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Lok Housing & Constructions Ltd.

BSE: 500256 Sector: Infrastructure
NSE: LOKHSG ISIN Code: INE367C01011
BSE LIVE 15:14 | 22 May Stock Is Not Traded.
NSE 05:30 | 01 Jan Stock Is Not Traded.
OPEN 4.11
PREVIOUS CLOSE 4.32
VOLUME 32326
52-Week high 4.97
52-Week low 3.09
P/E
Mkt Cap.(Rs cr) 19
Buy Price 0.00
Buy Qty 0.00
Sell Price 4.11
Sell Qty 9909.00
OPEN 4.11
CLOSE 4.32
VOLUME 32326
52-Week high 4.97
52-Week low 3.09
P/E
Mkt Cap.(Rs cr) 19
Buy Price 0.00
Buy Qty 0.00
Sell Price 4.11
Sell Qty 9909.00

Lok Housing & Constructions Ltd. (LOKHSG) - Auditors Report

Company auditors report

INDEPENDENT AUDITORS

To the Members of

LOK HOUSING AND CONSTRUCTIONS LIMITED

Report on the Financial Statements

1. We have audited the accompanying financial statements of LOK HOUSING ANDCONSTRUCTIONS LIMITED (the Company) which comprise the Balance Sheet as at March 312014 and the Statement of Profit and Loss and Cash Flow Statement for the year thenended and other a summary of significant explanatory information.

Management’s Responsibility for the Financial Statements.

2. Management is responsible for the preparation of these financial statements thatgive a true and fair view of the performance financial position financial and cash flowsof 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 GeneralCircular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs inrespect of section 133 of the Companies Act 2013. This responsibility includes thedesign implementation and maintenance of internal control relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.

Auditors’ Responsibility

3. Our responsibility is to express an opinion on these financial statements based onour audit. We conducted our audit in accordance with the Standards on Auditing issued bythe Institute of Chartered Accountants of India. Those Standards require that we complywith ethical requirements and plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the financial statements. The procedures selected depend on theauditor’s judgment including the assessment of the risks of material misstatement ofthe financial statements whether due to fraud or error. In making those risk assessmentsthe auditor considers internal control relevant to the Company’s preparation and fairpresentation of the financial statements in order to design audit procedures that areappropriate in the circumstances. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of the accounting estimates made bymanagement 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 toprovide a basis for our audit opinion.

Opinion

6. In our opinion and to the best of our information and according to the explanationsgiven to us the financial statements give the information required by the Act in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India subject to the Company having not madeprovision for additional consideration / compensation claimed by Mr.Suresh Thanawala andothers a secured creditor for land development rights as the same being disputed andunder 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 March31 2014;

b) in the case of the Statement of Profit and Loss of the profit for the year ended onthat date; and

c) in the case of the Cash Flow Statement of the cash flows for the year ended on thatdate.

Report on Other Legal and Regulatory Requirements

7. As required by the Companies (Auditor’s Report) Order 2003 (the Order) issuedby the Central Government of India in terms of sub-section (4A) of section 227 of the Actwe give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of theOrder.

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 ourknowledge 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 theCompany so far as appears from our examination of those books

c) the Balance Sheet Statement of Profit and Loss and Cash Flow Statement dealt withby this Report are in agreement with the books of account.

d) in our opinion the Balance Sheet Statement of Profit and Loss and Cash FlowStatement comply with the Accounting Standards referred to in subsection (3C) of section211 of the Companies Act 1956 read with The General Circular 15/2013 dated 13thSeptember 2013 of the Ministry of Corporate Affairs in respect of section 133 of theCompanies Act 2013;

e) on the basis of written representations received from the directors as on March 312014 and taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2014 from being appointed as a director in terms of clause (g) ofsub-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 whichthe cess is to be paid under section 441A of the Companies Act 1956 nor has it issued anyRules under the said section prescribing the manner in which such cess is to be paid nocess is due and payable by the Company.

For Bhupendra Shroff & Co.
Chartered Accountants
Firm No.: 101458W
B. N. Shroff
Partner
Membership No.: 5039
Place : Mumbai
Date : May 29th 2014

The Annexure referred to in paragraph 7 of the Our Report of even date to the membersof LOK HOUSING AND CONSTRUCTIONS LIMITED on the accounts of the Company for the year ended31st March 2014.

