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Mahindra Lifespace Developers Ltd.

BSE: 532313 Sector: Infrastructure
NSE: MAHLIFE ISIN Code: INE813A01018
BSE LIVE 15:52 | 23 Nov 447.65 -1.55
(-0.35%)
OPEN

446.95

HIGH

453.10

LOW

445.50

NSE 15:31 | 23 Nov 449.10 1.20
(0.27%)
OPEN

449.25

HIGH

453.00

LOW

444.55

OPEN 446.95
PREVIOUS CLOSE 449.20
VOLUME 2422
52-Week high 528.10
52-Week low 319.53
P/E 51.81
Mkt Cap.(Rs cr) 2,297
Buy Price 447.65
Buy Qty 5.00
Sell Price 0.00
Sell Qty 0.00
OPEN 446.95
CLOSE 449.20
VOLUME 2422
52-Week high 528.10
52-Week low 319.53
P/E 51.81
Mkt Cap.(Rs cr) 2,297
Buy Price 447.65
Buy Qty 5.00
Sell Price 0.00
Sell Qty 0.00

Mahindra Lifespace Developers Ltd. (MAHLIFE) - Auditors Report

Company auditors report

To the Members of Mahindra Lifespace Developers Limited Report on the Ind AS FinancialStatements

1. We have audited the accompanying standalone Ind AS financial statements of MAHINDRALIFESPACE DEVELOPERS LIMITED ("the Company") which comprise the Balance Sheetas at 31st March 2017 the Statement of Profit and Loss (including OtherComprehensive Income) the Statement of Changes in Equity and the Cash Flow Statement forthe year then ended and a summary of significant accounting policies and otherexplanatory information.

Management's Responsibility for the Financial Statements

2. The Company's Board of Directors is responsible for the matters in section 134(5) ofthe Companies Act 2013 ("the Act") with respect to the preparation of these IndAS financial statements that give a true and fair view of the financial positionfinancial performance and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the Indian Accounting Standardsspecified under Section 133 of the Act.

3. This responsibility also includes the maintenance of adequate accounting records inaccordance with the provision of the Act for safeguarding of the assets of the Company andfor preventing and detecting the frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of internal financialcontrol that were operating effectively for ensuring the accuracy and completeness of theaccounting records relevant to the preparation and presentation of the Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's Responsibility

4. Our responsibility is to express an opinion on these standalone Ind AS financialstatements based on our audit.

5. 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 thereunder.

6. 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 Ind AS financial statements are free from material misstatement.

7. An audit involves performing procedures to obtain audit evidence about the amountsand disclosures in the Ind AS financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of theInd AS financial statements whether due to fraud or error. In making those riskassessments the auditor considers internal financial control relevant to the Company'spreparation of the Ind AS financial statements that give true and fair view in order todesign audit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of theaccounting estimates made by Company's Directors as well as evaluating the overallpresentation of the Ind AS financial statements.

8. We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone Ind AS financial statements.

Opinion

9. In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid Ind AS financial statements give the information required bythe Act in the manner so required and give a true and fair view in conformity with theaccounting principles generally accepted in India of the state of affairs of the Companyas at 31st March 2017 and its profit and cash flows for the year ended onthat date.

Other Matters

10. The comparative financial information of the Company for the year ended March 312016 and the transition date opening balance sheet as at April 1 2015 prepared inaccordance with Ind AS included in these Ind AS financial statements have been audited byus. The report on the comparative financial information and the opening balance sheetdated June 6 2016 expressed an unmodified opinion.

Report on other Legal and Regulatory Requirements

11. As required by the Companies (Auditor's Report) Order2016 issued by the CentralGovernment of India in terms of sub-section (11) of section 143 of the Act (the"Order") and on the basis of such checks of the books and records of theCompany as we considered appropriate and according to the information and explanationsgiven to us we give in the Annexure A a statement on the matters specified in theparagraphs 3 and 4 of the Order.

12. As required by section 143(3) of the Act 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 purposes 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 the Statement of Profit and Loss the Statement of Changes inEquity and the Cash Flow Statement dealt with by this Report are in agreement with thebooks of account;

d) In our opinion the aforesaid Ind AS financial statements comply with the AccountingStandards specified under Section 133 of the Act;

e) On the basis of written representations received from the directors as on 31 March2017 taken on record by the Board of Directors none of the directors is disqualified ason 31 March 2017 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.

g) With respect to the other matters included in the Auditor's Report in accordancewith Rule 11 of the Companies (Audit and Auditors) Rules 2014 (as amended) in our opinionand to our best of our information and according to the explanations given to us:

i. The Company has disclosed the impact of pending litigations on its financialposition in its Ind AS financial statements.

ii. The Company has made provision as required under the applicable law or accountingstandards for material foreseeable losses if any on long-term contracts. The Company didnot have any derivative contracts.

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and protection Fund by the Company.

iv. The Company has provided requisite disclosures in its financial statements as toholdings as well as dealings in the specified bank notes during the period from 8thNovember to 30th December 2016 and these are in accordance with the books ofaccounts maintained by the Company.

