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CHD Developers Ltd.

BSE: 526917 Sector: Infrastructure
NSE: N.A. ISIN Code: INE659B01021
BSE 00:00 | 16 Nov 8.81 0.04
(0.46%)
OPEN

8.99

HIGH

9.00

LOW

8.57

NSE 05:30 | 01 Jan CHD Developers Ltd
OPEN 8.99
PREVIOUS CLOSE 8.77
VOLUME 117761
52-Week high 20.10
52-Week low 7.20
P/E
Mkt Cap.(Rs cr) 113
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 8.99
CLOSE 8.77
VOLUME 117761
52-Week high 20.10
52-Week low 7.20
P/E
Mkt Cap.(Rs cr) 113
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

CHD Developers Ltd. (CHDDEVELOPERS) - Auditors Report

Company auditors report

TO

THE MEMBERS OF CHD DEVELOPERS LIMITED

REPORT ON THE STANDALONE IND AS FINANCIAL STATEMENTS

We have audited the accompanying Standalone Ind AS financial statements of CHDDEVELOPERS LIMITED ("the Company") which comprise the Balance Sheet as at March31 2018 the Statement of Profit and Loss including the Statement of Other Comprehensive

Income the Cash Flow Statement and the Statement of Changes in Equity for the yearthen ended and a summary of significant accounting policies and other explanatoryinformation (hereinafter referred to as "Standalone IND AS FinancialStatements").

MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE IND AS 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 standalone Ind AS financial statements that give a true and fair view of thefinancial position financial Performance including other Comprehensive income Cash

Flows and the Statement of changes in equity of the Company in accordance withaccounting principles generally accepted in India including the Indian AccountingStandards (Ind AS) specified under section 133 of the Act read with the Companies (IndianAccounting Standards) Rules2015 as amended from time to time.

This responsibility also includes maintenance of adequate accounting records inaccordance with the provisions of the Act for safeguarding the assets of the Company andfor preventing and detecting frauds and other irregularities; selection and application ofappropriate accounting policies; making judgments and estimates that are reasonable andprudent; and design implementation and maintenance of adequate internal financialcontrols that were operating effectively for ensuring the accuracy and completeness ofthe accounting records relevant to the preparation and presentation of the standalone IndAS financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

AUDITORS' RESPONSIBILITY

Our responsibility is to express an opinion on these Standalone Ind AS Financialstatements based on our audit. We have taken into account the provisions of the Act theaccounting and auditing standards and matters which are required to be included in theaudit report under the provisions of the Act and the Rules made there under.

We conducted our audit of the Standalone Ind AS Financial Statements in accordance withthe Standards on Auditing issued by the Institute of Chartered Accountants of India asspecified under Section 143(10) of the Act. Those Standards require that we comply withethical requirements and plan and perform the audit to obtain reasonable assurance aboutwhether the Standalone Ind AS Financial Statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the standalone Ind AS financial statements. The procedures selected dependon the auditor's judgment including the assessment of the risks of material misstatementof the standalone Ind AS financial statements whether due to fraud or error. In makingthose risk assessments the auditor considers internal financial control relevant to theCompany's preparation of the standalone Ind AS financial statements that give a true andfair view in order to design audit procedures that are appropriate in the circumstances.An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of the accounting estimates made by the Company's Directors as well asevaluating the overall 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 Ind AS financial statements.

OPINION

In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone Ind AS financial statements give the informationrequired by the Act in the manner so required and give a true and fair view in conformitywith the accounting principles generally accepted in India including Ind

AS specified under section 133 of the Act of the state of affairs (financial position)of the Company as at March 31 2018 its profit or loss including other comprehensiveincome its Cash Flows and the Statement of Changes in Equity for the year ended on thatdate.