On the basis of such checks as we considered appropriate and according to theinformation and explanation given to us during the course of our audit we report that:

1a. The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.

1b. As per the information and explanations given to us physical verification of fixedassets has been carried out at regular intervals and we have been informed that nomaterial discrepancies were noticed on such verification. In our opinion the frequency ofverification is reasonable having regard to the size of the Company and nature of itsfixed assets.

1c. During the year the Company has not disposed of any substantial / major part offixed assets.

2a. As per the information furnished the inventories have been physically verifiedduring the year by the management. In our opinion having regard to the nature andlocation of stocks the frequency of the physical verification is reasonable.

2b. In our opinion and according to the information and explanations given to us theprocedure for physical verification of inventory followed by the management are reasonableand 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 opiniondiscrepancies noticed on physical verification of stocks were not material in relation tothe operations of the Company and the same have been properly dealt with in the books ofaccount.

3a. As per the information furnished the Company has outstanding unsecured advancesgiven aggregating to Rs. 0.65 lacs (previous year Rs. 6.49 lacs) to 1 party (previous year3 party) listed in the register maintained under Section 301 of the Companies Act 1956the 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 yearnil) from any party (previous year no party) listed in the register maintained underSection 301 of the Companies Act 1956 the terms of which are prima facie not prejudicialto the interest of the Company.

4. In our opinion and according to the information and explanations given to us thereare adequate internal control procedures commensurate with the size of the Company and thenature of its business with regard to purchase of inventory and fixed assets and for thesale of goods. During the course of our audit no major weakness has been noticed in theinternal control procedures.

5a. Based on the audit procedures applied by us and according to the information andexplanations provided by the management we are of the opinion that the transactions thatneed 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 thereare no transactions exceeding the value of Rs. five lacs each which have been made atprices which are unreasonable having regard to prevailing market prices at the relevanttime.

6. In our opinion the Company has not accepted any deposits during the year from thepublic within the meaning of the provisions of Section 58A and 58AA of the Companies Act1956 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 theCompany 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 theCentral Government under section 209(1)(d) of the Companies Act1956 in respect of theactivities carried on by the Company. On our verification and as per information andexplanation 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 examinedby us the Company is generally depositing with appropriate authorities undisputedstatutory dues including provident fund investor education and protection fundemployees’ state insurance income-tax sales-tax wealth-tax customs dutyexcise-duty cess and other statutory dues wherever applicable. Undisputed arrears ofstatutory dues outstanding as at 31st March 2014 for a period of more than six monthsfrom the date they became payable are as under:

Nature of dues Period Undisputed Tax
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 (Lok Enterprises) 0.96
Income tax F.Y. 2010-11 (Lok Enterprises) 96.73
Income tax F.Y. 2011-12 (Lok Enterprises) 0.45
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 customswealth-tax excise duty cess (excluding interest) which have not been deposited onaccount 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 Mumbai 10.44
Income tax F.Y. 2008-09 CIT(A) 1045.41
Income tax F.Y. 2008-09 ITAT Mumbai 26.46
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 interestu/s 220 of the Income Tax Act 1961.

10. There are no accumulated losses of the Company as on 31st March 2014. The Companyhas not incurred any cash loss during the financial year covered by our audit but hasincurred cash loss of Rs.16.55 lacs in the immediately preceding financial year.

11. During the year repayment of dues to financial institutions and banks are partlymade and as per the Company’s records the amount due in this respect is as under:

Sr. No. Name of Insti- tution / Bank Amount of due o/s on 31-03-2014 Over due since
(Rs. in lacs)
1. State Bank of India 1656.27 31-03-2014

12. Based on our examination of the records and the information and explanations givento us the Company has not granted any loans and/or advances on the basis of security byway 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 theCompany 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 theCompany has not given any guarantees for loans taken by others from banks or FinancialInstitutions.

16. In our opinion and according to the information and explanation given to us on anoverall basis the term loans have been applied for the purpose of which they areobtained.

17. According to the information and explanations given to us and on the basis of anoverall examination of the Balance sheet of the Company in our opinion no funds raised onshort-term basis have been used for long-term investment. Similarly no long-term fundshave 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 madeany preferential allotment of shares during the year.

19. According to the information and explanations given to us during the year theCompany has not issued any debentures.

20. According to the information and explanations given to us during the year theCompany has not raised any money by way of public issues.

21. According to the information and explanations given to us no material fraud on orby 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