TO THE MEMBERS OF M/s. B & B REALTY LTD
Report on the Financial Statements
We have audited the accompanying financial statements of M/s. B & B Realty Ltd ("theCompany")which comprise the Balance Sheet as at 31st March 2017 theStatement of Profit and Loss the Cash Flow Statement for the year then ended and asummary of the significant 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 generally accepted in India including the Accounting Standards specified underSection 133 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 of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments 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.
Our responsibility is to express an opinion on these financial statements based on ouraudit.
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 of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof 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 financial statements.
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 2017 and its profit/loss and its cash flows for the yearended on that date.
Emphasis of Matters
Member's reference is invited to para S note no. ( i ) relating to:
a) Company not obtaining confirmation of balances from sundry debtors/creditors..
b) Company not making necessary provisions towards bad and doubtful debts which areoutstanding more than six years.
However our opinion herein above though not modified is subject to aboveobservations..
Report on Other Legal and Regulatory Requirements
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 by this Report are in agreement with the books of account.
(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.
(e) The going concern matter described in sub-paragraph (b) under the Emphasis ofMatters paragraph above in our opinion may have an adverse effect on the functioning ofthe Company.
(f) On the basis of the written representations received from the directors as on 31stMarch 2017 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2017 from being appointed as a director in termsof Section 164 (2) of the Act.
(g) 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".
(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) Amendment Rules 2017 inour opinion and to the best of our information and according to the explanations given tous:
i. The Company does not have any pending litigations which would impact itsfinancial position
ii. The Company did not have any long-term contracts including derivative contractsfor which there were any material foreseeable losses]
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 statement as to itsholdings as well as dealing in specified bank notes during the period from 8-11-2016 to30-12-2016 and these are in accordance with the books of account maintained by thecompany.
| ||T.Srinivasa & Co |
| ||Chartered Accountants |
| ||FRN No.0166245 |
| ||(CA. T.Srinivasa) |
|Place: Bengaluru ||Partner |
|Date: 10-05-2017 ||M.NO.024213 |
Annexure to the Auditors' Report
The Annexure referred to in our report to the members of B & B Realty Ltd. for theyear Ended on 31.03.2017. I report that:
|Sl. No. ||Particulars ||Auditors Remark |
|1 ||(a) whether the company is maintaining proper records showing full particulars including quantitative details and situation of fixed assets; ||Yes |
| ||(b) whether these fixed assets have been physically verified by the management at reasonable intervals; whether any material discrepancies were noticed on such verification and if so whether the same have been properly dealt with in the books of account; ||N.A. |
|2 ||(c) Whether title deeds of immovable properties are held in the name of the company if not provide details thereof. whether physical verification of inventory has been conducted at reasonable intervals by the management and whether any material discrepancies were noticed and if so how they have been dealt with in the books of account ||Yes |
|3 ||(a) Whether the company has granted any loans secured or unsecured to companies firms Limited Liability partnerships of other parties covered in the register maintained under section 189 of the Companies Act 2013 if so. ||Yes |
| ||(b) whether the terms and conditions of the grant of such loans are not prejudicial to the company's interest: ||Yes |
| ||(c) Whether the schedule of repayment of principal and payment of interest has been stipulated and whether the repayments or receipts are regular. ||Yes |
| ||(d) If the amount is overdue state the total amount overdue for more than ninety days and whether reasonable steps have been taken by the company for recovery of the principal and interest. || |
|4 ||In respect of loans investments guarantees and security whether provisions of section 185 and 186 of the Companies Act 2013 have been complied with. If not provide details thereof. ||Yes |
|5 ||In case the company has accepted deposits whether the directives issued by the Reserve Bank of India and the provisions of sections 73 to 76 or any other relevant provisions of the Companies Act2013 and the rules framed there under where applicable have been complied with? If not the nature of such contraventions be stated; If an order has been passed by Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other tribunal whether the same has been complied with or not? ||Company has not accepted any deposit during the year. |
|6 ||Whether maintenance of cost records has been specified by the Central Government under sub-section (1) of section 148 of the Companies Act 2013 and whether such accounts and records have been so made and maintained. ||No |
|7 ||(a) Whether the company regular in depositing undisputed statutory dues including provident fund employees' state insurance income-tax sales-tax service tax duty of customs duty of excise value added tax cess and any other statutory dues with the appropriate authorities and if not the extent of the arrears of outstanding statutory dues as at the last day of the financial year concerned for a period of more than six months from the date they became payable shall be indicated by the auditor. ||Irregular in payment of TDS. Rs 270532/-outstanding. As on 31-3-2017.Out of this Rs.212388/- is more than six month |
| ||(b) Whether dues of income tax or sales tax or service tax or duty of customs or duty of excise or value added tax have not been deposited on account of any dispute then the amounts involved and the forum where dispute is pending shall be mentioned. ||No |
|8 ||Whether the company has defaulted in repayment of loans or borrowings to a financial institution bank government or dues to debenture folder? If yes the period and amount of default to be reported. (in case of defaults to banks financial institutions and government lender wise details to be provided) ||No |
|9 ||Whether moneys raised by way of public issue/follow on offer (including debt instruments) and tern=m loans were applied for the purposes for which those are raised. If not the details together with delays/default and subsequent rectification. If any as may be applicable be reported. ||Not applicable |
|10 ||Whether any fraud by the company or any fraud on the Company by its officers/employees has been noticed or reported during the year: if yes the nature and the amount involved be indicated. ||NO |
|11 ||Whether managerial remuneration has been paid/provided in accordance with the requisite approvals mandated by the provisions of section 197 read with schedule V to the Companies Act? It not state the amount involved and steps taken by the company for securing refund of the same. ||NO |
|12 ||Whether the Nidhi Company has complied with the Net Owned Fund in ;the ratio of 1:20 to meet out the liability and whether the Nidhi Company is maintaining 10% unencumbered term deposits as specified in the Nidhi Rules 2014 to meet out the liability. ||NA |
|13 ||Whether all transactions with the related parties are in compliance with Section 188 and 177 of Companies Act 2013 where applicable and the details have been disclosed in the Financial Statements etc as required by the accounting standards. ||YES |
|14 ||Whether the company has made any preferential allotment/private placement of shares or fully or partly convertible debentures during the year under review and if so as to whether the requirement of Section 42 of the Companies Act 2013 have been complied and the amount raised have been used for the purposes for which the funds were raised. If not provide details thereof. ||NO |
|15 ||Whether the company has entered into any non-cash transactions with directors or persons connected with him an if so. Whether provisions of Section 192 of Companies Act 2013 have been complied with. ||NO |
|16 ||Whether the company is required to be registered under section 45-IA of the Reserve Bank of India Act 1934 and if so. Whether the registration has been obtained. ||NO |
| ||T.Srinivasa & Co. |
| ||Chartered Accountants |
| ||FRN No.016624S |
| ||( T.Srinivasa) |
|Place: Bangalore. ||Partner |
|Date : 10.05.2017 ||M.No.024213 |