TO THE MEMBERS OF
BHANOT CONSTRUCTION & HOUSING LIMITED REPORT ON THE FINANCIAL STATEMENTS
We have audited the accompanying financial statements of Bhanot Construction &Housing Limited which comprise the Balance Sheet as at March 31 2014 the Statement ofProfit and Loss and 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 Management is responsible for the preparation of these financialstatements that give a true and fair view of the financial position financial performanceand cash flows of the Company in accordance with the Accounting Standards notified underthe Companies Act 1956 (the Act) read with the General Circular 15/2013 dated 13thSeptember. 2013 of the Ministry of Corporate Affairs in respect of Section 133 of theCompanies Act 2013 and in accordance with the accounting principles generally accepted inIndia. This responsibility indudes the design implementation and maintenance of internalcontrol relevant to the preparation and presentation of the finandal statements that givea true and fair view and are free from material misstatement whether (hie to fraud orerror. .
Our responsibility is to express an opinion on these finandal statements based on ouraudit We conducted our audit in accordance with the Standards on Auditing issued by theInstitute of Chartered Accountants of India. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the financial statements are free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statements. The procedures selected depend on the auditor'sjudgment inducing the assessment of the risks of material misstatement of the financialstatements whether due to fraud or error. In making those risk assessments the auditorconsiders internal control relevant to the Company's preparation and fair presentation ofthe financial statements in order to design audit procedures that are appropriate in thedrcumstances but not for the purpose of expressing an opinion on the effectiveness of theCompany's internal control. An audit also indudes evaluating the appropriateness ofaccounting polices used and the reasonableness of the accounting estimates made bymanagement as well as evaluating the overall presentation of the financial statements Webelieve that the audit evidence we have obtained is suffident and appropriate to provide abasis for our audit opinion.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid financial statements give the information required by the Actin the manner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India:
(a) In the case of the Balance Sheet of the state of affairs of the Company as atMarch 312014;
(b) In the case of the Statement of Profit and Loss of the loss of the Company for theyear ended on that date;
(c) In the case of the Cash Flow Statement of the 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 2003 (the Order) issued bythe Central Government of India in terms of Section 227(4A) of the Act we give in theAnnexure a statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by Section 227(3) of the Act we report that:
a. We have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose 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 and the Cash Flow Statementdealt with by this Report are in agreement with the books of account.
d. In our opinion the Balance Sheet the Statement of Profit and Loss and Cash FlowStatement comply with Accounting Standards notified under the Act read with the GeneralCircular 15/2013 dated 13th September 2013 of the Ministry of Corporate Affairs inrespect of Section 133 of the Companies Act; 2013.
e. On the basis of the written representations received from the directors as on March31 2014 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2014 from being appointed as a director in terms of Section 274(lXg) ofthe Act.
| ||For Dhamija Sukhija & Co. |
| ||Chartered Accountants |
| ||(FRN: 000369N) |
|New Delhi ||Sd/- |
|Date :30/05/2014 ||Prabhat Sukhija |
| ||Membership No.:514761 |
Annexure to Auditor's Report
RE: Bhanott Construction & Housing Ltd.
Referred to in paragraph 3 of our report of even date to the members on the accountsfor the year ended 31st March 2014
1) a) The Company is maintaining proper records showing full particulars includingquantitative details and situation of fixed assets. . .
b) The fixed assets have been physically verified by the management at reasonableintervals in our opinion is reasonable having regard to the size of the company and thenature of its assets. No material discrepancies were noticed on such verification.
c) During the year the Company has converted a part of land at dehradun (0.285 bighaout of 3 bigha) into Stock-In-Trade for Rs.19.985 lacs (Book Value Rs.10.756 lacs) and hasalso sold a land (i.e. 2.715 bigha) for Rs.l04.51lacs (Book Value RS.102.21 lacs) butthe going concern status is not affected.
2) a) The inventory has been physically verified during the year by the management Inour opinion the frequency of verification is reasonable.
b) The procedures of physical verification of inventories followed by the managementare reasonable and adequate in relation to the size and the nature of its business.
c) The company is maintaining proper books of inventory. As explained to us nodiscrepancies were noticed during verification between the physical stocks as compared tobooks of records.
3 a)The company has not granted any loans secured and unsecured to companies firmsor other partners . covered in the register maintained under section 301 of the CompaniesAct 1956. .
b) The company has an unsecured loan from M/s Indica Credits Private Limited amountingRs. 33.24 lacs (Pertaining to FY 2010-11) covered in the register maintained under section301 of the Companies Act 1956.
