To the Members of
B NANJI ENTERPRISES LTD.
Report on the Financial Statement :
We have audited the accompanying stand alone financial statements of B NanjiEnterprises Limited (the Company) Ahmedabad which comprise the balance sheetas at March 31 2016 and the statement of profit & loss and cash flow statement forthe year then ended and a summary of significant accounting policies and otherexplanatory information.
Managements Responsibility for the financial statements :
The Companys Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 (the Act) with respect to thepreparation and presentation of these standalone financial statements that give a true andfair view of the financial position financial performance and cash flows of the Companyin accordance with the accounting principles generally accepted in India including theAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. This responsibility also includes maintenance ofadequate accounting records in accordance with the provisions of the Act for safeguardingthe assets of the Company and for preventing and detecting frauds and otherirregularities; selection and application of appropriate accounting policies; makingjudgements and estimates that are reasonable and prudent; and design implementation andmaintenance of adequate internal financial controls that were operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give true and fair view andare free from material misstatements whether due to fraud or error.
Auditors responsibility :
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.
We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specifiedu/s.143(10) of the Act. Those standards require that we comply with ethical requirementsand plan and perform the audit to obtain reasonable assurance about whether the financialstatements are free from material misstatements.
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on theauditors judgement including the assessment of the risk of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal financial control relevant to the Companyspreparation and fair presentation of the financial statements that give true and fair viewin order to design audit procedures that are appropriate in the circumstances. An auditalso includes evaluating the appropriateness of accounting policies used andreasonableness of the accounting estimates made by management as well as evaluating theoverall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.
BASIS FOR QUALIFIED OPINION :
Attention is invited towards Note No. 1 of Notes on Accounts regarding sales andpurchase of Works Contract without proper supporting evidences.
Attention is invited towards Note No. 2 of Notes on Accounts regarding discontinued toadd the borrowing cost amounting to Rs.381.79 lacs being interest paid to DHFL invaluation of Work in Progress of Vevji Umbergaon Site. Attention is invited towards NoteNo. 3 of Notes on Accounts regarding waiver of Land right in Land in earlier yearsituated at Survey No. 602 and 385 respectively.
Qualified Opinion :
In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis for QualifiedOpinion paragraph above the aforesaid stand alone financial statements give theinformation required by the act in the manner so required and give a true and fair view inconformity with the accounting principles generally accepted in India of the state ofaffairs of the company as at 31st March 2016 and its Profit and its cash flow forthe year ended on that date.
Other Matter :
Report on other legal and regulatory requirement.
1. As required by the Companies ( Auditors Report) Order 2016 ( "theOrder") issued by the Central Government of India in the terms of sub sec.(11)of section 143 of the Companies Act 2013 we give in the Annexure a statement on thematters specified in paragraphs 3 & 4 of the Order to the extent applicable.
2. As required by sec. 143(3) of the Companies Act 2013 we report that :
(a) We have sought and obtained all the information and explanations which to the bestof our knowledge and belief were necessary for the purpose of our audit.
(b) Except for the effect of the matter described in sub para-1 of the Basis OfQualified Opinion paragraph in our opinion proper books of account as required by lawhave been kept by the Company so fat as appears from our examination of those books.
(c) The balance sheet Statement of Profit & Loss and Cash Flow Statement dealtwith by this report are in agreement with the books of accounts.
(d) Except for the effect of the matter described in sub para 1 to3 of the Basis of Qualified Opinion paragraph above In our opinion theaforesaid standalone financial statements comply with the Accounting Standards specifiedunder section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.
(e) On the basis of written representation received from the directors as on March 312016 and taken on record by the Board of Directors none of the directors disqualified ason March 31 2016 from being appointed as a director in terms of Section 164(2) of theAct.
(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in Annexure-B"; and
(g) With respect to the other matters to be included in the auditors Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
i. As informed to us by the management there is no pending such litigation which mayeffect the financial results at a large.
ii. The company has made provisions as required under the applicable laws or accountingstandards for material foreseeable losses if any on long term contracts includingderivative contracts. iii. There were no amount which are required to be transferred tothe Investor Education and Protection Fund by the Company.
Annexure A to Independent Auditors Report
(i). a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
b) The Company has regular program of physical verification of its fixed assets bywhich fixed assets are verified in a phase manner over a period of year. In accordancewith this verification certain fixed assets were verified during the year and no materialdiscrepancies were noticed on such verification. In our opinion this periodicity ofphysical verification is reasonable having regard to the size of the Company and thenature of its assets.
c) As the company has no immovable property as Fixed Assets information required underthis para is not applicable.
(ii). The inventory includes Land including Banakhat rights in Land CompletedBuilding Construction work in progress and development material. Physical verification ofthese inventories have been conducted at the year end by the management. However anydiscrepancy noticed on such verification they have been recorded in the books ofaccounts.
Company has given contract for construction work including labour and material andhence no stock of materials is required to be maintained. Regarding other materials thesame is treated as directly consumed as and when purchased. Hence the company is notrequired to maintain any stock records and its question of its physical verification doesnot arise.
(iii). The Company has not granted any loans secured or unsecured to companies firmslimited liability partnerships or other parties covered in the register maintained u/s 189of the Companies Act.
Accordingly para 3(iii) of the Order is not applicable.
(iv). In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of section 185 and 186 of the Act with respectto loans and Investments made.