OTHER MATTERS

The comparative financial information of the Company for the year ended March 31 2017and March 31 2016 was prepared in accordance with Accounting Standards prescribed undersection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014 (asamended) on which we issued auditor's reports to the shareholders of the Company dated May30 2017 and May 30 2016 respectively. These financial statements have been adjusted forthe differences in the accounting principles adopted by the Company on transition to IndAS which have been audited by us. Our opinion is not modified in respect of this matter.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

1. As required by the Companies (Auditor's Report) Order 2016("the Order")issued by the Central Government of India in terms of sub-section (11) of section 143 ofthe Act we give in the "Annexure 1" a statement on the matters specified inparagraphs 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 purpose 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 standalone Balance Sheet Statement of Profit and

Loss including Other Comprehensive Income the Cash Flow Statement and Statement ofChanges in Equity dealt with by this Report are in agreement with the books of accounts;d) In our opinion the aforesaid standalone Ind AS financial statements comply with theAccounting Standards specified under section 133 of the Act read with Companies (IndianAccounting Standards) Rules2015 as amended from time to time;

e) On the basis of the written representations received from the directors as on March31 2018 and taken on record by the Board of Directors none of the directors isdisqualified as on March 31 2018 from being appointed as a 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 2" to this report;

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 standalone Ind AS financial statements. Refer Note 35 to the standalone

Ind AS financial statements;

ii. The Company has made provision as required under the applicable law or IND AS formaterial foreseeable losses if any on long-term contracts including derivativecontracts. Refer Note no. 16 21 & 46 to the financial statements ;

iii. There has been no delay in transferring amounts required to be transferred tothe Investor Education and Protection Fund by the Company. Refer Note 45 to the standaloneInd AS financial statements;

For AMRG & Associates
Chartered Accountants
FRN: 004453N
CA Madhu Mohan
Place: New Delhi (Partner)
Date: May 30 2018 Membership No. 082938

ANNEXURE "1" TO THE INDEPENDENT AUDITORS' REPORT ON THE STANDALONE IND ASFINANCIAL STATEMENTS OF CHD DEVELOPERS LIMITED

Based on the audit procedures performed for the purpose of reporting a true and fairview on the Standalone IND AS Financial Statements of the Company and taking into theconsideration the information and explanations given to us and the books of accounts andother records examined by us in the normal course of audit and to the best of ourknowledge and belief we report that:

i. a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets comprising of property plant andequipment's and other intangible assets.

b) The Company has a regular programme for physical verification in a phased periodicmanner which in our opinion is reasonable having regards to the size of the Company andthe nature of its assets. No material discrepancies were noticed on such verification. Inour opinion this periodicity of physical verification is reasonable having regard to thesize of the Company and the nature of its assets.

c) According to information and explanations given by the management the titledeeds/lease deeds of immovable properties included in Property Plant and Equipment areheld in the name of the Company.

ii. The management has conducted physical verification inventory at reasonableintervals during the year except for inventory represented by development rights. Nomaterial discrepancies were noticed on such physical verification

iii. The Company has not granted any loan secured or unsecured to Body CorporatesFirms Limited Liability Partnerships(LLPs) or other parties covered in the registermaintained under section 189 of the Companies Act 2013 (‘the Act').

iv. In our opinion and according to the information and explanations provided to usCompany has not entered into any transaction covered under provisions of Section 185 and186 of the Companies Act 2013("The Act"). Accordingly the provisions of clause3(iv) of the Order are not applicable.

v. In our opinion and according to the information and explanations provided to usthe Company has complied with the provisions of Sections 73 to 76 or any other relevantprovisions of the Act and the Rules framed under Companies (Acceptance of Deposits) Rules2014 to the extent notified with regard to the deposits accepted from the public.

vi. We have broadly reviewed the books of account maintained by the Company pursuant tothe rules made by the Central Government for the maintenance of cost records under section148(1) of the Companies Act 2013 related to the Construction activities and are of theopinion that prima facie the specified accounts and records have been made andmaintained. We have not however made a detailed examination of the same.

vii. a) According to the information and explanations given to us and on the basis ofour search of the records of the Company amounts deducted/ accrued in the books ofaccount in respect of undisputed statutory dues including provident fund income-taxsales tax value added tax duty of customs service tax cess and other materialstatutory dues have been regularly deposited during the year by the Company with theappropriate authorities. As explained to us the Company did not have any disputed dues onaccount of employees' state insurance and duty of excise.

