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Alpine Housing Development Corporation Ltd.

BSE: 526519 Sector: Infrastructure
NSE: ALPINEHOU ISIN Code: INE840D01015
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NSE 05:30 | 01 Jan Alpine Housing Development Corporation Ltd
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VOLUME 1474
52-Week high 32.05
52-Week low 8.62
P/E 12.19
Mkt Cap.(Rs cr) 36
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 20.50
CLOSE 20.00
VOLUME 1474
52-Week high 32.05
52-Week low 8.62
P/E 12.19
Mkt Cap.(Rs cr) 36
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Alpine Housing Development Corporation Ltd. (ALPINEHOU) - Auditors Report

Company auditors report

TO THE MEMBERS OF

ALPINE HOUSING DEVELOPMENT CORPORATION LIMITED

Report on the Financial Statements:

Opinion

We have audited the accompanying financial statements of Alpine Housing DevelopmentCorporation Limited ("the Company") which comprise the Balance Sheet as at 31March 2020 the Statement of Profit and Loss (including Other Comprehensive Income) thestatement of Changes in Equity and the Statement of Cash Flows for the year ended on thatdate and a summary of significant accounting policies and other explanatory information(hereinafter referred to as the financial statements). In our opinion and to the best ofour information and according to the explanations given to us the aforesaid financialstatements give the information required by the Companies Act 2013 ("the Act")in the manner so required and give a true and fair view in conformity with the IndianAccounting Standards prescribed under section 133 of the Act read with the Companies(Indian Accounting Standards) Rules 2015 as amended ("Ind AS") and otheraccounting principles generally accepted in India of the state of affairs of the Companyas at March 31 2020 the profit and total comprehensive income changes in equity and itscash flows for the year ended on that date.

Basis for Opinion

We conducted our audit of the financial statements in accordance with the Standards onAuditing ("SA"s) specified under section 143(10) of the Act. Ourresponsibilities under those Standards are further described in the Auditorsresponsibilities for the audit of financial statements section of our report. We areindependent of the Company in accordance with the Code of Ethics issued by the instituteof Chartered Accountants of India ("ICAI") together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules made there under and we have fulfilled our otherethical responsibilities in accordance with these requirements and the ICAI's Code ofEthics. We believe that the audit evidence obtained by us is sufficient and appropriate toprovide a basis for our audit opinion on the financial statements.

Key Audit Matters

Key Audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined the matters described below to be the key audit matters to be communicatedin our report.

A. Measurement of Revenue on contractual projects recorded over time which is dependenton the estimates of the costs to complete – Refer note 46(A)(b) & (c)

Revenue recognition from the contractual projects represents a significant portion ofthe total revenues of the company. Revenue recognition from the contractual projectsinvolves significant estimates related to measurement of costs to complete the projects.Revenue from projects is recorded based on company's assessment of the work completedcosts incurred and accrued and the estimate of the balance costs to complete.

Due to the inherent nature of the projects and significant judgement involved in theestimate of costs to complete there is risk of overstatement or understatement ofrevenue hence this is considered as a key audit matter.

Auditor's Response

Our audit procedures on Revenue recognition included the following:

• Evaluation of Company's accounting policies for revenue recognition oncontractual projects are in line with the applicable accounting standards and theirapplication to customer contracts including consistent application;

• For samples selected during the year verifying the underlying documents –contracts with customers invoices raised and collections from the customers;

• Comparing the costs to complete workings with the budgeted costs and analysis ofthe variances if any;

• Sighting approvals for changes in budgeted costs with the rationale for thechanges; and

• Assessment of costs incurred on projects which is used by the company todetermine the percentage of completion.

B. Measurement of Revenue recorded from Sale of products – refer note 46(A)(e)

Revenue is recognised upon transfer of control of products manufactured by the companyto customers for an amount which reflects the consideration the company expects to receivein exchange for those products. The point of revenue recognition is normally upon transferof control to the customer on delivery of product.

Considering the competitive business environment there is a risk of revenue beingoverstated or understated in order to present consistent financial results. Since revenuerecognition has direct impact on the company's profitability there is a possibility ofthe company being biased hence this is considered as a key audit matter.

Auditor's Response

Our audit procedures on Revenue recognition included the following:

• Evaluation of company's accounting policies for revenue recognition on sale ofproducts manufactured are in line with the applicable accounting standards;

• Evaluation of the design and implementation and testing the operatingeffectiveness of key controls around approvals of sale order received invoice raisedintimation of delivery of product and controls over collection from customers;

• For samples selected verifying the underlying documents – Sale orderinvoice raised good received note authorised by the customer and the collections;and

• Cut-off procedures for recording of revenue in the relevant reporting period.

C. Assessment of Inventory valuation – refer note 46(C)

Inventories on construction of residential flats comprising ongoing and completedprojects initiated but unlaunched projects and land stock represents a significantportion of the company's total assets.A project comprises multiple units the constructionof which is carried out over a number of years. The recognition of profit for sale ofunits is therefore dependent on the estimate of future selling prices and constructioncosts.

