To the Members of Peninsula Land Limited
Report on the Audit of the Standalone Ind AS Financial Statements
We have audited the accompanying standalone Ind AS financial statementsof Peninsula Land Limited ("the Company") which comprise the Balance Sheet asat March 31 2022 the Statement of Profit and Loss including the statement of OtherComprehensive Income the Cash Flow Statement and the Statement of Changes in Equity forthe year then ended and notes to the financial statements including a summary ofsignificant accounting policies and other explanatory information.
In our opinion and to the best of our information and according to theexplanations given to us the aforesaid standalone Ind AS financial statements give theinformation required by the Companies Act 2013 as amended ("the Act") in themanner so required and give a true and fair view in conformity with the accountingprinciples generally accepted in India of the state of affairs of the Company as at March31 2022 its loss including other comprehensive income its cash flows and the changes inequity for the year ended on that date.
BASIS FOR OPINION
We conducted our audit of the standalone Ind AS financial statements inaccordance with the Standards on Auditing (SAs) as specified under section 143(10) of theAct. Our responsibilities under those Standards are further described in the 'Auditor'sResponsibilities for the Audit of the Standalone Ind AS Financial Statements' section ofour report. We are independent of the Company in accordance with the 'Code of Ethics'issued by the Institute of Chartered Accountants of India together with the ethicalrequirements that are relevant to our audit of the financial statements under theprovisions of the Act and the Rules thereunder and we have fulfilled our other ethicalresponsibilities in accordance with these requirements and the Code of Ethics. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our audit opinion on the standalone Ind AS financial statements.
MATERIAL UNCERTAINTY RELATED TO GOING CONCERN
We draw attention to Note 53 in the standalone Ind AS financialstatements indicating the existence of material uncertainty on the Company's ability tomeet it's debt obligations. The appropriateness of going concern assumption is dependentupon Company's ability to raise funds through collections from sale of inventorymonetization of its non-core assets restructuring of the existing loans termsmobilization of additional funds and other strategic initiatives to meet its obligations.Our opinion is not modified in respect of this matter.
KEY AUDIT MATTERS
Key audit matters are those matters that in our professional judgmentwere of most significance in our audit of the standalone Ind AS financial statements forthe financial year ended March 31 2022. These matters were addressed in the context ofour audit of the standalone Ind AS financial statements as a whole and in forming ouropinion thereon and we do not provide a separate opinion on these matters. For eachmatter below our description of how our audit addressed the matter is provided in thatcontext.
In addition to the matter described in the Emphasis of Matter sectionwe have determined the matters described below to be the key audit matters to becommunicated in our report. We have fulfilled the responsibilities described in theAuditor's responsibilities for the audit of the standalone Ind AS financial statementssection of our report including in relation to these matters. Accordingly our auditincluded the performance of procedures designed to respond to our assessment of the risksof material misstatement of the standalone Ind AS financial statements. The results of ouraudit procedures including the procedures performed to address the matters below providethe basis for our audit opinion on the accompanying standalone Ind AS financialstatements.