According to the information and explanations given to us no undisputed amountspayable in respect of provident fund income tax sales tax value added tax duty ofcustoms service tax cess and other material statutory dues were in arrears as at March31 2018 for a period of more than six months from the date they became payable.

b) According to the information and explanations given to us and the records of thecompany examined by us the disputed amount payable in respect of Income Tax Sales TaxWealth Tax Custom duty and excise duty/cess not deposited with the appropriateauthorities are as follow's:

Name of the Statute Nature of Dues Amount (In Lakhs) Period to which the amount relates Forum where dispute is pending
Income Tax Act 1961 Income Tax & Int. thereon 2704.17 FY 2012-13 CIT Appeal

viii. In our opinion and according to the information and explanations provided by themanagement the Company has not defaulted in the repayment of loans or borrowings tofinancial institutions banks or Government or dues to debenture holders during the year.

ix. The Company did not raise any money by way of initial public offer or furtherpublic offer (including debt instruments) and the company has raised the amount from termloans during the year and they were utilized for the purpose for which those are raised.

x. Based upon the audit procedures performed for the purpose of reporting the true andfair view of the Financial Statements and according to the information and explanationsprovided by the management we report that no fraud by the Company or no fraud on theCompany by the officers and employees of the

Company has been noticed or reported during the year.

xi. According to the information and explanations provided by the management themanagerial remuneration has been paid/ provided in accordance with the requisite approvalsmandated by the provisions of Section 197 read with Schedule V to the Companies Act 2013.

xii. In our opinion the Company is not a Nidhi Company. Therefore the provisions ofclause 3(xii) of the Order are not applicable to the Company and hence not commented upon.

xiii. According to the information and explanations provided by the management thetransactions with the related party are in compliance with Sections 177 and 188 of theCompanies Act 2013 where applicable and the details of related party transactions havebeen disclosed in the Standalone Ind AS financial statements as required by theapplicable accounting standards.

xiv. According to the information and explanations provided to us during the yearcompany has made preferential allotment of equity shares and share warrants convertibleinto equity shares & Company has complied with the provisions of Sections 42 & 62of Companies Act 2013 with regard to the preferential allotment.

xv. According to the information and explanations provided by the management theCompany has not entered into any non-cash transactions with directors or persons connectedwith him as referred to in section 192 of Companies Act 2013. Accordingly paragraph3(xv) of the order is not applicable.

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

For AMRG & Associates
Chartered Accountants
FRN: 004453N
CA Madhu Mohan
Place: New Delhi (Partner)
Date: May 30 2018 Membership No.082938

ANNEXURE "2" TO THE INDEPENDENT AUDITORS' REPORT ON THE STANDALONE IND ASFINANCIAL STATEMENTS OF CHD DEVELOPERS LIMITED

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 CHDDevelopers LIMITED ("the Company") as at March 31 2018 in conjunction with ouraudit of the standalone Ind AS financial statements of the Company for the year ended onthat date.

MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS

The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal financial reporting criteria established by theCompany controlover considering the essential components of internal control stated in theGuidance Note on Audit of Internal Financial Controls over Financial Reporting issued bythe Institute of Chartered Accountants of India. These responsibilities include thedesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to the Company's policies the safeguarding of its assets theprevention and detection of frauds and errors the accuracy and completeness of theaccounting records and the timely preparation of reliable financial information asrequired 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 FinancialReporting(the "Guidance Note")and the Standards on Auditing as specified underSection143(10) of the Companies Act 2013 to the extent applicable to an audit ofinternal financial controls and both issued by the

Institute of Chartered Accountants of India. Those Standards and the Guidance Noterequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether adequate internal financial controls over financialreporting was established and maintained and if such controls operated effectively in allmaterial 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 reporting an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists and testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgement including the assessment of therisks of material misstatement of the financial statements whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficientand appropriate toprovide a basis for our audit opinion on the internal financial controls system overfinancial 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 statements for external purposes in accordance with generally acceptedaccounting principles. A company's internal financial control over financialreportingincludes those policies and procedures that:

(1) Pertains to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions of the assets of the company;

(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and

(3) Provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition of the company's assets that could have amaterial 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 internalfinancial 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 to the best of our information and according to the explanations givento us the Company has in all material respects an adequate system over financialinternal financial reporting and such internal financial controls over financial reportingwere operating effectively as at 31st March 2018 based on the criteria established bythe internalcontroloverfinancial Company considering the essential components of internalcontrol stated in the Guidance Note on Audit of Internal Financial Controls Over FinancialReporting issued by the Institute of Chartered Accountants of India .

For AMRG & Associates
Chartered Accountants
FRN: 004453N
CA Madhu Mohan
Place: New Delhi (Partner)
Date: May 30 2018 Membership No. 082938