To the Members of COUNTRY CONDO'S LIMITED
REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of COUNTRY CONDO'S LIMITED("the Company") which comprises the Balance Sheet as at March 31 2015 theStatement of Profit and Loss and Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
MANAGEMENT'S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ('the Act') with respect to the preparation of thesefinancial statements that give a true and fair view of the financial position financialperformance and cash flows of the Company in accordance with the accounting principlesgenerally accepted in India including the Accounting Standards specified under Section133 of the Act read with rule 7 of Companies (Accounts) Rules 2014. This responsibilityincludes maintenance of adequate accounting records in accordance with the provisions ofthe Act for safeguarding the assets of the Company and for preventing and detecting fraudsand other irregularities; selection and application of appropriate accounting policies;making judgments and estimates that are reasonable and prudent; design implementation andmaintenance of adequate internal financial controls that are operating effectively forensuring the accuracy and completeness of the accounting records relevant to thepreparation and presentation of the financial statements that give a true and fair viewand are free from material misstatement whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
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 the Rules made there under.
We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement An audit involves performingprocedures to obtain audit evidence about the amounts and disclosures in the financialstatements. The procedures selected depend on the auditor's judgment including theassessment of the risks of material misstatement of the financial statements whether dueto fraud or error. In making those risk assessments the auditor considers internalfinancial control relevant to the Company's preparation of the financial statements thatgive a true and fair view in order to design audit procedures that are appropriate in thecircumstances but not for the purpose of expressing an opinion on whether the Company hasin place an adequate internal financial controls system over financial reporting and theoperating effectiveness of such controls. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the financialstatements:
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at 31stMarch 2015 its profit and its cash flows for the year ended on that date
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
1. As required by the Companies (Auditor's Report) Order 2015 ("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the Annexure a statement on the matters Specified in paragraphs 3 and4 of the Order.
2. As required by section 143(3) of the Act we further report that: a) we have soughtand obtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purpose of our audit; b) in our opinion proper books ofaccount as required by law have been kept by the Company so far as appears from ourexamination of those books; c) the Balance Sheet Statement of Profit and Loss and theCash Flow Statement dealt with by this Report are in agreement with the books of account;d) In our opinion the aforesaid financial statements comply with the applicableAccounting Standards specified under Section 133 of the Act read with Rule 7 of theCompanies (Accounts) Rules 2014. e) On the basis of written representations received fromthe directors as on March 31 2015 and taken on record by the Board of Directors none ofthe directors is disqualified as on March 31 2015 from being appointed as a director interms of Section 164(2) of the Act. f) With respect to other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules2014 in our opinion and to the best of our information and according to the explanationsgiven to us: i. The company has disclosed the impact of pending litigations as at March31 2015 on its financial position in its notes to financial statements. ii. The Companydid not have any long-term contracts including derivative contracts for which there wereany material foreseeable losses; iii. There were no amounts which were required to betransferred to the Investor Education and Protection Fund by the company.
For P. Murali & Co. Chartered Accountants Firm Registration No: 007257S
P.MURALI MOHANA RAO Partner Membership No. 023412
Place: Hyderabad Date: 30-05-2015
Annexure referred to in paragraph 1 of Our Report of even date to the members ofCountry Condo's Limited on the accounts of the Company for the year ended 31st March 2015under "Report on other Legal & Regulatory Requirements"
On the basis of such checks as we considered appropriate and according to theinformation and explanations given to us during the course of our audit we report that:
i. (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) As explained to us fixed assets have been physically verified by the management atregular intervals; as informed to us no material discrepancies were noticed on suchverification.
ii. (a) The Inventory has been physically verified during the year by the Managementand in our opinion the frequency of verification is reasonable.
(b) In our opinion the procedures of the physical verification of inventory followedby the Management are reasonable and adequate in relation to the size of the Company andthe nature of its business.
(c) The Company is maintaining proper records of inventory and as explained to us nomaterial discrepancies were noticed on physical verification of stocks as compared to bookrecords.
iii. (a) The Company has given loans to companies covered in the register maintainedunder section 189 of the Companies Act 2013.The outstanding amount of the said advanceaggregating to Rs. 12741193/-.
(b) Terms and conditions on which advance have been granted to parties listed in theregister maintained under section 189 is not prejudicial to the interest of company.
(c) According to the information and explanations given to us the company is regularis receipt loan given to Companies covered in the register maintained U/s.189 of theCompanies Act 2013.
iv. In our opinion and according to the information and explanations given to us thereis adequate internal control system commensurate with the size of the Company and thenature of its business for the purchase of fixed assets and for the sale of services.Further on the basis of our examination of the books and records of the Company andaccording to the information and explanations given to us no major weakness has beennoticed or reported.
v. The Company has not accepted any deposits from the public covered under Section 73to 76 of the Companies Act 2013.
vi. In respect of the Company the Central Government has not prescribed maintenance ofcost records under sub-section (1) of Section 148 of the Companies Act 2013.
vii. (a) According to the information and explanations given to us and based on therecords of the Company examined by us the Company is regular in depositing the undisputedstatutory dues including Provident Fund Employee Staff Insurance Service Tax Sales TaxIncome-tax and other material statutory dues as applicable with the appropriateauthorities in India;
(b) There were no undisputed amounts payable in respect of Provident Fund EmployeeStaff Insurance Service Tax Sales Tax Income-tax and other material statutory dues inarrears as at 31st March 2015 for a period of more than 6 months for the date they becamepayable.
(c) According to the information and explanations given to us and based on the recordsof the Company examined by us there are no dues of Provident Fund Employee StaffInsurance Service Tax Sales Tax Income-tax and other material statutory dues asapplicable which have not been deposited on account of any disputes.
(d) There are no amounts that are due to be transferred to the Investors Education andProtection Fund in accordance with the relevant provisions of the Companies Act 1956 [1of 1956] and rules made there under.
viii. The Company has been registered for a period of not less than 5 years and itsaccumulated losses at the end of the financial year are not more than fifty percent of itsnet worth and the company has not incurred cash losses in this financial year and in theimmediately preceding financial year.
ix. In our opinion and according to the information and explanations given to us thecompany has not defaulted in repayment of dues to Financial Institutions or Banks. TheCompany has not issued any debentures.
x. According to the information and explanations given to us the Company has givencorporate guarantee and Mortgaged their property for loans taken by M/s.Country Club(India) Limited from Banks and Financial Institutions namely Vijaya Bank Bank of IndiaUnion Bank of India and Karvy Financial Services Limited. The terms and conditions are notprejudicial to the interest of the company.
xi. In our opinion and according to the information and explanations given to us theterm loans have been applied on an overall basis for the purposes for which they wereobtained.
xii. To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the Company and no material fraud on the Company has been noticedor reported during the year.
For P. Murali & Co. Chartered Accountants Firm Registration No. 007257S
P.MURALI MOHANA RAO Partner M.No. 023412
Place: Hyderabad Date: 30-05-2015