You are here » Home » Companies ยป Company Overview » Eldeco Housing & Industries Ltd

Eldeco Housing & Industries Ltd.

BSE: 523329 Sector: Infrastructure
NSE: ELDEHSG ISIN Code: INE668G01021
BSE 00:00 | 27 Jan 580.70 -3.30
(-0.57%)
OPEN

583.95

HIGH

584.20

LOW

570.95

NSE 00:00 | 27 Jan 573.35 -15.10
(-2.57%)
OPEN

583.10

HIGH

587.90

LOW

570.85

OPEN 583.95
PREVIOUS CLOSE 584.00
VOLUME 378
52-Week high 897.80
52-Week low 498.35
P/E 14.45
Mkt Cap.(Rs cr) 572
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 583.95
CLOSE 584.00
VOLUME 378
52-Week high 897.80
52-Week low 498.35
P/E 14.45
Mkt Cap.(Rs cr) 572
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Eldeco Housing & Industries Ltd. (ELDEHSG) - Auditors Report

Company auditors report

To the Members of Eldeco Housing and Industries Limited

Report on the Audit of the Standalone Financial Statements

OPINION

We have audited the accompanying Standalone Financial Statements of

Eldeco Housing and Industries Limited ("the Company")which comprise the Balance Sheet as at 31st March 2021 the Statement ofProfit and Loss (including other comprehensive income) the Statement of changes in Equityand the Statement of Cash Flows for the year then ended and Notes to Standalone FinancialStatements including a summary of the significant accounting policies and otherexplanatory information (hereinafter referred to as "the Standalone FinancialStatements").

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid Standalone Financial Statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under Section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended and accounting principles generally accepted in Indiaof the state of affairs of the Company as at 31st March 2021 the profit(including other comprehensive income) changes in equity and its cash flows for the yearthen ended.

Description of Key Audit Matters

BASIS FOR OPINION

We conducted our audit of the Standalone Financial Statements inaccordance with the Standards on Auditing (SAs) specified under Section 143(10) of theAct. Our responsibilities under those Standards are further described in theAuditor's Responsibilities for the Audit of the Standalone Financial Statementssection of our report. We are independent of the Company in accordance with the Code ofEthics issued by the Institute of Chartered Accountants of India (ICAI) together with theindependence requirements that are relevant to our audit of the Standalone FinancialStatements under the provisions of the Act and the Rules made thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theICAI's Code of Ethics. We believe that the audit evidence we have obtained issufficient and appropriate to provide a basis for our audit opinion on the StandaloneFinancial Statements.

KEY AUDIT MATTERS

Key Audit Matters ("KAM") are those matters that in ourprofessional judgment were of most significance in our audit of the Standalone FinancialStatements of the current period. These matters were addressed in the context of our auditof the Standalone Financial Statements as a whole and in forming our opinion thereon andwe do not provide a separate opinion on these matters. In addition to our emphasis ofmatters we have determined the matter described below to be the key audit matter to becommunicated in our report:

Key Audit Matters How the Key Audit Matter was addressed in our audit report
Revenue Recognition Our audit procedure on revenue recognition included following:
The Company's most significant revenue streams involve sale of residential and commercial units representing 95.38% of the total revenue from operations of the Company. Revenue is recognised post transfer of control of residential and commercial units to customers for the amount / consideration which the Company expects to receive in exchange for those units. The trigger for revenue recognition is normally completion of the project or receipt of approvals on completion from relevant authorities or intimation to the customer of completion post which the contract becomes non-cancellable. The Company records revenue over time till the actual possession to the customers or on actual possession to the customers as determined by the terms of contract with customers. • Evaluating the design and implementation and tested operating effectiveness of key internal controls over revenue recognition.
The risk for revenue being recognised in an incorrect period presents a key audit matter due to the financial significance and geographical spread of the Company's projects across different regions in India. • Evaluating the accounting policies adopted by the Company for revenue recognition to check those are in line with the applicable accounting standards and their consistent application to the significant sales contracts.
(Refer Note 24 to the Standalone Financial Statements) • Scrutinising the revenue journal entries raised throughout the reporting period and comparing details of a sample of these journals which met certain risk-based criteria with relevant underlying documentation.
• Testing timeliness of revenue recognition by comparing individual sample sales transactions to underlying contracts.
• Conducting site visits during the year for selected projects to understand the scope nature and progress of the projects.
• Considering the adequacy of the disclosures in the Standalone Financial Statements in respect of the judgments taken in recognising revenue for residential and commercial property units in accordance with IND AS 115.