Forecasts of future sales are dependent on market conditions which can be difficult topredict and be influenced by political and economic factors.

Considering the significance of the amount of carrying value of inventories and theinvolvement of significant estimation this considered as a key audit matter.

Auditor's Response

Our audit procedures to assess the Inventory valuation include the following:

• Enquiry with the company's personnel to understand the basis of computation andjustification for the estimated recoverable amount of the unsold flats;

• Assessing the company's valuation methodology for the key estimates data inputsand assumptions adopted in the valuation;

• While analyzing the expected average selling price we have performed asensitivity analysis on the selling price and compared this to the budgeted cost; and

• For our samples obtained the fair valuation reports for assessing the valuationmethodology key estimates and assumptions adopted in the valuation.

Information Other than the Financial Statements and Auditor's Report Thereon

The Company's Board of Directors is responsible for the other information. The otherinformation comprises the information included in the Management Discussion and AnalysisBoard's Report including Annexures to Board's Report Business Responsibility ReportCorporate Governance Report and Shareholder information but does not include thefinancial statements and our auditor's report thereon.

Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon. In connection with our audit of thefinancial statements our responsibility is to read the other information and in doingso consider whether the other information is materially inconsistent with the financialstatements or our knowledge obtained during the course of our audit or otherwise appearsto be materially misstated.

If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.

Managements Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance including othercomprehensive income changes in equity and cash flows of the company in accordance withthe Ind AS and other accounting principles generally accepted in India. 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 financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.

In preparing the financial statements management is responsible for assessing theCompany's ability to continue as going concern disclosing as applicable matters relatedto going concern and using the going concern basis of accounting unless management eitherintends to liquidate the Company or to cease operations or has no realistic alternativebut to do so. The Board of Directors are responsible for overseeing the Company'sfinancial reporting process.

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.

As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional scepticism through out the audit. We also:

• Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omission misrepresentations or the override of internal control.

• Obtain an understanding of internal financial controls relevant to the audit inorder to design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management's use of the going concern basisof accounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.

• Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.

Materiality is the magnitude of misstatements in the financial statements thatindividually or in aggregate makes it probable that the economic decisions of areasonably knowledgeable user of the financial statements may be influenced. We considerquantitative materiality and qualitative factors in (i) planning the scope of our auditwork and in evaluating the results of our work; and (ii) to evaluate the effect of anyidentified misstatements in the financial statements.

We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit. We alsoprovide those charged with governance with a statement that we have complied with relevantethical requirements regarding independence and to communicate with them allrelations2hips and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.

From the matters communicated with those charged with governance we determine thosematters that were of most significance in the audit of the financial statements of thecurrent period and are therefore the key audit matters. We describe these matters in ourauditor's report unless law or regulation precludes public disclosure about the matter orwhen in extremely rare circumstances we determine that a matter should not becommunicated in our report because the adverse consequences of doing so would reasonablybe expected to outweigh the public interest benefits of such communication.

Report on Other Legal and Regulatory Requirements:

1. As required by Section 143(3) of the Act based on our audit 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 including Other ComprehensiveIncome Statement of Changes in Equity and the Statement of Cash Flow dealt with by thisReport are in agreement with the relevant books of account.

d) In our opinion the aforesaid financial statements comply with the Ind AS specifiedunder Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014.

e) On the basis of written representations received from the directors as on March 312020 taken on record by the Board of Directors none of the directors is disqualified ason March 31 2020 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 A". Our report expresses an unmodified opinion onthe adequacy and Operating effectiveness of the Company's internal financial controls overfinancial reporting.

g) With respect to the other matters to be included in the Auditor's report inaccordance with the requirements of section 197(16) of the Act as amended: In our opinionand to the best of our information and according to the explanations given to us theremuneration paid by the Company to its directors during the year is in accordance withthe provisions of the section 197 of the Act.

h) 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 as amended inour opinion and to the best of our information and according to the explanations given tous:

i. The Company has disclosed the impact of pending Litigations on its financialposition in its financial statements –refer note 35 to the 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 includingderivative contracts.

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

2. As required by the Companies (Auditors Report) Order 2016 ("the Order")issued by the Central Government in terms of Section 143(11) of the Act we give in"Annexure-B" a statement on the matters specified in paragraphs 3 and 4 of theOrder.

For R V K S And Associates
Chartered Accountants
FRN: 008572S
R. MOHAN
Place : Bengaluru Partner
Date : 30 July 2020 M. No.: 203911

ANNEXURE "A" to the Independent Auditor's Report

(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatoryrequirements' of our report to the members of Alpine Housing Development CorporationLimited of even date) Report on the Internal Financial Controls over Financial Reportingunder Clause (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 AlpineHousing Development Corporation Limited ("the Company") as of March 31 2020 inconjunction with our audit of the financial statements of the Company for the year endedon that date.