|Key audit matters ||How our audit addressed the key audit matter |
|Assessing the carrying value of Inventory (as described in note 11 of the standalone financial statements) |
|As at March 31 2022 the carrying value of the inventory of ongoing and completed real estate projects is Rs. 117476 Lakhs. The inventories are held at the lower of the cost and net realisable value. ||Our audit procedures included considering the Company's accounting policies with respect to valuation of inventories in accordance with Ind AS 2 "Inventories". |
|The cost of the inventory is calculated using actual land acquisition costs construction costs development related costs and interest capitalised for eligible projects. ||We assessed the Company's methodology based on current economic and market conditions including effects of COVID-19 pandemic applied in assessing the carrying value of Inventory balance. |
|We identified the assessment of whether carrying value of inventory were stated at the lower of cost and net realisable value ("NRV") as a key audit matter due to the significance of the balance to the standalone financial statements as a whole and the involvement of estimations in the assessment. The determination of the NRV involves estimates based on prevailing market conditions and taking into account the estimated future selling price cost to complete projects and selling costs. ||We performed test of controls over process of valuation of inventory and authorization for inventory write down. |
| ||We performed the following test of details: |
| ||- Assessed the methods used by the management in determining the NRV of ongoing and completed real estate projects including effects of COVID-19 pandemic applied in assessing the NRV. - Obtained read and assessed the management's process in estimating the future costs to completion for inventory of ongoing projects. - Discussed with management the life cycle of the project key project risks changes to project strategy current and future estimated sales prices construction progress and impairment. - Compared the NRV to recent sales in the project or to the estimated selling price in the nearby properties. |
|Key audit matters ||How our audit addressed the key audit matter |
|Assessing impairment of Investments and receivables from investee companies (as described in note 7 8 9 and 55 of the standalone financial statements) || |
|As at March 31 2022 the carrying values of Company's investment in subsidiaries joint venture and associate companies amounted to Rs. 1731 Lakhs. Receivables from the subsidiaries joint venture and associate companies including interest accrued amounted to Rs. 25720 Lakhs. Management reviews regularly whether there are any indicators of impairment of the investments and receivables by reference to the requirements under Ind AS 36 "Impairment of Assets". ||Our audit procedures included considering the Company's accounting policies with respect to impairment in accordance with Ind AS 36 "Impairment of Assets" |
|For investments where impairment indicators exist significant judgments are required to determine the key assumptions used in the discounted cash flow models such as revenue growth unit price and discount rates. We focused our effort on those cases with impairment indicators. ||We performed test of controls over impairment process through inspection of evidence of performance of these controls. |
|As the impairment assessment involves significant assumptions and judgement we regard this as a key audit matter. ||We performed the following test of details: |
| ||- We assessed the Company's valuation methodology and assumptions applied based on current economic and market conditions including effects of COVID-19 pandemic in determining the recoverable amount. |
| ||- We obtained and read the valuation report used by the management for determining the fair value ('recoverable amount') of its investments and receivables from investee Companies. |
| ||- We assessed the key assumptions included in the cash flow forecasts by management including considerations due to current economic and marketconditions including effects of COVID-19 pandemic. |
| ||- We involved our valuation expert for assisting us in reviewing and evaluating the management's assessment in this matter. |
| ||- We compared the fair value of the investment and receivables as mentioned in the valuation report to the carrying value in books. |
| ||- We performed sensitivity analysis on the key assumptions adopted in the impairment assessments to understand the impact of reasonable changes in assumptions on the estimated recoverable amounts. |
| ||- We tested the disclosures in accordance with the Ind AS 36 "Impairment of Assets" |
Information Other than the Financial Statements and Auditor?sReport Thereon
The Company's Board of Directors is responsible for the otherinformation. The other information comprises the information included in the Annualreport but does not include the standalone Ind AS financial statements and our auditor'sreport thereon. The annual report is expected to be made available to us after the date ofthis Auditors report.
Our opinion on the standalone Ind AS financial statements does notcover the other information and we do not express any form of assurance conclusionthereon.
In connection with our audit of the standalone Ind AS financialstatements our responsibility is to read the other information identified above when itbecomes available and in doing so consider whether such other information is materiallyinconsistent with the financial statements or our knowledge obtained in the audit orotherwise appears to be materially misstated.
When we read the annual report if we conclude that there is a materialmisstatement therein we are required to communicate the matter to those charged withgovernance.
Responsibilities of Management for the Standalone Ind AS FinancialStatements
The Company's Board of Directors is responsible for the matters statedin section 134(5) of the Act with respect to the preparation of these standalone Ind ASfinancial statements that give a true and fair view of the financial position financialperformance including other comprehensive income cash flows and changes in equity of theCompany in accordance with the accounting principles generally accepted in Indiaincluding the Indian Accounting Standards (Ind AS) specified under section 133 of the Actread with the Companies (Indian Accounting Standards) Rules 2015 as amended. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; andthe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the standalone Ind AS financialstatements that give a true and fair view and are free from material misstatement whetherdue to fraud or error.
