The Members of Thakkers Developers Limited
We have audited the accompanying standalone Ind as financial statements of ThakkersDevelopers Limited ('the Company') which comprise the Balance sheet as at 31 March2019 the Statement of Profit and Loss including the Statement of Other ComprehensiveIncome the Cash flow statement for the year then ended and a Statement of changes inequity for the year ended and notes to financial statements including a summary ofsignificant accounting policies and other explanatory information.
In our opinion & to the best of our information & according to the explanationsgiven to us the said accounts give the information required by the Companies Act in themanner so required & give a true & fair view in conformity with the accountingprinciples generally accepted in India:
(a) In the case of the Balance Sheet and the Statement of Changes in Equity of thestate of affairs of the Company as at 31st March 2019 &
(b) In the case of the statement of Profit & Loss including the statement of OtherComprehensive Income of the Profit for the year ended on that date.
(c) In case of the Cash flow statements the cash flows for the year ended on thatdate.
2) Basis for opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specifiedunder section 143(10) of the Companies Act 2013. Our responsibilities under thoseStandards are further described in the Auditors Responsibilities for the Audit ofthe Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules thereunder and we havefulfilled our other ethical responsibilities in accordance with these requirements and theCode of Ethics. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.
3) Emphasis of Matter
a) Of the total tangible assets of Rs. 554.27 lacs (Written down value) Vehicles ofRs.217.98 lacs (Written down value) are registered in the name of the Directors.
b) Further it was noted that the internal financial controls of the Company need to bestrengthened to commensurate with the nature and size of the Group.
c) The Company has neither provided nor spent an amount which was required to beprovided under Section 135 of the Companies Act 2013 towards Corporate SocialResponsibility from the financial years 2014-15 to 2018-19.
Our report is not qualified in respect of the above matter.
4) Information Other than the Financial Statements and Auditors Report.
The Companys Board of Directors is responsible for the other information. Theother information comprises the information included in the Board of Directors report butdoes not include the financial statements and our auditors report thereon.
Our opinion on the financial statements does not cover the other information and wewill not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained in theaudit or otherwise appears to be materially misstated. If based on the work we haveperformed we conclude that there is a material misstatement of this other information weare required to report that fact. We have nothing to report in this regard.
5] Responsibilities of Management and those charged with the Governance for theFinancial Statements
The Companys Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparationand presentation of these financial statements that give a true and fair view of thefinancial position financial performance and cash flows of the Company in accordance withthe accounting principles generally accepted in India including the Accounting Standardsspecified under Section 133 of the Act read with Rule 7 of the Companies (Accounts)Rules 2014. This responsibility also includes maintenance of adequate accounting recordsin accordance with the provisions of the Act for safeguarding the assets of the Companyand for preventing and detecting frauds and other irregularities; selection andapplication of appropriate accounting policies; making judgments and estimates that arereasonable and prudent; and design implementation and maintenance of adequate internalfinancial controls that were operating effectively for ensuring the accuracy andcompleteness of the accounting records relevant to the preparation and presentation ofthe financial statements that give a true and fair view and are free from materialmisstatement whether due to fraud or error.
In preparing the financial statements management is responsible for assessing theCompanys ability to continue as a going concern disclosing as applicable mattersrelated to going concern and using the going concern basis of accounting unless managementeither intends to liquidate the Company or to cease operations or has no realisticalternative but to do so.
The Board of Directors are also responsible for overseeing the Companys financialreporting process.
6] Auditors Responsibility
Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditors report that includes our opinion. Reasonable assurance is ahigh level of assurance but is not a guarantee that an audit conducted in accordance withSAs will always detect a material misstatement when it exists. Misstatements can arisefrom fraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken onthe basis of these financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financialstatements whether due to fraud or error design and perform audit procedures responsiveto those risks and obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion. The risk of not detecting a material misstatement resulting fromfraud is higher than for one resulting from error as fraud may involve collusionforgery intentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order todesign audit procedures that are appropriate in the circumstances. Under Section 143(3)(i) of the Act we are also responsible for expressing our opinion on whether the companyhas adequate internal financial controls with reference to financial statements in placeand the operating effectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonablenessof accounting estimates and related disclosures made by management.
Conclude on the appropriateness of managements use of the going concernbasis of accounting and based on the audit evidence obtained whether a materialuncertainty exists related to events or conditions that may cast significant doubt on theCompanys ability to continue as a going concern. If we conclude that a materialuncertainty exists we are required to draw attention in our auditors 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 auditors report. However future events or conditions may cause theCompany to cease to continue as a going concern.
