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Oberoi Realty Ltd.

BSE: 533273 Sector: Infrastructure
NSE: OBEROIRLTY ISIN Code: INE093I01010
BSE LIVE 19:40 | 19 Oct 466.45 3.40
(0.73%)
OPEN

446.00

HIGH

471.00

LOW

446.00

NSE 19:31 | 19 Oct 465.70 0.95
(0.20%)
OPEN

467.80

HIGH

472.80

LOW

461.30

OPEN 446.00
PREVIOUS CLOSE 463.05
VOLUME 3375
52-Week high 485.00
52-Week low 255.60
P/E 40.92
Mkt Cap.(Rs cr) 15,841
Buy Price 0.00
Buy Qty 0.00
Sell Price 466.45
Sell Qty 20.00
OPEN 446.00
CLOSE 463.05
VOLUME 3375
52-Week high 485.00
52-Week low 255.60
P/E 40.92
Mkt Cap.(Rs cr) 15,841
Buy Price 0.00
Buy Qty 0.00
Sell Price 466.45
Sell Qty 20.00

Oberoi Realty Ltd. (OBEROIRLTY) - Auditors Report

Company auditors report

To the Members of Oberoi Realty Limited

Report on the Standalone Financial Statements

We have audited the accompanying standalone financial statements of Oberoi RealtyLimited (‘the Company’) which comprise the Balance Sheet as at March 31 2016the Statement of Profit and Loss and the Cash Flow Statement for the year then ended anda summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Standalone 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 preparationand presentation of these standalone financial statements that give a true and fair viewof the financial position financial performance and cash flows of the Company inaccordance 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; makingjudgments 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 a true and fair viewand are free from material misstatement whether due 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 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 performing procedures to obtain audit evidence about the amounts andthe 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 financial control relevant to the Company’spreparation of the financial statements that give a true and fair view in order to designaudit procedures that are appropriate in the circumstances. An audit also includesevaluating the appropriateness of the accounting policies used and the reasonableness ofthe 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 March 31 2016 and 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 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the Annexure A a statement on the matters specified inthe paragraph 3 and 4 of the order.

2. As required by Section 143 (3) of the Act we report that: a. we have sought andobtained all the information and explanations which to the best of our knowledge andbelief were necessary for the purposes of our audit. b. in our opinion proper books ofaccount as required by law have been kept by the Company so far as it appears from ourexamination of those books; c. the Balance Sheet the 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 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 the written representations receivedfrom the directors as on March 31 2016 taken on record by the Board of Directors none ofthe directors is disqualified as on March 31 2016 from being appointed as a director interms of Section 164 (2) of the Act; f. with respect to the adequacy of the internalfinancial controls over financial reporting of the Company and the operating effectivenessof such controls refer to our separate report in Annexure B; and g. with respect to theother matters to be included in the Auditor’s Report in accordance with Rule 11 ofthe Companies (Audit and Auditors) Rules 2014 in our opinion and to the best of ourinformation and according to the explanations given to us: i. the Company has disclosedthe impact of pending litigations on its financial position in its financial statements– Refer Note 32 A 4 to the financial statements; ii. the Company has made provisionas required under the applicable law or accounting standards for material foreseeablelosses if any on long-term contracts including derivative contracts; iii. there were noamounts which were required to be transferred to the Investor Education and ProtectionFund by the Company.

For P. RAJ & CO.

Chartered Accountants

Firm Registration No. 108310W

P. S. Shah

Partner

Membership No. 44611

Mumbai April 29 2016

ANNEXURE - A TO THE AUDITOR’S REPORT

The Annexure referred to in paragraph 1 under the heading Report on Other Legal andRegulatory Requirements of Independent Auditors’ Report to the members of the Companyon the standalone financial statements for the year ended March 31 2016 we report that:

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

b. The fixed assets have been physically verified by the management as per a phasedprogramme of verification. In our opinion the frequency of verification is reasonablehaving regard to the size of the Company and the nature of its assets. The discrepanciesreported on verification were not material and have been properly dealt with in the booksof account.