For B. K. Khare and Co.
Chartered Accountants
Firm's Registration No. : 105102W
Padmini Khare Kaicker
Place: Mumbai Partner
Date: 22nd April 2017 Membership No. : 44784

ANNEXURE "A" TO THE INDEPENDENT AUDITOR'S REPORT

Referred to in paragraph 9 of our report of even date on the accounts of Members ofMahindra Lifespace Developers Limited for the year ended 31st March 2017

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

ii) Fixed assets have been physically verified by the management during the year and nomaterial discrepancies were noted on such verification.

iii) The title deeds of immovable properties are held in the name of the Company.

2) i) The management has conducted physical verification of inventory at reasonableintervals during the year.

ii) The procedures of physical verification of inventory followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.

iii) The Company is maintaining proper records of inventory and no materialdiscrepancies were noticed on physical verification.

3) According to the information and explanations given to us the Company has grantedunsecured loans to companies covered in the register maintained under section 189 of theCompanies Act 2013 at 31st March 2017.

i) The terms and conditions of the grant of such loans are not prejudicial to thecompany's interest

ii) The above mentioned loans are given for tenure of 5 years repayable on 31stMarch 2019 with certain repayment options available to the parties. These options havenot been exercised by the parties upto 31st March 2017. There are no specificterms mentioned for payment of interest.

iii) In view of above there is no overdue of principal and interest in respect of suchloans.

4) In our opinion and according to the information and explanations given to us theCompany has not given any guarantee for loans taken by others from banks or financialinstitutions.

5) In our opinion and according to the information and explanations given to us theCompany has not accepted any deposits from the public within the meaning of section 73 to76 of the Companies Act 2013 and the rules framed thereunder.

6) As informed to us the maintenance of cost records has been prescribed by theCentral Government under section 148(1) of the Companies Act 2013 in respect of theactivities carried on by the Company. We have broadly reviewed the books of accountrelating to materials labour and other items of cost maintained by the Company pursuantto the Rules made by the Central Government for the maintenance of cost records undersection and we are of the opinion that prima facie the prescribed accounts and recordshave been made and maintained.

7) i) According to the records of the Company the Company is generally regular indepositing with the appropriate authorities undisputed statutory dues including ProvidentFund Employees' State Insurance Income Tax Sales Tax Service Tax Customs Duty ValueAdded Tax and other statutory dues applicable to it. The provisions of Excise Duty arenot applicable to the operations of the Company.

ii) According to the information and explanations given to us there are no undisputedamounts payable in respect of Provident Fund Employees' State Insurance Income TaxSales Tax Service Tax Customs Duty and Value Added Tax that were outstanding at theyear end for a period of more than six months from the date they became payable.

iii) According to the information and explanations given to us dues of income-taxsales tax service tax customs duty and work contract tax:

Sr No Assessment Year Nature of Dues Amount Rs. in lakh Forum where case is pending
1 2011-12 Income Tax 62.17 Commissioner of Income Tax (Appeals)
2 2006-07 Service Tax 67.70 Chennai III Comm.

8) The Company has not defaulted in repayment of loans or borrowings to a financialinstitution bank Government or repayment of dues to debenture holders.

9) The Company has not raised money by way of initial public offer or further publicoffer (including debt instruments) and the term loans were applied for the purposes forwhich those are raised.

10) Based on the audit procedures performed and as per the information and explanationsgiven to us by management no fraud on or by the Company has been noticed or reportedduring the year.

11) Managerial remuneration paid is in accordance with the requisite approvals mandatedby the provisions of section 197 read with Schedule V to the Companies Act 2013.

12) The Company not being a Nidhi Company the para 3(xii) of the Order is notapplicable to the Company.

13) According to the information and explanations given to us all transactions withrelated parties during the year are in compliance with sections 177 and 188 of CompaniesAct 2013 and the details of the same have been disclosed in the financial statements asrequired by the applicable accounting standards.

14) The Company has not made any preferential allotment or private placement of sharesor fully or partly convertible debentures during the year under review. Hence provisionsof para 3(xiv) of the Order are not applicable to the Company.

15) According to the information and explanations given to us the Company has notentered into non-cash transactions with directors or persons connected with him. Henceprovisions of para 3(xv) are not applicable to the Company.

16) The Company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Hence provisions of para 3(xvi) of the Order are not applicableto the Company.

For B. K. Khare and Co.
Chartered Accountants
Firm's Registration No. : 105102W
Padmini Khare Kaicker
Place: Mumbai Partner
Date: 22nd April 2017 Membership No. : 44784

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT

of Even Date on the Standalone Financial Statements of Mahindra Lifespace DevelopersLimited

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 internal financial controls over financial reporting of MahindraLifespace Developers Limited ("the Company") as of March 31 2017 in conjunctionwith our audit of the standalone Ind AS financial statements of the Company for the yearended on that date.

Management's Responsibility for Internal Financial Controls

The Company's 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 the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial effect on the financial statements.

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 subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.

Opinion

In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2017 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 B. K. Khare and Co.
Chartered Accountants
Firm's Registration No. : 105102W
Padmini Khare Kaicker
Place: Mumbai Partner
Date: 22nd April 2017 Membership No. : 44784