INFORMATION OTHER THAN THE FINANCIAL STATEMENTS AND AUDITOR'SREPORT THEREON

The Company's Management and Board of Directors are responsiblefor the preparation of the other information. The other information comprises theinformation included in the Management Discussion and Analysis Report Board's Reportincluding Annexures to Board's Report Business Responsibility Report CorporateGovernance Report and Shareholder's Information but does not include the StandaloneFinancial Statements and our auditor's report there on.

Our opinion on the Standalone Financial Statements does not cover theother information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Standalone Financial Statementsour responsibility is to read the other information and in doing so consider whether theother information is materially inconsistent with the Standalone Financial Statement orour knowledge obtained during the course of our audit or otherwise appears to bematerially misstated.

If based on the work we have performed we conclude that there is amaterial misstatement of this other information; we are required to report that fact. Wehave nothing to report in this regard.

MANAGEMENT'S RESPONSIBILITY FOR THE STANDALONE FINANCIALSTATEMENTS

The Company's Management and Board of Directors are responsiblefor the matters stated in Section 134(5) of the Act with respect to the preparation ofthese Standalone Financial Statements that give a true and fair view of the financialposition financial performance total comprehensive income changes in equity and cashflows of the Company in accordance with the accounting principles generally accepted inIndia including the Indian Accounting Standards (IND AS) specified under Section 133 ofthe Act . 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 StandaloneFinancial Statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

In preparing the Standalone Financial Statements Management and Boardof Directors are responsible for assessing the Company's ability to continue as agoing concern disclosing as applicable matters related to going concern and using thegoing concern basis of accounting unless Board of Directors either intends to liquidatethe Company or to cease operations or has no realistic alternative but to do so.

The Board of Directors are responsible for overseeing theCompany's financial reporting process.

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIALSTATEMENTS

Our objectives are to obtain reasonable assurance about whether theStandalone Financial Statements as a whole are free from material misstatement whetherdue to fraud or error and to issue an auditor's report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an auditconducted in accordance with SAs will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material ifindividually or in the aggregate they could reasonably be expected to influence theeconomic decisions of users taken on the basis of these Standalone Financial Statements.

As part of an audit in accordance with SAs we exercise professionaljudgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of theStandalone Financial Statements whether due to fraud or error design and perform auditprocedures responsive to those risks and obtain audit evidence that is sufficient andappropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement resulting from fraud is higher than for one resulting from error as fraud mayinvolve collusion forgery intentional omissions misrepresentations or the override ofinternal control.

• Obtain an understanding of internal financial controls relevantto the audit in order to design audit procedures that are appropriate in thecircumstances. Under Section 143(3)(i) of the Act we are also responsible for expressingour opinion on whether the Company has adequate internal financial controls system inplace and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures in the Standalone FinancialStatements by Management and Board of Directors.

• Conclude on the appropriateness of Management's use of thegoing concern basis of accounting and based on the audit evidence obtained whether amaterial uncertainty exists related to events or conditions that may cast significantdoubt on the Company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists we are required to draw attention in our auditor'sreport to the related disclosures in the Standalone Financial Statements or if suchdisclosures are inadequate to modify our opinion. Our conclusions are based on the auditevidence obtained upto the date of our auditor's report. However future events orconditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation structure and content of theStandalone Financial Statements including the disclosures and whether the StandaloneFinancial Statements represent the underlying transactions and events in a manner thatachieves fair presentation.

Materiality is the magnitude of misstatements in the StandaloneFinancial Statements that individually or in aggregate makes it probable that theeconomic decisions so far reasonably knowledgeable user of the Standalone FinancialStatements may be influenced. We consider quantitative materiality and qualitative factorsin (i) planning the scope of our audit work and in evaluating the results of our work; and(ii) to evaluate the effect of any identified misstatements in the Standalone FinancialStatements.