c. According to the information and explanations given to us and on the basis of ourexamination of the records of the Company the title deeds of immovable properties areheld in the name of the Company.

ii. The inventories have been physically verified during the year by management. In ouropinion the frequency of verification is reasonable. The Company is maintaining properrecords of inventory. The discrepancies noticed on verification between physicalinventories and the book records were not material in relation to the operation of theCompany and the same have been properly dealt with in the books of account.

iii. The Company has granted unsecured interest free loans to parties covered in theregister maintained under section 189 of the Companies Act 2013 (‘the Act’).

a. In our opinion terms and conditions of the grant of such loans were not primafacie prejudicial to the interest of the Company b. In our opinion and according to theinformation and explanations given to us the terms of arrangements do not stipulate anyrepayment schedule as loans are repayable on demand..

c. There are no overdue amounts in respect of the loans granted to the parties listedin the register maintained under section 189 of the Act.

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 from the public. vi. We have broadlyreviewed the books of account maintained by the Company pursuant to the rules made by theCentral Government for the maintenance of cost records under subsection (1) of Section 148of the Act and are of the opinion that prima facie the prescribed accounts and recordshave been made and maintained.

vii. a. According to the information and explanations given to us and on the basis ofour examination of the books of account the company has been generally regular indepositing undisputed statutory dues including provident fund employees state insuranceincome-tax sales tax service tax duty of customs value added tax cess and othermaterial statutory dues during the year with the appropriate authorities. As on March 312016 there are no such undisputed dues payable for a period of more than six months fromthe date they become payable.

b. According to the information and explanations given to us there are no materialdues of provident fund employees state insurance sales tax duty of customs cess andany other material statutory dues which have not been deposited with the appropriateauthorities on account of any dispute. However according to information and explanationsgiven to us the following dues of Income Tax Service Tax Value Added Tax and Propertytax have not been deposited by the Company on account of disputes:

Nature of Statute Nature of the Dues Amount (Rs. in Lakh) Financial Year to which the amount relates Forum where dispute is pending
Service Tax Service Tax and penalty 17.71 2009-10 Customs Excise and Service Tax Appellate Tribunal Mumbai
Service Tax Service Tax and penalty 14.36 2008-09 to 2011-12 Additional Commissioner Service Tax Mumbai-II
Service Tax Service Tax and penalty 33.07 2010-11 to 2013-14 Additional Commissioner service Tax Audit Mumbai –III
Service Tax Service Tax and penalty 98.38 2014-15 Joint Commissioner Service Tax Mumbai-VI
MVAT VAT Interest and penalty 50.02 * 2006-07 Assistant Commissioner of Sales Tax Mazgaon Mumbai
MVAT VAT Interest and penalty 144.90 * 2007-08 Assistant Commissioner of Sales Tax Mazgaon Mumbai
MVAT VAT Interest and Penalty 198.06 # 2008-09 MSTAT Mumbai
MVAT VAT Interest and penalty 8.48 * 2010-11 Assistant Commissioner of Sales Tax Mazgaon Mumbai
MVAT VAT Interest and penalty 178.42 * 2011-12 Assistant Commissioner of Sales Tax Mazgaon Mumbai
Income Tax Income Tax 282.43 2005-06 Income Tax Appellate Tribunal Mumbai
Income Tax Income Tax 129.40 2007-08 Income Tax Appellate Tribunal Mumbai
Income Tax Income Tax 8.53 2008-09 Income Tax Appellate Tribunal Mumbai
Income Tax Income Tax 285.47 2009-10 Income Tax Appellate Tribunal Mumbai
Income Tax Income Tax 38.73 2009-10 Income Tax Appellate Tribunal Mumbai
Income Tax Income Tax and Interest 11.96 2012-13 Assessing officer (CPC TDS)Mumbai
Income Tax Income Tax and Interest 8.89 2013-14 Assessing Officer (CPC TDS) Mumbai
Income Tax Income Tax and Interest 0.21 2014-15 Commissioner of Income Tax (Appeals)
Income Tax Income Tax and Interest 2.77 2015-16 Commissioner of Income Tax (Appeals)
Municipal Taxes Property Tax 2.22 2010-11 The Assistant Assessor and Collector Assessment Department M.C.G.M
Municipal Taxes Property Tax 84.66 2011-12 The Assistant Assessor and Collector Assessment Department M.C.G.M
Municipal Taxes Property Tax 51.01 2012-13 The Assistant Assessor and Collector Assessment Department M.C.G.M
Municipal Taxes Property Tax 15.52 2013-14 The Assistant Assessor and Collector Assessment Department M.C.G.M
Municipal Taxes Property Tax 39.97 2014-15 The Assistant Assessor and Collector Assessment Department M.C.G.M
Municipal Taxes Property Tax 145.77 2015-16 The Assistant Assessor and Collector Assessment Department M.C.G.M
Municipal Taxes Property Tax 27.28 2011-12 to 2014-15 The Assistant Assessor and Collector Assessment Department M.C.G.M

