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Parsvnath Developers Ltd.

BSE: 532780 Sector: Infrastructure
NSE: PARSVNATH ISIN Code: INE561H01026
BSE 00:00 | 20 Jul 10.40 -0.08
(-0.76%)
OPEN

10.40

HIGH

10.65

LOW

10.11

NSE 00:00 | 20 Jul 10.45 0
(0.00%)
OPEN

10.45

HIGH

10.65

LOW

10.15

OPEN 10.40
PREVIOUS CLOSE 10.48
VOLUME 10765
52-Week high 33.90
52-Week low 10.11
P/E
Mkt Cap.(Rs cr) 453
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 10.40
CLOSE 10.48
VOLUME 10765
52-Week high 33.90
52-Week low 10.11
P/E
Mkt Cap.(Rs cr) 453
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Parsvnath Developers Ltd. (PARSVNATH) - Auditors Report

Company auditors report

To The Members of

Parsvnath Developers Limited

Report on the Ind AS Financial Statements

We have audited the accompanying Indian Accounting Standards (Ind AS)financial statements of Parsvnath Developers Limited (“the Company”) whichcomprise the Balance Sheet as at 31 March 2017 and the Statement of Profit and Loss(including Other Comprehensive Income) the Statement of Cash Flows and the Statement ofChanges in Equity for the year then ended and a summary of the significant accountingpolicies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors is responsible for the mattersstated in Section 134(5) of the Companies Act 2013 (“the Act”) with respect tothe preparation of these Ind AS financial statements that give a true and fair view of thefinancial position financial performance including other comprehensive income cash flowsand changes in equity of the Company in accordance with the accounting principlesgenerally accepted in India including the Ind AS prescribed under section 133 of the Act.This responsibility also includes maintenance of adequate accounting records in accordancewith the provisions of the Act for safeguarding the assets of the Company and forpreventing 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 Ind ASfinancial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these Ind AS financialstatements based on our audit.

We have taken into account the provisions of the Act the accountingand auditing standards and matters which are required to be included in the audit reportunder the provisions of the Act and the Rules made thereunder.

We conducted our audit of the Ind AS financial statements in accordancewith the Standards on Auditing specified under Section 143(10) of the Act. Those Standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance about whether the Ind AS financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence aboutthe amounts and the disclosures in the Ind AS financial statements. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the Ind AS financial statements whether due to fraud or error.In making those risk assessments the auditor considers internal financial controlrelevant to the Company's preparation of the Ind AS financial statements that give atrue and fair view in order to design audit procedures that are appropriate in thecircumstances. An audit also includes evaluating the appropriateness of the accountingpolicies used and the reasonableness of the accounting estimates made by theCompany's Directors as well as evaluating the overall presentation of the Ind ASfinancial statements.

We believe that the audit evidence obtained by us is sufficient andappropriate to provide a basis for our audit opinion on the Ind AS financial statements.

Opinion

In our opinion and to the best of our information and according to theexplanations given to us the aforesaid 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 the Ind AS of thestate of aflairs of the Company as at 31 March 2017 and its loss ( including othercomprehensive income) its cash flows and the changes in equity for the year ended on thatdate.

Other Matter

The comparative financial information of the Company for the year ended31 March 2016 and the transition date opening balance sheet as at 1 April 2015 included inthese Ind AS financial statements are based on the previously issued statutory financialstatements prepared in accordance with the Companies (Accounting Standards) Rules 2006audited by the predecessor auditor whose report for the year ended 31 March 2016 and 31March 2015 dated 24 May 2016 and 25 May 2015 respectively expressed an unmodified opinionon those financial statements as adjusted for the Differences in the accountingprinciples adopted by the Company on transition to the Ind AS which have been audited byus.

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 (“theOrder”) issued by the Central Government in terms of Section 143(11) of the Act wegive in “Annexure A” a statement on the matters specified in paragraphs 3 and 4of the Order.