In preparing the standalone Ind AS financial statements management isresponsible for assessing the Company's ability to continue as a going concerndisclosing as applicable matters related to going concern and using the going concernbasis of accounting unless management either intends to liquidate the Company or to ceaseoperations or has no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing theCompany's financial reporting process.
Auditor?s Responsibilities for the Audit of the Standalone Ind ASFinancial Statements
Our objectives are to obtain reasonable assurance about whether thestandalone Ind AS financial statements as a whole are free from material misstatementwhether due 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 Ind AS financialstatements.
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 Ind AS financial statements whether due to fraud or error design and performaudit procedures responsive to those risks and obtain audit evidence that is sufficientand appropriate 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 fraudmay involve collusion forgery intentional omissions misrepresentations or the overrideof internal control.
Obtain an understanding of internal control relevant to theaudit in order to design audit procedures that are appropriate in the circumstances. Undersection 143(3)(i) of the Act we are also responsible for expressing our opinion onwhether the Company has adequate internal financial controls with reference to financialstatements in place and the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and thereasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the goingconcern basis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompany's ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditor's report to therelated disclosures in the financial statements or if such disclosures are inadequate tomodify our opinion. Our conclusions are based on the audit evidence obtained up to thedate of our auditor's report. However future events or conditions may cause the Companyto cease to continue as a going concern.
Evaluate the overall presentation structure and content of thestandalone Ind AS financial statements including the disclosures and whether thestandalone Ind AS financial statements represent the underlying transactions and events ina manner that achieves fair presentation.
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 standalone IndAS financial statements for the financial year ended March 31 2022 and are therefore thekey audit matters. We describe these matters in our auditor's report unless law orregulation precludes public disclosure about the matter or when in extremely rarecircumstances we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the publicinterest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2020("the Order") issued by the Central Government of India in terms of sub-section(11) of section 143 of the Act we give in the "Annexure 1" a statement on thematters specified in paragraphs 3 and 4 of the Order.
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 havebeen kept 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 theStatement of Other Comprehensive Income the Cash Flow Statement and Statement of Changesin Equity dealt with by this Report are in agreement with the books of account;
(d) In our opinion the aforesaid standalone Ind AS financialstatements comply with the Accounting Standards specified under Section 133 of the Actread with Companies (Indian Accounting Standards) Rules 2015 as amended;
(e) The going concern described in paragraphs above in our opinionmay have an adverse effect on the functioning of the Company;
(f) On the basis of the written representations received from thedirectors as on March 31 2022 taken on record by the Board of Directors none of thedirectors is disqualified as on March 31 2022 from being appointed as a director in termsof Section 164 (2) of the Act;
(g) With respect to the adequacy of the internal financial controlsover financial reporting of the Company with reference to these standalone Ind ASfinancial statements and the operating effectiveness of such controls refer to ourseparate Report in "Annexure 2" to this report;
(h) In our opinion the managerial remuneration for the year endedMarch 31 2022 has been paid / provided by the Company to its directors in accordance withthe provisions of section 197 read with Schedule V to the Act;
(i) With respect to the other matters to be included in the Auditor'sReport in accordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 asamended in our opinion and to the best of our information and according to theexplanations given to us:
i. The Company has disclosed the impact of pending litigations on itsfinancial position in its standalone Ind AS financial statements - Refer Note 36 to thestandalone Ind AS financial statements;
ii. The Company did not have any long-term contracts includingderivative contracts for which there were any material foreseeable losses;
iii. There has been no delay in transferring amounts required to betransferred to the Investor Education and Protection Fund by the Company
iv. a) The management has represented that
to the best of its knowledge and belief no funds have been advanced orloaned or invested (either from borrowed funds or share premium or any other sources orkind of funds) by the Company to or in any other persons or entities /including foreignentities ("Intermediaries") with the understanding whether recorded in writingor otherwise that the Intermediary shall whether directly or indirectly lend or investin other persons or entities identified in any manner whatsoever by or on behalf of theCompany ("Ultimate Beneficiaries") or provide any guarantee security or thelike on behalf of the Ultimate Beneficiaries;
b) The management has represented that to the best of its knowledgeand belief no funds have been received by the Company from any persons or entitiesincluding foreign entities ("Funding Parties") with the understanding whetherrecorded in writing or otherwise that the Company shall whether directly or indirectlylend or invest in other persons or entities identified in any manner whatsoever by or onbehalf of the Funding Party ("Ultimate Beneficiaries") or provide any guaranteesecurity or the like on behalf of the Ultimate Beneficiaries; and
c) Based on such audit procedures performed that have been consideredreasonable and appropriate in the circumstances nothing has come to our notice that hascaused us
to believe that the representations under sub-clause (a) and (b)contain any material misstatement.