4) In our opinion and according to the information and explanations given to us theCompany has no adequate internal control procedure commensurate with the size of thecompany and the nature of its business for purchase of inventories raw materialsequipment and other assets and for sale of goods and services. During the course of ouraudit we have not observed any continuing failure to correct major weaknesses in internalcontrols system of the company.
5) a)Based on the audit procedures applied by us and according to the information andexplanation provided by the management there are no particulars of contracts Orarrangements referred to in section 301 Of the Act which are to be entered in the registerrequired to be maintained under that section.
b) As per information & explanations given to us and in our opinion thetransaction entered into by the company with parties covered u/s 301 of the Act does notexceeds five lacs rupees in a financial year therefore requirement of reasonableness oftransactions does not arises.
6) According to the information and explanations given to us the company has accepteddeposits (outstanding amount Rs.64.89 lacs) covered under the provisions of sections 58Aand 58AA of the Companies Act 1956 and the Companies (Acceptance of Deposits) Rules 1975with regard to the deposits accepted from the public
7) In our opinion the company has no internal audit system commensurate with the sizeand nature of its business.
8) The central government has prescribed the maintenance of cost records by the companyunder clause (d) of sub-section (1) of section 209 of the Act. The company is not requiredto maintain such records.
9) a) The company is irregular in depositing with appropriate authorities undisputedstatutory dues applicable to it such as service tax Tax Deducted Source & Luxury Tax
b) According to the information and explanations given to us undisputed amountspayable in respect of . Luxury tax (Rs.7.66 lacs) service tax (Rs. 5.26 lacs) and TaxDeducted at source for the F.Y 2013-14 is payable for Rs.4.09 lacs as On 31/03/2014.
c) According to the information and explanation given to us there are dues of incometax amounting to Rs. 7.20 Crones relating to A.Y.2011-12 which have not been deposited onaccount of any dispute.
10) In Our opinion the accumulated loses of the company are not more than fifty percent of its net worth. Further the company has incurred cash losses of Rs.177.87 lacsduring the financial year covered by our audit and there was no cash loss in theimmediately preceding financial year.
11) In our opinion and according to the information and explanations given to us thecompany has defaulted in repayment of dues to financial institution/bank amounting to
|Bank ||Amount Unpaid (Rs. In lacs) ||Due For The Month |
|Loan From ICICI Bank (4345) ||11.05 ||March -14 |
|Loan From ICId Bank (4342) ||10.72 ||February - 14 & March - 14 |
|Loan From ICICI Bank (4343) ||5.02 ||March -14 |
|HDFC Loan ||12.02 ||March -14 |
|HDFC (Home Equity) ||15.06 ||February - 14 & March -14 |
|TATA Capital (Skoda) ||7.26 ||March -14 |
|S. E. Investment Limited ||68.06 ||February - 14 (Had To Be Closed On) |
|Total ||129.19 || |
12) In Our opinion and according the information and explanations given to us no loansand advances have been granted by the company on the basis of security by way of pledge ofshares debentures and other securities;.
13) The company is not a chit fund or a nidhi/mutual benefit fund/ sodety.
14) The company is riot dealing/ trading in shares securities and other investments.However it has maintained proper record in respect of shares held as longterm investmentand is held in the name of the company.
15) According to the information and explanation given to us the company has not givenany guarantee during the period for loans taken by others banks or financial institutions.
16) On the basis of information & explanation given to us the company has notobtained any term loan during the period.
17) According to the information and explanations given to us and on an overallexamination of the balance sheet of the company we report that no funds raised onshort-term basis have been used for long-term investments and vice versa.
18) According to the information and explanations given to us the company has not madepreferential allotment of shares to parties and companies covered in the registermaintained under section 301 of the Companies Act 1956 during the year.
19) According to the information and explanations given to us the company had notissued any debentures during the period.
20) As per information and explanations given to us the company has not raised moneyby public issue during the year. .
21) According to the information and explanations given to-us no fraud on or by thecompany has been noticed or reported during the course of our audit
|Place: New Delhi ||For Dhamija Sukhija & Co. |
|Date: 30/05/2014 ||Chartered Accountants |
| ||FRN: 000369N |
| ||Sd/- |
| ||(PRABHAT SUKHLJA) |
| ||Partner |
| ||M.No.514761 |