2. As required by Section 143(3) of the Act based on our audit we report to theextent 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 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 Ind AS Financial Statements dealt with by this Report are in agreement with thebooks of account.

d) In our opinion the Ind AS financial statements comply with the Indian AccountingStandards prescribed under section 133 of the Act.

e) On the basis of the written representations received from the directors as on March31 2017 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2017 from being appointed as a director in terms of Section 164(2) of theAct.

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 B”.

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 (as amended) inour opinion and to the best of our information and according to the explanations given tous:

i) The Company has disclosed the impact of pending litigations on its financialposition in its Ind AS financial statements – Refer Note 35 to the Ind AS financialstatements;

ii) The Company did not have any long term contracts including derivative contracts forwhich there were any material foreseeable losses – Refer Note 37 to the Ind ASfinancial statements;

iii) There were no amounts which were required to be transferred to theInvestor Education and Protection Fund by the Company; iv) The Company has providedrequisite disclosures in the financial statements as to holdings as well as dealings inSpecified Bank Notes during the period from 8 November 2016 to 30 December 2016. Based onaudit procedures and relying on the management representation we report that thedisclosures are in accordance with books of account maintained by the Company and asproduced to us by the Management – Refer Note 15 to the Ind AS financial statement.

ForS.N. Dhawan & Co LLP
( Formerly S. N. Dhawan & Co. )
Chartered Accountants
Firm's Registration No.:000050N/N500045
Sd/-
Vinesh Jain
Place: New Delhi Partner
Date: 29 May 2017 Membership No.: 087701

‘Annexure A' to the Independent Auditor's Report

(Referred to in paragraph 1 under ‘Report on Other Legal andRegulatory Requirements' section of the Independent Auditor's Report of evendate to the members of Parsvnath Developers Limited on the Ind AS financial statements asat and for the year ended 31 March 2017)

i. a. The Company has maintained proper records showing fullparticulars including quantitative details and situation of fixed assets.

b. The fixed assets were physically verified during the year by theManagement in accordance with a regular programme of verification which in our opinionprovides for physical verification of all the fixed assets at reasonable intervals.According to information and explanations given to us no material discrepancies werenoticed on such verification.

c. According to the information and explanations given to us and therecords examined by us and based on the examination of the registered sale deed / transferdeed / conveyance deed provided to us we report that the title deeds comprising all theimmovable properties of land and buildings which are freehold are held in the name of theCompany as at the balance sheet date. In respect of immovable properties of land andbuildings that have been taken on lease and disclosed as fixed asset in the financialstatements the lease agreements are in the name of the Company where the Company is thelessee in the agreement.

ii. In our opinion and according to the information andexplanations given to us having regard to the nature of inventory the physicalverification by way of verification of title deeds site visits by the Management andcertification of extent of work completion by competent persons are at reasonableintervals and no material discrepancies were noticed on physical verification.

iii. According to the information and explanations given to us the Company has grantedloans secured or unsecured to companies covered in the register maintained under section189 of the Companies Act 2013 in respect of which:

a. The terms and conditions of the grant of such loans are in our opinion primafacie not prejudicial to the Company's interest.

b. The schedule of repayment of principal and payment of interest has not beenstipulated and in the absence of such schedule we are unable to comment on the regularityof the repayments or receipts of principal amounts and interest.

c. There is no overdue amount remaining outstanding as at the balance sheet date.

iv. In our opinion and according to the information and explanations given to us theCompany has complied with the provisions of Sections 185 and 186 of the Companies Act2013 in respect of grant of loans making investments and providing guarantees andsecurities.

v. According to the information and explanations given to us the Company has notaccepted any deposits from the public.

vi. The maintenance of cost records has been specified by the CentralGovernment under section 148(1) of the Companies Act 2013. We have broadly reviewed thecost records maintained by the Company pursuant to the Companies (Cost Records and Audit)Rules 2014 as amended and prescribed by the Central Government under Section 148 (1) ofthe Companies Act 2013 and are of the opinion that prima facie the prescribedcost records have been made and maintained. We have however not made a detailedexamination of the cost records with a view to determine whether they are accurate orcomplete.

vii. According to the information and explanations given to us inrespect of statutory dues:

a. There have been significant delays in deposit of undisputedstatutory dues in respect of Tax deducted at Source and delays in deposit of ProvidentFund Employees' State Insurance Income-tax Sales Tax Service Tax Value AddedTax Cess and other material statutory dues applicable to it to the appropriateauthorities.