v. No dividend has been declared or paid during the year by theCompany.
ANNEXURE 1 REFERRED TO IN PARAGRAPH 1 UNDER THE HEADING "REPORT ONOTHER LEGAL AND REGULATORY REQUIREMENTS" OF OUR REPORT OF EVEN DATE
Re: Peninsula Land Limited (the Company?)
In terms of the information and explanations sought by us and given bythe company and the books of account and records examined by us in the normal course ofaudit and to the best of our knowledge and belief we state that:
(i) (a) (A) The Company has maintained proper records showing fullparticulars including quantitative details and situation of Property Plant andEquipment.
(a) (B) The Company has maintained proper records showing fullparticulars of intangibles assets.
(b) All Property Plant and Equipment were physically verified by themanagement in the previous years in accordance with a planned programme of verifying themonce in three years which is reasonable having regard to the size of the Company and thenature of its assets.
(c) The title deeds of all the immovable properties (other thanproperties where the Company is the lessee and the lease agreements are duly executed infavour of the lessee) are held in the name of the Company
(d) The Company has not revalued its Property Plant and Equipment(including Right of use assets) or intangible assets during the year ended March 31 2022.
(e) There are no proceedings initiated or are pending against theCompany for holding any benami property under the Prohibition of Benami PropertyTransactions Act 1988 and rules made thereunder
(ii) (a) The inventory has been physically verified by the
management during the year except for inventories lying with thirdparties. In our opinion the frequency of verification by the management is reasonable andthe coverage and procedure for such verification is appropriate. Inventories lying withthird parties have been confirmed by them as at March 31 2022 and discrepancies were notnoticed in respect of such confirmations. No material discrepancies were noticed on suchphysical verification.
(b) As stated in the Notes 62 to the financial statements andrepresented by the management no quarterly returns/statements are filed by the Companywith banks and financial institutions in relation to sanctioned working capital limits inexcess of five crore rupees in aggregate on the basis of security of current assets.
(iii) (a) During the year the Company has provided loans advances inthe nature of loans stood guarantee and provided security to companies firms LimitedLiability Partnerships or any other parties as follows:
|Aggregate amount granted/ provided during the year (Amount in Lakhs) ||Guarantees ||Security ||Loans |
|- Subsidiaries ||- ||1941 ||3768 |
|- Joint Ventures ||- ||- ||119 |
|- Associates ||- ||- ||39 |
|- Others ||- ||- ||- |
|Balance outstanding as at balance sheet date in respect of above cases net of Impairment || || || |
|- Subsidiaries ||5735 ||1941 ||21764 |
|- Joint Ventures ||- ||- ||3956 |
|- Associates ||- ||- ||- |
|- Others ||- ||- ||- |
(b) The Company has granted loans and provided security forinfrastructure purposes to it's subsidiary companies joint venture company and associatecompany. We are informed by the Company that loans granted to subsidiary companies areinterest free considering the furtherance of the business objectives of the Company andaccordingly having regard to such management representation in our opinion the termsand conditions of the grant of all loans as stated above are not prejudicial to theCompany's interest.
(c) The Company has granted loans that are repayable on demand toSubsidiaries joint venture and associate Company and other companies. The loan providedto subsidiary companies are interest free. For loans granted to joint venture companyassociate company and other companies schedule of payment of interest has beenstipulated.