In the following matters the department has preferred appeals at higher levels:

Nature of Statute Nature of the Dues Amount (Rs. in Lakh) Financial Year to which the amount relates Forum where dispute is pending
Income Tax Income Tax and Interest 67.76 2001-02 Supreme Court
Income Tax Income Tax and Interest 60.00 2002-03 Supreme Court
Income Tax Income Tax and Interest 415.63 2003-04 Supreme Court
Income Tax Income Tax and Interest 239.32 2004-05 Supreme Court
Income Tax Income Tax 46.68 2006-07 Supreme Court

* a stay order has been received against interest amount of H290.03 Lakh disputed andnot deposited. # net of amount deposited of H30 Lakh. viii. The Company does not have anyloans or borrowings from any financial institution banks government or debenture holdersduring the year. Accordingly paragraph 3(viii) of the Order is not applicable. ix. TheCompany did not raise any money by way of initial public offer or further public offer(including debt instruments) and term loans during the year. Accordingly paragraph 3 (ix)of the Order is not applicable. x. According to the information and explanations given tous no material fraud by the Company or on the Company by its officers or employees hasbeen noticed or reported during the course of our audit. xi. According to the informationand explanations give to us and based on our examination of the records of the Companythe Company has paid or provided for managerial remuneration in accordance with therequisite approvals mandated by the provisions of section 197 read with Schedule V to theAct. xii. In our opinion and according to the information and explanations given to usthe Company is not a nidhi company. Accordingly paragraph 3(xii) of the Order is notapplicable. xiii. According to the information and explanations given to us and based onour examination of the records of the

Company transactions with the related parties are in compliance with sections 177 and188 of the Act where applicable and details of such transactions have been disclosed inthe financial statements as required by the applicable accounting standards.

xiv. According to the information and explanations give to us and based on ourexamination of the records of the

Company the Company has made private placement of equity shares during the year underreview in accordance with the provision of section 42 of the Companies Act and amountraised has been used for the purpose for which the funds were raised.. xv. According tothe information and explanations given to us and based on our examination of the recordsof the

Company the Company has not entered into non-cash transactions with directors orpersons connected with him. Accordingly paragraph 3(xv) of the Order is not applicable.xvi. The Company is not required to be registered under section 45-IA of the Reserve Bankof India Act 1934.

For P. RAJ & CO.

Chartered Accountants

Firm Registration No. 108310W

P. S. Shah

Partner

Membership No. 44611

Mumbai April 29 2016

ANNEXURE - B TO THE AUDITOR’S 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 internal financial controls over financial reporting of OberoiRealty Limited ("the Company") as of March 31 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 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 (‘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 company’s policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Companies Act 2013.

Auditor’s 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 judgment 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 controlssystem over financial reporting.

Meaning of Internal Financial Controls over Financial Reporting

A company’s internal financial control over financial reporting is a processdesigned to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance withgenerally accepted accounting principles. A company’s internal financial control overfinancial reporting 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. providereasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles and thatreceipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and 3. provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company’s assets that could have a material effect on thefinancial 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 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 P. RAJ & CO.

Chartered Accountants

Firm Registration No. 108310W

P. S. Shah

Partner

Membership No. 44611

Mumbai April 29 2016