We are informed that the Company's operations during the year didnot give rise to any liability for Customs Duty and Excise Duty.

b. There are no undisputed amounts payable in respect of Sales TaxService Tax Value Added Tax Cess and other material statutory dues in arrears as atMarch 31 2017 for a period of more than six months from the date they became payableother than for Tax deducted at source as given below:

Nature of dues Amount Period of
(Rs. in Lakhs) default
Tax deducted at source 2402.00 2015-16 and 2016-17

We are informed that the Company's operations during the year didnot give rise to any liability for Customs Duty and Excise Duty.

Details of dues of Income-tax Sales Tax and Value Added Tax which havenot been deposited as on March 31 2017 on account of disputes are given below:

Name of statute Nature of dues Forum where the dispute is pending Period to which the amount relates Amount involved (Rs. in lakhs)
Bihar Value Added Tax Act 2005 Value Added Tax Joint Commissioner (Appeals) 2010-2011 217.48
Haryana Value Added Tax Act 2003 Value Added Tax Member Tribunal Haryana 2006-2007 and 2008- 09 173.26
Haryana Value Added Tax Act 2003 Value Added Tax Joint Excise and Taxation Commissioner (Appeals) Faridabad 2011-2012 to 2013- 2014 343.35
Income Tax Act 1961 Income Tax Commissioner of Income Tax (Appeals) 2005-06 to 2011-12 1041.42
UP Trade Tax Trade Tax Additional Commissioner (Appeal) 2000-01 to 2013-14 885.08*
Mumbai VAT VAT 2008-09 43.07
Enter- tainment Tax Tax JT Commissioner (Appeals) 1999-2003 9.07

Note: *Net of Rs. 352.93 lakhs paid under protest.

There are no dues in respect of Service Tax which have not beendeposited as on March 31 2017 on account of any disputes. We are informed that theCompany's operations during the year did not give rise to any Customs Duty andExcise Duty.

viii. In our opinion and according to the information and explanationsgiven to us the Company has not defaulted in repayment of loans or borrowings tofinancial institutions banks and government and dues to debenture holders except asbelow:

Particulars

Amount of default of repayment (Rs. in lakhs)

Period of default
Principal Interest
Dues to financial institutions: LIC of India 11448.56 2644.20 1 to 1186 days

ix. The Company has not raised moneys by way of initial public offer or further publicoffer (including debt instruments). In our opinion and according to the information andexplanations given to us the term loans have been applied by the Company during the yearfor the purpose for which they were raised other than temporary deployment pendingapplication.

x. To the best of our knowledge and according to the information and explanations givento us no fraud by the Company and no material fraud on the Company by its Officers oremployees has been noticed or reported during the year.

xi. The Company has not paid any managerial remuneration during the year.

xii. The Company is not a Nidhi Company and hence reporting under clause (xii) of theCARO 2016 is not applicable.

xiii. In our opinion and according to the information and explanations given to us theCompany is in compliance with Section 188 and 177 of the Companies Act 2013 whereapplicable for all transactions with the related parties and the details of related partytransactions have been disclosed in the financial statements etc. as required by theapplicable accounting standards.

xiv. During the year the Company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures and hence reporting underclause (xiv) of the CARO 2016 is not applicable to the Company.

xv. In our opinion and according to the information and explanations given to usduring the year the Company has not entered into any non-cash transactions with itsdirectors or directors of its subsidiary or associate company or persons connected withthem and hence provisions of section 192 of the Companies Act 2013 are not applicable.

xvi. The Company is not required to be registered under section 45-I of the ReserveBank of India Act 1934.

ForS.N. Dhawan & Co LLP
( Formerly S. N. Dhawan & Co. )
Chartered Accountants
Firm's Registration No.:000050N/N500045
Sd/-
Vinesh Jain
Place: New Delhi Partner
Date: 29 May 2017 Membership No.: 087701