For loans granted to a Joint Venture Associate and other companiesinterest income is not recognised considering uncertainity of collection. Hence we areunable to comment on the regularity of interest payment by these companies.
The relevant information in relation to these loans granted andoutstanding as of the balance sheet date is as follows:
(Rs in Lakhs)
|Name of the Entity ||Relationship ||Gross Amount before Impairment (amount in Lakhs) ||Due date Extent of Remarks if any delay |
|Peninsula Holdings and Investment Pvt. Ltd. ||Subsidiary ||28932 || |
|Rockfirst Real Estate Ltd ||Subsidiary ||7739 ||All the loans are repayable on demand. We are informed that the company has not demanded repayment of any such loan during the year and thus there has been no default on the part of the parties to whom the money has been lent. Accordingly information relating to due date and extent of delay has not been provided. |
|Inox Mercantile Company Pvt. Ltd. ||Step Down Subsidiary ||2996 || |
|Truewin Realty Ltd. ||Step Down Subsidiary ||5964 || |
|Peninsula Pharma Research Centre Pvt. Ltd ||Step Down Subsidiary ||2201 || |
|Topvalue Real Estate Development Ltd. ||Step Down Subsidiary ||1071 || |
|Planetview Mercantile Co. Pvt. Ltd ||Step Down Subsidiary ||1057 || |
|Takenow Property Developers Pvt. Ltd. ||Step Down Subsidiary ||309 || |
|Peninsula Mega City Development Pvt Ltd ||Step Down Subsidiary ||44 || |
|Midland Township Pvt. Ltd. ||Subsidiary ||56 || |
|Bridgeview Real Estate LLP ||Joint Venture ||7923 || |
|RA Realty Ventures LLP ||Associate ||19418 || |
|Rak Construction Project ||Other Companies ||375 || |
|RAK Realty Private Ltd ||Other Companies ||491 || |
|KS Enterprises ||Other Companies ||274 ||Refer reporting in point (d) below for other Companies |
(d) The following amounts are overdue for more than ninety days fromcompanies firms Limited Liability Partnerships or any other parties to whom loan hasbeen granted during the year and reasonable steps have not been taken by the Company forrecovery of the overdue amount of principal and interest.
|Number of Cases ||Principal Amount Overdue ||Interest Overdue ||Total Overdue ||Remarks if any |
|3 ||1140 ||- ||1140 || |
e) There were no loans or advance in the nature of loan granted tocompanies firms Limited Liability Partnerships or any other parties which was fallen dueduring the year that have been renewed or extended or fresh loans granted to settle theoverdues of existing loans given to the same parties.
(f) As disclosed in note 9 to the financial statements the Company hasgranted loans or advances in the nature of loans either repayable on demand
or without specifying any terms or period of repayment to companiesfirms Limited Liability Partnerships or any other parties. Of these following are thedetails of the aggregate amount of loans or advances in the nature of loans granted topromoters or related parties as defined in clause (76) of section 2 of the Companies Act2013:
| ||All Parties ||Promoters ||Related |
| || || ||Parties |
|Aggregate amount of loans/ advances in nature of loans granted during the year - Repayable on demand ||3926 || ||3926 |
|Percentage of loans/ advances in nature of loans to the total loans granted during the year ||100% || |
(iv) Loans investments guarantees and security in respect of whichprovisions of sections 185 and 186 of the Companies
Act 2013 are applicable have been complied with by the Company.
(v) The Company has neither accepted any deposits from the public noraccepted any amounts which are deemed to be deposits within the meaning of sections 73 to76 of the Companies Act and the rules made thereunder to the extent applicable.Accordingly the requirement to report on clause 3(v) of the Order is not applicable tothe Company.
(vi) The Central Government has prescribed the maintenance of costrecords for the products/services of the Company under sub-section (1) of Section 148 ofthe Act and the rules framed there under. However as represented by the management of theCompany these records are not required to be made and maintained in case the projects areonly residential in nature. Accordingly the Management has not made and maintained theprescribed accounts and records.
