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Nitesh Estates Ltd.

BSE: 533202 Sector: Infrastructure
NSE: NITESHEST ISIN Code: INE639K01016
BSE LIVE 15:40 | 26 Sep 8.88 -0.03
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NSE 15:31 | 26 Sep 8.90 0
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HIGH

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OPEN 9.00
PREVIOUS CLOSE 8.91
VOLUME 232455
52-Week high 14.35
52-Week low 7.13
P/E
Mkt Cap.(Rs cr) 130
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 9.00
CLOSE 8.91
VOLUME 232455
52-Week high 14.35
52-Week low 7.13
P/E
Mkt Cap.(Rs cr) 130
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Nitesh Estates Ltd. (NITESHEST) - Auditors Report

Company auditors report

To

The Members of Nitesh Estates Limited

Report on the Standalone Financial Statements

We have audited the accompanying financial statements of NITESH ESTATES LIMITED ("theCompany") which comprise the Balance Sheet as at 31st March 2016 the Statement ofProfit and Loss and the Cash Flow Statement for the year then ended and a summary ofsignificant 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 ofthese 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 accepted in India including the Accounting Standards specified under Section133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding the assets of the Company and for preventingand detecting frauds and other irregularities selection and application of appropriateaccounting policies making judgements and estimates that are reasonable and prudent anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the Standalone financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.

Auditor's 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 the Rules made thereunder.

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 standalone financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the standalone financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thestandalone 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 standalone financial statements that give a true and fair view in orderto design audit procedures that are appropriate in the circumstances. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by the Company's Directors 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.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the 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 2016 and its profit / loss and its cash flows for the year ended onthat date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order 2015 ('the Order') issued bythe Central Government of India in terms of sub-section (11) of Section 143 of the Act wegive in "Annexure A" a statement on the matters specified in paragraphs 3 and 4of the said Order.

2. 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 it appears from our examination of those books.

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

d) In our opinion the aforesaid standalone financial statements comply with theAccounting 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 from the Directors as on 31stMarch 2016 taken on record by the Board of Directors none of the Directors isdisqualified as on 31st March 2016 from being appointed as director in terms of Section164(2) of the Act.

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 Auditor's 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. The Company has disclosed the impact of pending litigations on its financialposition in its financial statements - Refer Note 25 to the financial statements;

II. The Company has no material foreseeable losses if any on long-term contractsincluding derivative contracts .

III. The Company is not required to transfer any amount to the Investor Education andProtection Fund.

For and on behalf of
RAY & RAY
Chartered Accountants
Firm Registration No. 301072E
Mrinal Kanti Bandopadhyay
Partner
Membership No. 051472
Bangalore
28th May 2016

ANNEXURE A TO THE AUDITORS' REPORT

The Annexure referred to in our report to the members of NITESH ESTATES LIMITED for theyear ended March 312016

We report that:

(i) (a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets;

(b) According to the information and explanation given to us most of the fixed assetshave been physically verified by the Management during the year and no materialdiscrepancies were noted on such verification. In our opinion the frequency of suchverification is reasonable having regard to the size of the company and the nature of itsassets.

(c) there are no immovable properties held in the name of the company.

(ii) The company is in the business of real estate development and related services andholds inventories in the form of land properties under development and constructedproperties. In our opinion and according to the information and explanations given to ushaving regard to the nature of inventory the procedures of physical verification by wayof verification of title deeds site visits by the Management and certification of extentof work completion by competent persons are reasonable and adequate in relation to thesize of the Company and the nature of its business

(iii) The Company has not granted any loans secured or unsecured to/from companiesfirms or other parties covered in the Register maintained under Section 189 of theCompanies Act 2013.

(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 the loans and investments made.

(v) The Company has not accepted any deposits during the year and so the directivesissued by the Reserve Bank of India and the provisions of sections 73 to 76 or any otherrelevant provisions of the Companies Act 2013 are not applicable.