We communicate with those charged with governance regarding amongother matters the planned scope and timing of the audit and significant audit findingsincluding any significant deficiencies in internal control that we identify during ouraudit.

We also provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence and tocommunicate with them all relationships and other matters that may reasonably be thoughtto bear on our independence and where applicable related safeguards.

From the matters communicated with those charged with governance wedetermine those matters that were of most significance in the audit of the StandaloneFinancial Statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditor's report unless law or regulation precludespublic disclosure about the matter or when in extremely rare circumstances we determinethat a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of suchcommunication.

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 in terms of Section 143(11) ofthe Act we give in "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order to the extent applicable.

2. As required by Section 143(3) of the Act we report that:

a) We have sought and obtained all the information and explanationswhich to the best of our knowledge and belief were necessary for the purposes of ouraudit.

b) In our opinion proper books of account as required by law have beenkept by the Company so far as it appears from our examination of those books.

c) The Balance Sheet the Statement of Profit and Loss (including OtherComprehensive Income) Statement of Changes in Equity and the Statement of Cash Flow dealtwith by this Report are in agreement with the relevant books of account.

d) In our opinion the aforesaid Standalone Financial Statements complywith the IND AS specified under Section 133 of the Act read with Rule 7 of the Companies(Accounts) Rules 2014.

e) On the basis of the written representations received from theDirectors as on 31st March 2021 taken on record by the Board of Directorsnone of the directors is disqualified as on March 312021 from being appointed as adirector in terms of Section164(2) of the Act.

f) With respect to the adequacy of the internal financial controls overfinancial reporting of the Company and the operating effectiveness of such controls referto our separate Report in "Annexure B". Our report expresses an unmodifiedopinion on the adequacy and operating effectiveness of the Company's internalfinancial controls over financial reporting.

g) With respect to the other matters to be included in theAuditor's Report in accordance with the requirements of Section 197(16) of the Actas amended:

In our opinion and to the best of our information and according to theexplanations given to us the remuneration paid by the Company to its Directors during theyear is in accordance with the provisions of Section 197 of the Act.

h) With respect to the other matters to be included in theAuditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors)Rules 2014 as amended in our opinion and to the best of our information and according tothe explanations given to us:

I. The Company has disclosed the impact of pending litigations on itsfinancial position in its Standalone Financial Statements – Refer Note 35 to theStandalone Financial Statements;

II. The Company has made provision as required under the applicablelaw or accounting standards for material foreseeable losses if any on long-termcontracts including derivative contracts.

III. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company.

For B S D & Co. Chartered Accountants
Firm's registration number: 000312S
Sujata Sharma Partner Membership number: 087919
UDIN: 21087919AAAADW7235
Place: New Delhi
Date: June 24 2021

Annexure - A to the Auditors' Report

(Referred to in paragraph 1 under "Report on other Legal andRegulatory Requirements" section of our report to the members of Eldeco Housing andIndustries Limited of even date)

(i) (a) The Company has maintained proper records showing particularsincluding quantitative details and situation of fixed assets.

(b) The Company has a regular programme of physical verification of itsfixed assets by which fixed assets are verified in a phased manner over a period of twoyears. In accordance with this programme certain fixed assets verified during the yearand no material discrepancies were noticed on such verification. In our opinion thisperiodicity of physical verification is reasonable having regard to the size of theCompany and nature of its assets.

(c) According to the information and explanations given to us and onthe basis of our examination of the records of the Company the title deed of immovableproperties are held in the name of the Company. In respect of immovable properties takenon lease and disclosed as right-of-use-assets in the Standalone Financial Statements thelease agreements are in the name of the Company.

(ii) The inventory includes land completed real estate projectsproject in progress and construction material. Physical verification of inventory has beenconducted at reasonable intervals by the Management and discrepancies noticed which werenot material in nature have been properly dealt with in the books of accounts.