(vii) (a) Undisputed statutory dues including goods and services taxprovident fund employees' state insurance income-tax sales-tax service tax duty ofcustom duty of excise value added tax cess and other statutory dues have not beenregularly deposited with the appropriate authorities and there have been serious delays inlarge number of cases.
According to the information and explanations given to us and based onaudit procedures performed by us no undisputed amounts payable in respect of thesestatutory dues were outstanding at the year end for a period of more than six monthsfrom the date they became payable.
(b) The dues of goods and services tax provident fund employees'state insurance income-tax sales-tax service tax duty of custom duty of excise valueadded tax cess and other statutory dues have not been deposited on account of anydispute are as follows:
|Name of the statute ||Nature of the dues ||Amount (Rs in lakhs) ||Period to which the amount relates ||Forum where the dispute is pending |
|Maharashtra Value Added Tax Act 2002 ||Value Added Tax ||1722.00 ||FY 2006-07 to FY 2017-18 ||Deputy Commissioner of Sales Tax Appeals |
|Maharashtra Value Added Tax Act 2002 ||Value Added Tax ||184.00 ||FY 2011-12 ||Joint Commissioner of Sales Tax (Appeals) |
|Maharashtra Value Added Tax Act 2002 ||Goods and service tax ||687.00 ||FY 2017-18 ||Deputy Commissioner of State tax GST |
|Finance Act 1994 ||Service Tax ||105.43 ||FY 2016-17 ||Additional Commissioner GST |
|Finance Act 1994 ||Service Tax ||574.00 ||FY 2015-16 and 2016-17 ||Director General of Goods and Services Tax Intelligence |
|Finance Act 1994 ||Goods and service Tax ||67.00 ||FY 2017-18 ||Deputy Commissioner of Central tax GST |
(viii) The Company has not surrendered or disclosed any
transaction previously unrecorded in the books of account in the taxassessments under the Income Tax Act 1961 as income during the year. Accordingly therequirement to report on clause 3(viii) of the Order is not applicable to the Company.
(ix) (a) The Company has defaulted in repayment of dues to financialinstitutions banks and Government / debenture holders during the year as stated below.This matter has been disclosed in note 22 to the financial statements:
|Nature of Borrowing including debt Securities ||Name of lender ||Amount not paid on due date ||Whether principal or Interest ||No of days delay or unpaid ||Remarks if any |
|Secured Loan for Project ||ICICI Bank ||120254946 ||Interest ||Delay in days ranging from 01- 37 days. || |
|Secured Loan for Project ||ICICI Bank ||47182257 ||Interest ||Delay in days ranging from 04- 20 days. || |
|Secured Loan for Project ||ICICI Bank ||19067593 ||Interest ||Delay in days ranging from 02- 20 days. || |
|Secured Loan for Project ||RBL Loan ||53087921 ||Interest ||Default in days ranging from 30 -31 days. ||Unpaid till approval of this financial statements |
|Secured Loan for Project ||Indian Bank ||4031044 ||Interest ||Delay in days ranging from 05- 55 days || |
|Nature of Borrowing including debt Securities ||Name of lender ||Amount not paid on due date ||Whether principal or Interest ||No of days delay or unpaid ||Remarks if any |
|Secured Loan for Project ||Indian Bank ||2628425 ||Interest ||Delay in days ranging from 05- 55 days || |
|Secured Loan for Project ||Indian Bank ||9820660 ||Interest ||Delay in days ranging from 05- 55 days || |
|Secured Loan for Project ||SBI ||118235905 ||Interest ||Delay in days ranging from 05- 53 days || |
|Secured Loan for Project ||SBI ||1449171 ||Interest ||1 day || |
|Bank Overdraft ||HDFC ||3558000 ||Interest ||Delay in days ranging from 27- 30 days . || |
|Bank Overdraft ||RBL ||46055583 ||Interest ||Default in days ranging from 30 -31 days || |
|Bank Overdraft ||ICICI ||6839497 ||Interest ||Delay in days ranging from 02- 07 days . || |
|Secured Loan for Project ||RBL ||366123592 ||Principal ||More than 365 days ||Unpaid till approval of this financial statements |
|Bank Overdraft ||RBL ||344800000 ||Principal ||More than 365 days ||Unpaid till approval of this financial statements |
(b) The Company has not been declared wilful defaulter by any bank orfinancial institution or government or any government authority.