Evaluate the overall presentation structure and content of the financialstatements including the disclosures and whether the financial statements represent theunderlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
7] Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditors Report) Order 2016 ("theOrder") issued by the Central Government of India in terms of sub-section (11) ofsection 143 of the Act we give in the "Annexure A" a statement on the mattersspecified in the paragraph 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 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 balance sheet the statement of profit and loss the cash flow statement thestatement of other comprehensive income and the statement of changes in equity dealt withby this Report are in agreement with the books of account.
(d) In our opinion the aforesaid financial statements comply with the AccountingStandards specified under Section 133 of the Act read with Companies (Indian AccountingStandards) Rules 2015 as amended.
(e) On the basis of the written representations received from the directors as on 31March 2019 taken on record by the Board of Directors none of the directors isdisqualified as on 31 March 2019 from being appointed as a director in terms of Section164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls over financialreporting of the Company and the operating effectiveness of such controls refer to ourseparate report in "Annexure B"; and
(g) With respect to the other matters to be included in the Auditors Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 in our opinionand to the best of our information and according to the explanations given to us:
i. The Company has disclosed the impact of pending litigations on its financialposition in its Standalone Financial Statements.
ii. The Company did not have any long-term contracts including derivative contracts forwhich there were any material foreseeable losses.
iii. There were no amounts to be transferred to the Investor Education and ProtectionFund by the Company except for an unclaimed dividend of Rs. 156840/- which wastransferred to the said fund after the due date.
| ||For S.R.RAHALKAR & ASSOCIATES |
|Place: Nasik ||CHARTERED ACCOUNTANTS |
|Date: 30 May 2019 ||Firm Registration No.108283W |
| ||S.R.RAHALKAR |
| ||Partner |
| ||Membership Number 014509 |
Annexure A to the Auditors Report
The Annexure referred to paragraph 1 under the heading "Report on other legal andregulatory requirements" of the Independent Auditors Report of even date to themembers of M/S Thakkers Developers Limited) on the standalone Ind AS financialstatements for the year Ended on 31/03/2019. We report that:
(i) (a) The company has maintained records of Fixed Assets so as to show fullparticulars however the quantitative details and situations of the fixed assets has notbeen mentioned in the Fixed Assets register.
(b) Based on the information made available to us the fixed assets are physicallyverified by the management as per a phased programme of verification. However we have notbeen provided with the Physical verification report of the Fixed Assets.
(c) According to information and explanations given by the management the titledeeds/lease deeds of immovable properties included in property plant and equipment areheld in the name of the Company.
(ii) The management has conducted physical verification of inventory at reasonableintervals during the year and no material discrepancies were noticed on such physicalverification.
(iii) The Company has not granted loans and advances to parties covered in the registermaintained under section 189 of the Companies Act 2013 (the Act). Hencereporting under this clause is not applicable to the company.
(iv) In our opinion and according to the information and explanations provided to usthe Company has complied with the provisions of Section 185 and Section 186 of the Act inrespect of investments made or loans or guarantee or security provided as applicable.
(v) In our opinion and according the information and explanations given to us thecompany has not accepted deposits within the meaning of Sections 73 to 76 of the Act andthe Companies (Acceptance of Deposits) Rules 2014 (as amended). Accordingly paragraph3(v) of the Order is not applicable to the company.
(vi) Pursuant to the rules made by the Central Government of India the company isrequired to maintain cost records as specified under Section 148(1) of the Act in respectof its products. We have broadly reviewed the same and are of the opinion that primafacie the prescribed accounts and records have been made and maintained. We have nothowever made a detailed examination of the records with a view to determine whether areaccurate and complete.
(vii) (a) Undisputed statutory dues including provident fund employees stateinsurance income-tax sales-tax service tax duty of customs duty of excise valueadded tax cess and other material Statutory dues have been regularly deposited with theappropriate authorities though there has been a slight delay in a few cases.
According to the information and explanations given to us no undisputed amountspayable in respect of provident fund employees state insurance income-tax servicetax sales-tax duty of custom duty of excise value added tax cess and other statutorydues were outstanding at the year end for a period of more than six months from the datethey became payable.
