13) In our opinion, the company is not a chit fund or a Nidhi/mutual
benefit fund/society. Therefore, clause 4(xiii) of the Companies
(Auditor's Report) Order 2003 is not applicable to the Company.
14) The company has maintained proper records showing full particulars
of its investments. The investments are held by the company in its own
name.
15) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from any
bank or financial institution.
16) The Company has not availed of any term loans during the year, nor
is there any amount outstanding in respect of term loans taken in
earlier years.
17) According to the information and explanations given to us, the
Company has not raised any short-term borrowings during the year, and
nor are there any borrowings of earlier years which have been utilized
during the year. As such the question of commenting on their
utilization does not arise.
18) According to the information and explanations given to us, the
Company has not made any preferential allotment of shares during the
year to parties and companies covered in the Register maintained under
Section 301 of the Companies Act, 1956.
19) The Company has no debentures issued and outstanding during the
year.
20) During the year, the Company has not raised money by Public issue
and hence the question of disclosure and verification of end use of
such monies does not arise.
21) In our opinion and according to the information and explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year, that causes the financial statements to be materially
misstated.
Date : 27th May, 2012 For Patel & Jesalpura
Place : Ahmedabad Chartered Accountants
FR No.: 120802W
Sd/-
Ashok P. Patel
Partner
M No.: 040482
Mar 31, 2010
We have audited the attached Balance Sheet of Popular Estate Management
Ltd., as at 31ST MARCH, 2010 and report that :
1. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit.
2. In our opinion proper books of accounts as required by law have
been kept by the company so far as appears from our examination of such
books.
3. The Balance Sheet and Profit & Loss Account dealt with by this
report are in agreement with the books of account.
4. In our opinion and to the best of our information and according to
the explanations given to us the Balance Sheet and the Profit and Loss
account together with the notes appearing thereon, given in the
prescribed manner the information required by the Companies Act,1956
give a true and fair view :
(i) in the case of balance sheet of the state of affairs as at 31 ST
MARCH, 2010.
(ii) in the case of Profit & Loss Account of the Loss for the year
ended on that date.
(iii) in case of the cashflow statement, of the cahsflows for the year
ended on that date.
5. The Balance Sheet & Profit and Loss Account comply with the
mandatory accounting standard referred to by Sec.211(3c) of Companies
(Amendment) Act, 1999.
6. As informed and explained to us, none of the directors is
disqualified from being appointed as directors under clause (g) of
subsection (1) of section .274.
7. As required by the manufacturing and other Companies (Auditors
Report) order 1988, issued by the Company Law Board in terms of Section
227 (4-A) of the Companies Act, 1956 and on the basis of such checks as
we considered appropriate and according to the information and
explanations given to us we report as under:
(i) The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets. These
fixed assets have been physically verified by the management at
reasonable intervals and no descrepancies have been noticed on such
verification.
(ii) None of the Fixed assets have been revalued during the year.
(iii) The Company has taken/accepted interest free unsecured loans of
Rs.184158000/- from companies, firms or other parties listed in the
Register maintained under Section 301 of the companies Act, 1956.
(iv) The Company has granted interest free unsecured loans of Rs.
170856245/- to the companies, firms or other parties listed in the
Register maintained under Section 301 of the companies Act, 1956.
(v) The parties to whom Loans or Advances in the nature of loans were
given by the company, are still total outstanding including interest,
wherever applicable.
(vi) In our opinion .there are adequate internal control procedures
commensurate with the size of the company and the nature of its
business for the purchase of materials and components, plant and
machinery, equipments and other assets.
(vii) The company has entered into agreement for development of land as
shown in Note No. (B) (ix) of Notes to Accounts, with parties listed
U/s. 301 of Companies Act 1956.
(viii) The Company has not accepted any deposit for the public as
defined in Sec. 58A of Companies Act,1956 and the companies (Acceptance
of Deposits) Rules,1978 during the year except unsecured loan of Rs
255768000/- from directors relatives and friends and group companies.
(ix) The Company has an internal audit system commensurate with its
size and nature of business.
(x) As explained, the requirement of maintainance of cost record under
Sec. 209(1 )(d) of the Companies Act, 1956 is not applicable.
(xi) As explained the Provisions of Employees Provident Fund Act and
other allied Act does not apply to the company.
(xii) No undisputed amounts payable in respect of Income - Tax.Wealth
Tax, Excise Duty was outstanding as at the last day of the financial
year for a period of more than six months from the date they, become
payable.
(xiii) The Company is not a sick industrial company within the meaning
of the the Sick Industrial Companies (special Provisions ) of Act,1985.
(xiv) According to the information and explanation given to us no
personal expenses of employers or Directors have been charged to
revenue account, other than those payable under contractual obligation
or in accordance with generally accepted business practice.
(xv) The service activities of the company are as such that the
question of allocation of man hours to the relative jobs does not
arises. Consequently the authorisation and control on the allocation of
labour to jobs is not applicable.
(xvi) Other Clauses of the order are not applicable to the company
during the year under consideration.
Place:-Ahmedabad SURENDRA KUMAR JAIN & CO.
Date :- 27/05/2010 CHARTERED ACCOUNTANTS
Sd/-
S K JAIN
PROPRIETOR
Membership No-71318