(iii) The Company has granted unsecured loan to one Company covered inthe register maintained under Section 189 of the Companies Act 2013. full (a) The termsand conditions on which loans have been granted to the Companies covered in the registermaintained under Section 189 of the Act are not prima facie prejudicial to the interestof the Company.

(b) The Companies covered in the register maintained under Section 189of the Act are regular in payment of principal and interest as per the terms of theagreement.

(c) There are no overdue amounts in respect of loan granted to theCompanies covered in the register maintained under Section 189 of the Act.

(iv) In our opinion and according to the information and explanationsgiven to us the Company has complied with the provisions of Section 185 and 186 of theAct in respect of loans investments guarantees and security.

(v) The Company has not accepted any deposits from the public.Accordingly paragraph 3 (v) of the order is not applicable to the Company.

(vi) We have broadly reviewed the books of accounts maintained by the

Company pursuant to the Rules made by the Central Government for themaintenance of Cost Records under Section 148 of the Act and are of the opinion thatprima facie the prescribed accounts and records have been made and maintained howeverwe have not made a detailed examination of such cost records.

(vii) (a) According to the information & explanations given to usand on the basis of our examination of the records of the Company Company is generallyregular in depositing with the appropriate authorities undisputed statutory dues includingprovident fund employees' state insurance income tax duty of customs excisegoods & service tax (GST) and any other material statutory dues applicable to it andthere are no undisputed statutory dues outstanding as at 31st March 2021 for aperiod exceeding six months from the date they became payable.

(b) According to the information & explanations given to us thereare no dues of income tax duty of customs duty of excise goods & service tax (GST)or other applicable material statutory dues which have not been deposited on account ofany dispute except the following:

Name of the Statute Nature of the dues/Period to which it relates Amount (in Rs.) Forum where dispute is pending
VAT Act VAT/ F.Y. 2015-16 1938238 Joint/Additional Commissioner Lucknow
VAT Act VAT/ F.Y. 2016-17 955577 Joint/Additional Commissioner Lucknow

(viii) In our opinion and according to the information and explanationsgiven to us the Company has not defaulted in repayment of dues to banks and financialinstitutions. During the year Company has not issued any debentures. Further the Companyhas old outstanding of 46.07 lacs (shown in Note 18 of balance sheet) from CityCo-operative Bank Lucknow in overdraft account against FDR's of 106.29 lacs. Thesaid bank has discontinued its operations; however the Company has applied for repaymentof fixed deposits after adjustment of the balance outstanding in the overdraft account. Awrit petition is also pending in respect of the same in Hon'ble Allahabad High Court.

(ix) The Company did not raise any money by way of initial public offeror further public offer (including debt instruments) and term loans during the year.Accordingly paragraph 3(ix) of the Order is not applicable.

(x) According to the information and explanations given to us nomaterial fraud by the Company or on the Company by its officers or employees has beennoticed or reported during the course of our audit.

(xi) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has paid/provided formanagerial remuneration in accordance with the requisite approvals mandated by theprovisions of Section 197 read with Schedule V to the Act.

(xii) According to the information and explanation given to us theCompany is not Nidhi Company as prescribed under Section 406 of the Act. Accordinglyparagraph 3(xii) of the Order is not applicable to the Company.

(xiii)According to the information and explanations given to us alltransactions with the related parties are in compliance with Sections 177 and 188 of theAct where applicable and details of related party transaction have been disclosed in theStandalone Financial Statements as required by the applicable accounting standards.

(xiv)According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not made anypreferential allotment or private placement of shares or fully or partly convertibledebentures during the year. Accordingly paragraph 3(xv) of the Order is not applicable.

(xv) According to the information and explanations given to us andbased on our examination of the records of the Company the Company has not entered intonon-cash transactions with directors or persons connected with him. Accordingly paragraph3(xv) of the Order is not applicable.

(xvi)According to the information and explanations given to us theCompany is not required to be registered under Section 45-IA of the Reserve Bank of IndiaAct 1934.