(c) Term loans were applied for the purpose for which the loans wereobtained.
(d) On an overall examination of the financial statements of theCompany the Company has used funds raised on short-term basis in the form of short-termborrowings and working capital aggregating to Rs. 20236 Lakhs for long-term purposesrepresenting acquisition of Investment properties and loans to Group Companies.
(e) On an overall examination of the financial statements of theCompany the Company has not taken any funds from any entity or person on account of or tomeet the obligations of its subsidiaries associates or joint ventures.
(f) The Company has not raised loans during the year on the pledge ofsecurities held in its subsidiaries joint ventures or associate companies. Hence therequirement to report on clause (ix)(f) of the Order is not applicable to the Company.
x) (a) The Company has not raised any money during the year by way ofinitial public offer / further public offer (including debt instruments) hence therequirement to report on clause 3(x)(a) of the Order is not applicable to the Company.
(b) The Company has not made any preferential allotment or privateplacement of shares /fully or partially or optionally convertible debentures during theyear under audit and hence the requirement to report on clause 3(x)(b) of the Order isnot applicable to the Company.
(xi) (a) No fraud/ material fraud by the Company or no fraud / materialfraud on the Company has been noticed or reported during the year.
(b) During the year no report under sub-section (12) of section 143 ofthe Companies Act 2013 has been filed by cost auditor secretarial auditor or by us inForm ADT - 4 as prescribed under Rule 13 of Companies (Audit and Auditors) Rules 2014with the Central Government.
(c) As represented to us by the management there are no whistle blowercomplaints received by the Company during the year.
(xii) The Company is not a nidhi Company as per the provisions of theCompanies Act 2013. Therefore the requirement to report on clause 3(xii)(a) 3(xii)(b)and 3(xii)(c) of the Order is not applicable to the Company.
(xiii) Transactions with the related parties are in compliance withsections 177 and 188 of Companies Act 2013 where applicable and the details have beendisclosed in the notes to the financial statements as required by the applicableaccounting standards.
(xiv) (a) The Company has an internal audit system commensurate withthe size and nature of its business.
(b) The internal audit reports of the Company issued till the date ofthe audit report for the period under audit have been considered by us.
(xv) The Company has not entered into any non-cash transactions withits directors or persons connected with its directors and hence requirement to report onclause 3(xv) of the Order is not applicable to the Company
(xvi) (a) The provisions of section 45-IA of the Reserve Bank of IndiaAct 1934 (2 of 1934) are not applicable to the Company. Accordingly the requirement toreport on clause (xvi)(a) of the Order is not applicable to the Company.
(b) The Company is not engaged in any Non-Banking Financial or HousingFinance activities. Accordingly the requirement to report on clause (xvi)(b) of the Orderis not applicable to the Company.
(c) The Company is not a Core Investment Company as defined in theregulations made by Reserve Bank of India. Accordingly the requirement to report onclause 3(xvi) of the Order is not applicable to the Company
(d) There is no Core Investment Company as a part of the Group hencethe requirement to report on clause 3(xvi)(d) of the Order is not applicable to theCompany.
(xvii) The Company has not incurred cash losses in the currentfinancial year. The Company incurred cash losses in the immediately preceding financialyear.
(xviii) There has been no resignation of the statutory auditors duringthe year and accordingly requirement to report on Clause 3(xviii) of the Order is notapplicable to the Company.