Management's Responsibility for Internal Financial Controls

The Board of Directors of the company is responsible for establishing and maintaininginternal financial controls based on the internal control over financial reportingcriteria established by the company considering the essential components of internalcontrols stated in the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting issued by the Institute of Chartered Accountants of India ("theICAI"). These responsibilities include the design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theorderly and efficient conduct of its business including adherence to the respectivecompany'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 internal financial controls overfinancial reporting of the Company based on our audit. We conducted our audit inaccordance with the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting (the "Guidance Note") issued by the Institute of Chartered Accountantsof India and the Standards on Auditing prescribed under Section 143(10) of the CompaniesAct 2013 to the extent applicable to an audit of internal financial controls. ThoseStandards and the Guidance Note require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols 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 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 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.

Opinion

In our opinion and to the best of our information and according to the explanationsgiven to us the company has in all material respects an adequate internal financialcontrols system over financial reporting and such internal financial controls overfinancial reporting were operating effectively as at March 31 2020 based on the internalcontrol over financial reporting criteria established by the Company considering theessential components of internal control stated in the Guidance Note on Audit of InternalFinancial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.

For R V K S And Associates
Chartered Accountants
FRN: 008572S
R. MOHAN
Place : Bengaluru Partner
Date : 30 July 2020 M. No.: 203911

ANNEXURE "B" TO THE INDEPENDENT AUDITOR'S REPORT

(Referred to in paragraph 2 under ‘Report on Other Legal and RegulatoryRequirements' section of Our Report to the Members of Alpine Housing DevelopmentCorporation Limited of even date) (i) In respect of the Company's Fixed Assets:

(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 atreasonable intervals; no material discrepancies were noticed on such verification.

(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 except in respect of Fifty Two Residential apartmentswhich are developed by the Company of a value of Rs.639.32 Lakhs (PY Rs.639.32 Lakhs)where title deeds have not yet been executed and registered in favour of the Company.

(ii) As explained to us inventories have been physically verified during the year bythe management at reasonable intervals. Further in our opinion and based on theinformation and explanation given to us no material discrepancy was noticed on physicalverification of stocks by the management as compared to book records.

(iii) According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not granted any loans secured orunsecured to companies firms or other parties listed in the register maintained underSection 189 of the Companies Act 2013.

(iv) In our opinion and according to the information and explanations given to us theCompany has not given any loan investment guarantees or security as contemplated theprovisions of Sec.185 and 186 of the Act

(v) The company has not accepted deposits during the year and does not have anyunclaimed deposits as at March 31 2020 and therefore the provisions of the clause 3(v)of the Order are not applicable to the Company.

(vi) The maintenance of cost records has not been specified by the Central Governmentunder Section 148(1) of the Companies Act 2013 for the business activities carried out bythe company. Thus reporting under clause 3(vi) of the order is not applicable to thecompany.

(vii) (a) According to the information and explanation given to us and on the basis ofour examination of records of the company amounts deducted / accrued in the books ofaccount in respect of undisputed statutory dues including Provident Fund Employees StateInsurance Goods and Service Tax Income-tax Sales-tax Service Tax Custom Duty ExciseDuty Value Added Tax Cess and other material statutory dues to the extent applicablehave generally been regularly deposited with the appropriate authorities though delayshave been caused in certain cases.

According to the information and explanations given to us there were no outstandingstatutory dues as on March 31 2020 for a period of more than six months from the datethey became payable.

(b) According to the information and explanations given to us there is no materialdues payable in respect of Goods And Service Tax income tax service tax sales taxcustoms duty excise duty and Value Added Tax which have not been deposited on account ofany disputes.

(viii) Based on our audit procedures and on the information and explanations given bythe management we are of the opinion that the Company has not defaulted in repayment ofdues to a financial institution bank. The company has not issued any debentures.

(ix) The company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments) or term loans and hence reporting under clause 3 (ix)of the Order is not applicable to the Company.

(x) To the best of our knowledge and according to the information and explanationsgiven to us no fraud by the company or no material fraud on the company by its officersor employees has been noticed or reported during the year.

(xi) In our opinion and according to the information and explanations given to us theCompany has paid/provided for managerial remuneration in accordance with the requisiteapprovals mandated by the provisions of section 197 read with Schedule V to the Act

(xii) The Company is not a Nidhi Company and hence reporting under clause 3 (Xii) ofthe Order is Not applicable to the Company.

(xiii) In our opinion and according to the information and explanation given to us thecompany is in compliance with Section 177 and 188 of the Companies Act 2013 whereapplicable for all transactions with the related parties and details of related partytransactions have been disclosed in the financial statements as required by the applicableaccounting standards.

(xiv) During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause 3(xiv) of the Order is not applicable to the Company.

(xv) In our opinion and according to the information and explanation given to us theCompany has not entered into any non-cash transactions with its directors or personsconnected to its directors and hence provisions of Section 192 of the companies Act 2013are not applicable to the Company.

(xvi) The Company is Not required to be registered under section 45-IA of the RBI Act1934.

For R V K S And Associates
Chartered Accountants
FRN: 008572S
R. MOHAN
Place : Bengaluru Partner
Date : 30 July 2020 M. No.: 203911

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