For B S D & Co. Chartered Accountants
Firm's registration number: 000312S
Sujata Sharma
Partner Membership number: 087919
UDIN: 21087919AAAADW7235

Place: New Delhi

Date: June 24 2021

Annexure - B to Independent Auditors' Report

(Referred to the paragraph 2(f) under "Report on other Legal andRegulatory Requirements" section of our report to the Members of Eldeco Housing andIndustries Limited of even date)

Report on the Internal Financial Controls under Clause (i) ofSubsection 3 of Section 143 of the Companies Act 2013 ("the Act")

We have audited the internal financial controls over financialreporting of Eldeco Housing and Industries Limited ("the Company") as of31st March 2021 in conjunction with our audit of the Standalone FinancialStatements of the Company for the year ended on that date.

MANAGEMENT'S RESPONSIBILITY FOR INTERNAL FINANCIAL CONTROLS

The Company's Management is responsible for establishing andmaintaining internal financial controls based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting issued by ICAI. These responsibilities include the designimplementation and maintenance of adequate internal financial controls that were operatingeffectively for ensuring the orderly and efficient conduct of its business includingadherence to Company's policies the safeguarding of its assets the prevention anddetection of frauds and errors the accuracy and completeness of the accounting recordsand the timely preparation of reliable financial information as required under theCompanies Act 2013.

AUDITORS' RESPONSIBILITY

Our responsibility is to express an opinion on the Company'sinternal financial controls over financial reporting based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls overFinancial Reporting (the "Guidance Note") and the Standards on Auditing issuedby ICAI and deemed to be prescribed under Section 143(10) of the Act to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the ICAI. Those Standards and the GuidanceNote require that we comply with ethical requirements and plan and perform the audit toobtain reasonable assurance about whether adequate internal financial controls overfinancial reporting was established and maintained and if such controls operatedeffectively in all material respects.

Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls system over financial reporting and theiroperating effectiveness. Our audit of internal financial controls over financial reportingincluded obtaining an understanding of internal financial controls over financialreporting assessing the risk that a material weakness exists testing and evaluating thedesign and operating effectiveness of internal control based on the assessed risk. Theprocedures selected depend on the auditor's judgment including the assessment of therisks of material misstatement of the Standalone Financial Statements whether due tofraud or error.

We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our audit opinion on the Company's internalfinancial controls system over financial reporting of the Company.

MEANING OF INTERNAL FINANCIAL CONTROLS OVER FINANCIAL REPORTING

A Company's internal financial control over financial reporting isa process designed to provide reasonable assurance regarding the reliability of financialreporting and the preparation of Standalone Financial Statements for external purposes inaccordance with generally accepted accounting principles. A Company's internalfinancial control over financial reporting includes those policies and procedures that

(1) pertain to the maintenance of records that in reasonable detailaccurately and fairly reflect the transactions and dispositions of the assets of theCompany;

(2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of Standalone Financial Statements in accordance withgenerally accepted accounting principles and that receipts and expenditures of the Companyare being made only in accordance with authorisations of Management and Directors of theCompany; and

(3) provide reasonable assurance regarding prevention or timelydetection of unauthorised acquisition use or disposition of the Company's assetsthat could have a material effect on the Standalone Financial Statements.

INHERENT LIMITATIONS OF INTERNAL FINANCIAL CONTROLS OVER FINANCIALREPORTING

Because of the inherent limitations of internal financial controls overfinancial reporting including the possibility of collusion or improper Managementoverride of controls material misstatements due to error or fraud may occur and not bedetected. Also projections of any evaluation of the internal financial controls overfinancial reporting to future periods are subject to the risk that the internal financialcontrol over financial reporting may become inadequate because of changes in conditionsor that the degree of compliance with the policies or procedures may deteriorate.

OPINION

In our opinion to the best of our information and according to theexplanation given to us the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at 31st March 2021based on the internal control over financial reporting criteria established by the Companyconsidering the essential components of internal control stated in the Guidance Note onAudit of Internal Financial Controls Over Financial Reporting issued by the ICAI.

For B S D & Co. Chartered Accountants
Firm's registration number: 000312S
Sujata Sharma
Partner Membership number: 087919
UDIN: 21087919AAAADW7235
Place: New Delhi
Date: June 24 2021

.