To the Members of Dugar Housing Developments Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Dugar Housing DevelopmentsLimited ("the Company") which comprise the Balance Sheet as at 31st March2015 the Statement of Profit and Loss for the year and Cash Flow Statement for the yearending 31st March 2015 and a summary of significant accounting policies and otherexplanatory 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 preparation andpresentation of these financial statements that give a true and fair view of the financialposition financial performance and cash flows of the Company in accordance with theaccounting principles 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 accuracy and completeness of accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
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 Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified u/s143(10) of the Act. Those Standards require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether the financialstatements 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 including 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 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 but not for the purpose of expressing an opinionon whether the Company has in place an adequate internal financial controls system overthe financial reporting and the operating effectiveness of such controls. An audit alsoincludes evaluating the appropriateness of accounting policies used and the reasonablenessof the accounting estimates made by Management as well as evaluating the overallpresentation 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 financial statements.
Basis for Qualified Opinion:
The Company is not providing for liability for gratuity as per actuarial valuationwhich is not in accordance of the Accounting Standard on Provision for Gratuity (AS-15)(Refer Note 2(I) in Notes forming part of Financial Statements) issued by The Institute ofChartered Accountants of India and the impact of which is unascertainable.
Emphasis of Matter:
The Company has revised its Policy of providing Depreciation in accordance with theCompanies Act 2013 and the resulting impact has been explained vide Explanation to Note2(C) to the Annual Report.
In our opinion and to the best of our information and according to the explanationsgiven to us except for the effects of the matter described in the Basis for Qualifiedopinion paragraph the accompanying financial statements give the information required bythe 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 31 March 2015 and its Profits 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 2015 (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 a statement on the matters specified in paragraphs 3 and4 of the Order to the extent applicable
2. As required by section 143(3) of the Act we report to the extent applicable that:
a. we have sought and obtained all the information and explanations which to the bestof our knowledge 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 it appears from our examination of those books;
c. the Balance Sheet Statement of Profit and Loss and the Cash Flow statement dealtwith by this Report are in agreement with the books of account;
d. in our opinion except for the effects of the matter described in the Basis forQualified opinion paragraph the aforesaid financial statements comply with the AccountingStandards specified under section 133 of the Act;
e. On the basis of written representations received from the directors as on 31st March2015 taken on record by the Board of Directors none of the directors is disqualified ason 31st March 2015 from being appointed as a director in terms of sub-section (2) ofsection 164 of the Act.
f. 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. According to the information and explanations given to us there were no pendinglitigations which would impact the financial position of the Company. ii. The Company didnot have any material foreseeable losses on long-term contracts including derivativecontracts. iii. There were no amounts required to be transferred to the Investor Educationand Protection Fund by the Company.
| ||For M.Krishnakumar & Associates |
| ||Chartered Accountants |
| ||FRN.006853S |
| ||M.Krishna Kumar B.Sc FCA |
|Place : Chennai ||Proprietor |
|Date : 30.05.2015 ||M.No.203929 |
Annexure to the Independent Auditors' Report:
The Annexure referred to in our Independent Auditors' Report to the members of theCompany on the financial statements for the year ended 31st March 2015 we report that:
1. a) The Company has maintained proper records showing full particulars includingquantitative details and situations of fixed assets
b) All the assets have not been physically verified by the management during the yearbut there is a regular programme of verification which in our opinion is reasonablehaving regard to the size of the company and the nature of its assets. No materialdiscrepancies were noticed on such verification.
c) During the year the Company has not disposed off a substantial part of fixed assetsthat would affect it as a going concern.
2. a) The inventory has been physically verified during the year by the Management. Inour opinion the frequency of verification is reasonable.
b) The procedure of physical verification of inventories followed by the Management isreasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
c) The Company is maintaining proper records of inventory. The discrepancies noticed onverification between the physical stocks and the book records were not material.
3. (i) The Company has not granted any loans secured or unsecured to companies firmsor other parties covered in the register maintained under section 189 of the CompaniesAct 2013.
(ii) According to the information and explanations given to us and on the basis of ourexamination of the books of account the Company has not taken any loans from companiesfirms or other parties listed in the register maintained under Section 189 of theCompanies Act 2013. s
4. In our opinion and according to the information and explanations given to us thereis an adequate internal control system commensurate with the size of the Company andnature of its business with regard to purchase of inventory fixed assets and with regardto the sale of goods and services wherever applicable. We have not observed any majorweakness in internal control system during the course of the audit.
5. The Company has not accepted any deposits from public.
6. We have reviewed the rules prescribed by the Central Government for maintenance ofCost records under Section 148 (1) of the Companies Act 2013 and according to theinformation and explanations given to us we are of the opinion that prima facie the saidrecords are not applicable for the financial year under review.
7. a) The Company is regular in depositing with appropriate authorities undisputedstatutory dues including provident fund employees' state insurance income-taxsales-tax wealth tax custom duty excise duty VAT cess and other statutory duesapplicable to it with appropriate authorities and that there are no outstanding dues as onthe last day of the financial year for a period of more than six months from the date theybecame payable. b) According to the information and explanations given to us noundisputed amounts payable in respect of income tax wealth tax sales tax service taxcustoms duty excise duty VAT and cess were in arrears as at 31st March 2015. Howeverthe following disputed amounts of Income tax are presently under Appeal with variousAppellate Authorities as on 31st March 2015.
|S.No. ||Particulars ||Amount Rs. ||Details |
|1. ||A.Y.1996-97 ||1911719 ||Under Appeal with the Hon'ble High Court Chennai |
|2. ||A.Y.1997-98 ||3389888 ||Under Appeal with the Hon'ble High Court Chennai |
|3. ||A.Y.1999.00 ||3162625 ||Under Appeal with the Hon'ble Income Tax Appellate Tribunal Chennai |
c) According to the information and explanations given to us there are no amountsrequired to be transferred to investor education and protection fund in accordance withthe relevant provisions of the Act.
8. The Company has not incurred accumulated losses at the end of financial yearincluding cash losses and also in the immediately preceding financial year.
9. The Company has no outstanding dues to Banks or financial Institutions.
10.According to the information and explanations given to us the Company has not givenany Corporate guarantee for loans taken by Group Company from banks or financialinstitutions.
11. According to the information and explanation given to us the Company has no termloans outstanding during the year with Banks.
12.According to the information and explanations given to us no material fraud on orby the Company has been noticed or reported during the course of our audit.
| ||For M.Krishnakumar & Associates |
| ||Chartered Accountants |
| ||FRN.006853S |
|Place : Chennai ||M.Krishna Kumar B.Sc FCA |
|Date : 30.05.2015 ||Proprietor |
| ||M.No.203929 |