(xix) As referred to in 'Material uncertainty related to Going concern'paragraph in our main audit report and as disclosed in Note 56 to the financial statementswhich includes the financial ratios and ageing and expected dates of realization offinancial assets and payment of financial liabilities other information accompanying thefinancial statements our knowledge of the Board of Directors and management plans andbased on our examination of the evidence supporting the assumptions there exists amaterial uncertainty that the Company may not be capable of meeting its liabilitiesexisting at the date of balance sheet as and when they fall due within a period of oneyear from the balance sheet date.
We further state that this is not an assurance as to the futureviability of the Company and our reporting is based on the facts up to the date of theaudit report and we neither give any guarantee nor any assurance that all liabilitiesfalling due within a period of one year from the balance sheet date will get dischargedby the Company as and when they fall due.
(xx) The provisions of Section 135 to the Companies Act 2013 inrelation to Corporate Social Responsibility is not applicable to the Company. Accordinglythe requirement to report on clause 3(xx)(a) and 3(xx) (b) of the Order is not applicableto the Company
ANNEXURE 2 TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THESTANDALONE FINANCIAL STATEMENTS OF PENINSULA LAND LIMITED
Report on the Internal Financial Controls under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls with reference tostandalone financial statements of Peninsula Land Limited ("the Company") as ofMarch 31 2022 in conjunction with our audit of the standalone financial statements of theCompany 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 the Institute of Chartered Accountants of India. Theseresponsibilities include the design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the orderly and efficientconduct of its business including adherence to the Company's policies the safeguardingof its assets the prevention and detection of frauds and errors the accuracy andcompleteness of the accounting records and the timely preparation of reliable financialinformation as required under the Act.
Our responsibility is to express an opinion on the Company's internalfinancial controls over financial reporting with reference to these standalone financialstatements based on our audit. We conducted our audit in accordance with the Guidance Noteon Audit of Internal Financial Controls Over Financial Reporting (the "GuidanceNote") and the Standards on Auditing as specified under section 143(10) of the Actto the extent applicable to an audit of internal financial controls and both issued byICAI. Those Standards and the Guidance Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting with reference to thesestandalone financial statements was established and maintained and if such controlsoperated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence aboutthe adequacy of the internal financial controls with reference to these standalonefinancial statements and their operating effectiveness. Our audit of internal financialcontrols with reference to standalone financial statements included obtaining anunderstanding of internal financial controls with reference to these standalone financialstatements 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 sufficient andappropriate to provide a basis for our audit opinion on the Company's internal financialcontrols with reference to these standalone financial statements.
Meaning of Internal Financial Controls With Reference to theseStandalone Financial Statements
A company's internal financial controls with reference to standalonefinancial statements is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles. A company'sinternal financial controls with reference to standalone financial statements includesthose policies and procedures that (1) pertain to the maintenance of records that inreasonable detail accurately and fairly reflect the transactions and dispositions of theassets of the company; (2) provide reasonable assurance that transactions are recorded asnecessary to permit preparation of financial statements in accordance with generallyaccepted accounting principles and that receipts and expenditures of the company arebeing made only in accordance with authorisations of management and directors of thecompany; 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 With Reference toStandalone Financial Statements
Because of the inherent limitations of internal financial controls withreference to standalone financial statements including the possibility of collusion orimproper management override of controls material misstatements due to error or fraud mayoccur and not be detected. Also projections of any evaluation of the internal financialcontrols with reference to standalone financial statements to future periods are subjectto the risk that the internal financial control with reference to standalone financialstatements may become inadequate because of changes in conditions or that the degree ofcompliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects adequateinternal financial controls with reference to standalone financial statements and suchinternal financial controls with reference to standalone financial statements wereoperating effectively as at March 31 2022 based on the internal control over financialreporting criteria established by the Company considering the essential components ofinternal control stated in the Guidance Note issued by the ICAI.
|For S R B C & CO LLP |
|Chartered Accountants |
|ICAI Firm Registration Number: 324982E/E300003 |
|per Firoz Pradhan |
|Membership Number: 109360 |
|UDIN: 22109360AJPTOA3010 |
|Place of Signature: Mumbai |
|Date: 25th May 2022 |