(b) According to the records of the Company the dues outstanding of income-taxsales-tax service tax duty of custom duty of excise value added tax and cess onaccount of any dispute are as follows:
|Name of Statute ||Nature of the Dues ||Amount paid (Rs.) ||Period to which the Amount relates ||Forum where dispute is pending |
|Income Tax Act 1961 ||Tax Interest and penalty ||308703 ||2000-01 ||High Court Mumbai |
|Income Tax Act 1961 ||Tax Interest and penalty ||142841 ||2001-02 ||High Court Mumbai |
|Income Tax Act 1961 ||Tax Interest and penalty ||423941 ||2002-03 ||High Court Mumbai |
|Income Tax Act 1961 ||Tax Interest and penalty ||261918 ||2004-05 ||High Court Mumbai |
|Income Tax Act 1961 ||Tax Interest and penalty ||113848 ||2005-06 ||High Court Mumbai |
|Income Tax Act 1961 ||Tax Interest and penalty ||230785 ||2010-11 ||CIT (A)-12 Pune |
|Income Tax Act 1961 ||Tax Interest and penalty ||392924 ||2014-15 ||CIT (A)-12 Pune |
(viii) According to the records examined by us and the information and explanationgiven to us the company has not defaulted in repayments of loans or borrowings from anyfinancial institution bank government or debenture holder as applicable as at theBalance sheet date.
(ix) In our opinion and according to the information and explanations given to us themoneys raised by way of term loans have been applied on an overall basis for the purposesfor which they were obtained. The company has not raised money by way of initial publicoffer or further public offer including debt instruments) during the financial year.
(x) Based upon the audit procedures performed for the purpose of reporting the true andfair view of the Financial Statements and according to the information and explanationsprovided by the management we report that no fraud by the Company or no material fraud onthe Company by the officers and employees of the Company has been noticed or reportedduring the year nor have we been informed of any such case by the Management.
(xi) According to the information and explanations give to us and based on ourexamination of the records of the Company the Company has paid or provided for managerialremuneration in accordance with the requisite approvals mandated by the provisions ofsection 197 read with Schedule V to the Act.
(xii) In our opinion and according to the information and explanation given to us thecompany is not a company of Nidhi Company. Accordingly paragraph 3(xii) of the order isnot applicable.
(xiii) According to the information and explanations given to us and based on ourexamination of the records of the Company transactions with the related parties are incompliance with sections 177 and 188 of the Act where applicable and details of suchtransactions have been disclosed in the financial statements as required by the applicableaccounting standards.
(xiv) According to the information and explanation given to us and on the basis ofexplanation given to us the company has not made any preferential allotment or privateplacement of shares or fully or partly convertible debentures during the year.Accordingly paragraph 3(xiv) of the order is not applicable to the Company.
(xv) In our opinion and according to the information and explanation given to us thecompany has not entered into any non-cash transactions with directors or persons connectedwith directors. Accordingly paragraph 3(xv) of the order is not applicable to the Company.
(xvi) The company is not required to be registered under section 45-IA of the ReserveBank of India Act 1934. Accordingly paragraph 3(xvi) of the order is not applicable to thecompany.
|PLACE : Nashik. ||For S. R. Rahalkar & Associates |
|DATE : 30/05/2019. ||Chartered Accountants |
| ||FRN: 108283W |
| ||S.R. Rahalkar |
| ||Partner |
| ||Membership No. 014509 |
Annexure -B to the Auditors Report
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of ThakkersDevelopers Limited as of 31 March 2019 in conjunction with our audit of the StandaloneIND AS financial statements of the company for the year ended on that date.
Managements Responsibility for Internal Financial Controls
The Companys management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India (ICAI). 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 companys 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 Companies Act 2013.
Our responsibility is to express an opinion on the Companys internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. 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 was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditors judgment including the assessment of the risks ofmaterial misstatement of the standalone Ind AS financial statements whether due to fraudor error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our qualified audit opinion on the companys internal financialcontrols system over financial reporting.
Meaning of Internal Financial Controls over Financial Reporting with reference to theseFinancial Statements
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of standalone Ind AS financial statements for external purposes in accordancewith generally accepted accounting principles. A company's internal financial control overfinancial reporting includes those policies and procedures that (1) pertain to themaintenance of records that in reasonable detail accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonableassurance that transactions are recorded as necessary to permit preparation of standaloneInd AS financial statements in accordance with generally accepted accounting principlesand that receipts and expenditures of the company are being made only in accordance withauthorisations of management and directors of the company; and (3) provide reasonableassurance regarding prevention or timely detection of unauthorised acquisition use ordisposition of the company's assets that could have a material effect on the standaloneInd AS financial statements.
Inherent Limitations of Internal Financial Controls over Financial Reporting withreference to these Standalone Financial Statements
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects adequate internal financialcontrols over financial reporting with reference to these standalone financial statementsand such internal financial controls over financial reporting with reference to thesestandalone financial statements were operating effectively as at March 312019 based onthe 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 Institute ofChartered Accountants of India.
|PLACE : Nashik. ||For S. R. Rahalkar & Associates |
|DATE : 30/05/2019. ||Chartered Accountants |
| ||FRN: 108283W |
| ||S.R. Rahalkar |
| ||Partner |
| ||Membership No. 014509 |