(v). In our opinion and according to the information and explanations given to us thecompany has not accepted any deposits within the meaning of Section 73 to 76 of theCompanies Act 2013 and rules framed there under.
(vi). We have been informed by the management no cost audit records has beenprescribed under section148(1) of the Companies Act 2013 in respect of products of thecompany.
(vii). Company is generally regular in depositing Provident Fund Dues with appropriateauthorities in time.
According to the information and explanations given to us no undisputed amount payablein respect of Income Tax Wealth Tax Value Added Tax Excise Duty Custom Duty ServiceTax Sales Tax and other statutory dues applicable to company were in arrears as at31/03/2016 for a period of more than six months from the date become payable.
However according to information and explanations given to us the following dues ofIncome Tax have not been deposited.
|Name of the Statue ||Name of dues ||Amount (in Rs) ||Period for which the amount relates ||Forum where dispute is pending |
|Income Tax Act1961 ||Income Tax & Penalty ||1942461/- ||Assessment Year 2013-2014 ||CIT (A) Ahmedabad |
(viii). The Company has not defaulted in repayment of loans or borrowing to thefinancial institutions bank Government or dues to the debenture holders during the year.
(ix). The Company did not raise any money by way of initial public offer or furtherpublic offer ( including debt instruments) and term loans during the year. Accordinglypara 3(ix) of the order is not applicable.
(x). According to the information and explanations given to us no material fraud bythe Company or on the Company by its offices or employees has been noticed or reportedduring the course of our audit.
(xi). According to the information and explanations given to us and based on ourexamination of the records of the Company the Company has paid/provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.
(xii). In our opinion and according to the information and explanations given to usthe Company is not a Nidhi Company. Accordingly para 3(xii) of the Order is notapplicable.
(xiii). According to the Information and explanations given to us an based on ourexamination of the records of the Company transactions with related parties are incompliance with section 177 an 188 of the Act wherever applicable and details of suchtransactions have been disclosed in the financial statements as required by applicableaccounting standards.
(xiv). According to the Information and explanations given to us and based on ourexamination of the records of the Company the Company has not made any preferentialallotment or private placement of shares or fully or partly convertible debentures duringthe year.
(xv). According to the Information and explanations given to us an based on ourexamination of the records of the Company the Company has not entered into non-cashtransactions with directors or persons connected with him. Accordingly para 3(xiv) is notapplicable.
(xvi). The Company is not required to be registered u/s 45-IA of the Reserve Bank ofIndia Act 1934.
Annexure B to Independent Auditors Report
Report on the Internal Financial Controls under Clause (i) of sub-section 3 of Section143 of the Companies Act 2013 (the Act) We have audited the internalfinancial controls over financial reporting of B Nanji Enterprises Ltd (theCompany) as of 31st March 2016 in conjunction with our audit the standalonefinancial statements of the Company for the year ended on that date.
Managements Responsibility for Internal Financial Controls :
The Companys Management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin Guidance Note on Audit of Internal Financial Controls over Financial Reporting issuedby the Institute of Chartered Accountants of India (ICAI). Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the Companys policies thesafeguarding of its assets the prevention and detection of frauds and errors theaccuracy and completeness of the accounting records and the timely preparation ofreliable financial information as required under the Companies Act 2013.
Auditors Responsibility :
Our responsibility is to express an opinion on the Companys internal financialcontrols over financial controls over financial reporting based on our audit. We conductedour audit in accordance with the Guidance Note on Audit of Internal Financial Controlsover Financial Reporting (the Guidance Note) and the Standards on Auditingissued by ICAI and deemed to be prescribed under section 143(10) the Companies Act 2013to the extent applicable to an audit of internal financial controls both applicable toann audit of Internal Financial Controls and both issued by the Institute of CharteredAccountants of India. Those Standards and the Guidance Note require that we comply withethical requirements and plan and platform the audit to obtain reasonable assurance aboutwhether adequate internal financial controls over financial reporting were established andmaintained and if such controls operated effectively in all material respects. Our auditinvolves performing procedures to obtain audit evidence about the adequacy of the internalfinancial controls system over financial reporting and their operating effectiveness. Ouraudit of internal financial controls over financial reporting included obtaining anunderstanding of internal financial controls over financial reporting assessing the riskthat a material weakness exists and testing and evaluating the design and operatingeffectiveness of internal control based on the assessed risk. The procedure selecteddepend on the auditors judgment including the assessment of the risk of materialmisstatement of the financial statement whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our opinion on the Companys internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls over Financial Reporting :
The Companys internal financial controls over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purpose in accordance withgenerally accepted accounting principle. A companys internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and disposition of the assets of the Company; (2) provide reasonableassurance the transactions are recorded as necessary to permit preparation of financialstatements in accordance with generally accepted accounting principles and that receiptsand expenditures of the Company are being made only in accordance with authorizations ofthe Management and directors of the Company; and (3) provide reasonable assuranceregarding prevention or timely detection of unauthorized acquisition use or dispositionof the Companys assets that could have a material effect on the financialstatements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting :
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subjects to the risk that internal control over financialreporting may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respect an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2016 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
| ||FOR ATUL DALAL & CO. |
| ||CHARTERED ACCOUNTANTS |
| ||FIRM REG. NO. 100760W |
| ||Sd.- |
| ||ATUL J. DALAL |
|AHMEDABAD ||PROPRIETOR |
|MAY 26 2016 ||MEM. NO. 14665 |