(vi) We have broadly reviewed the books of account maintained by the Company pursuantto the rules made by the Central Government for the maintenance of cost records under subsection (1) of Section 148 of the Companies Act 2013 in respect of real estate anddevelopment activities and are of the opinion that prima facie the prescribed accounts andrecords have been made and maintained. We have however not made a detailed examinationof the records with a view to determining whether they are accurate or complete. To thebest of our knowledge and according to the information and explanations given to us theCentral Government has not prescribed the maintenance of cost records for any otherproduct of the Company.

(vii) (a) According to the information and explanations given to us the company isgenerally regular in depositing undisputed statutory dues including Provident FundEmployees' State Insurance Income-Tax Sales-Tax Service Tax Duty of Customs Duty ofExcise Value Added Tax Cess and any other statutory dues to the appropriate authorities.

There are no undisputed amounts payable in respect of Provident Fund Employees' StateInsurance Income-Tax Sales- Tax Service Tax Duty of Customs Duty of Excise ValueAdded Tax Cess and any other statutory dues and other material statutory dues in arrearsas at 31 March 2016 for a period of more than six months from the date they becamepayable.

(b) Details of dues of Income Tax Sales Tax Wealth Tax Service Tax or duty ofcustoms or duty of excise or value added tax or cess which have not been deposited as on31 March 2016 on account of disputes are given below:

Name of the statute Nature of the dues Amount (Rs. in lakhs) Period to which amount Pertains Forum where Disputes is Pending
Income Tax Act Income Tax 22.50 AY-2011-2012 Asst Commissioner of Income Tax Appeals

(viii) The company has not defaulted in repayment of loans or borrowing to a financialinstitution bank Government or dues to debenture holders.

(ix) The company has not raised any money raised by way of initial public offer orfurther public offer (including debt instruments) and term loans were applied for thepurposes for which those are raised.

(x) No fraud on or by the company has been noticed or reported during the year;

(xi) No managerial remuneration has been paid or provided during the year.

(xii) Company is not a nidhi company.

(xiii) All transactions with the related parties are in compliance with sections 177and 188 of Companies Act 2013 where applicable and the details have been disclosed in theFinancial Statements etc. as required by the applicable accounting standards;

(xiv) The company has not made any preferential allotment or private placement ofshares or fully or partly convertible debentures during the year under review;

(xv) The company has not entered into any non-cash transactions with directors orpersons connected with him;

(xvi) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934.

For and on behalf of
RAY & RAY
Chartered Accountants
Firm Registration No. 301072E
Mrinal Kanti Bandopadhyay
Bangalore Partner
28th May 2016 Membership No. 051472

Annexure - B to the Auditors' Report- Report on the Internal Financial Controls underClause (i) of Sub-section 3 of Section 143 of the Companies Act 2013 ("theAct")

We have audited the internal financial controls over financial reporting of NITESHESTATES LIMITED ("the Company") as of 31 March 2016 in conjunction with ouraudit of the standalone financial statements of the Company for the year ended on thatdate. Management's Responsibility for Internal Financial Controls The Company's managementis responsible for establishing and maintaining internal financial controls 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 ('ICAI'). These responsibilities include the design implementationand maintenance of adequate internal financial controls that were operating effectivelyfor ensuring the orderly and efficient conduct of its business including adherence tocompany's policies the safeguarding of its assets the prevention and detection of fraudsand errors the accuracy and completeness of the accounting records and the timelypreparation of reliable financial information as required under the 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 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 procedures selecteddepend on the auditor's judgment including the assessment of the risks of materialmisstatement of the financial statements whether due to fraud or error. We believe thatthe audit evidence we have obtained is sufficient and appropriate to provide a basis forour audit opinion on the Company's internal financial controls system over financialreporting.

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 ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material 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. In our opinionthe Company has in all material respects an adequate internal financial controls systemover financial reporting and such internal financial controls over financial reportingwere

operating effectively as at 31 March 2016 based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India.

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 31 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 and on behalf of
RAY & RAY
Chartered Accountants
Firm Registration No. 301072E
Mrinal Kanti Bandopadhyay
Bangalore Partner
28th May 2016 Membership No. 051472