| We have audited the accompanying financial statements of Samruddhi
Realty Limited ('the Company') which comprise the Balance Sheet as at
March 31, 2015, the Statement of Profit and Loss and Cash Flow
Statement for the year then ended and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated
in sub-section 5 of Section 134 of the Companies Act, 2013 ("the Act")
with respect to the preparation and presentation of these financial
statements that give a true and fair view of the financial position,
financial performance and cashflows of the Company in accordance with
the accounting principles generally accepted in India, including the
Accounting Standards specified under Section 133 of the Act, read with
Rule 7 of the Companies (Accounts) Rules, 2014. This responsibility
also includes maintenance of adequate accounting records in accordance
with the provisions of the Act for safeguarding the assets of the
Company and for preventing and detecting frauds and other
irregularities; selection and application of appropriate accounting
policies; making judgments and estimates that are reasonable and
prudent; and design, implementation and maintenance of adequate
internal financial controls, that were operating effectively for
ensuring the accuracy and completeness of the accounting records,
relevant to the preparation and presentation of the financial
statements that give a true and fair view and are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We have taken in to account the
provisions of the Act and the Rules made there under including the
Accounting Standards and matters which are required to be included in
the Audit Report.
We conducted -our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act and other applicable
authoritative pronouncements issued by The Institute of Chartered
Accountants of India (ICAI). Those Standards require that we comply
with ethical requirements & plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgement, including assessment of
risks of material misstatement in the financial statements,whether due
to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation of the
financial statements in order to design audit procedures, that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the entity's internal control. An
audit also includes evaluating the appropriateness of accounting
policies used and reasonableness of accounting estimates made by the
company's board, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion on these financial
statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid financial statements give the
information required by the Act in the manner so required and give a
true and fair view in conformity with the accounting principles
generally accepted in India:
(a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
(b) In the case of the Statement of Profit and Loss, of the profit for
the year ended on that date;
( c) In the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on other Legal and Regulatory Requirements
1 As required by the Companies (Auditor's Report) Order, 2015, issued
by the Central Government of India in terms of sub-section (11) of
Section 143 of the Act (hereinafter referred to as the "Order") and on
the basis of such checks of the books and records of the Company as we
considered appropriate and according to the information and explanation
given to us, we give in the Annexure a statement on the matters
specified in paragraph 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 explanations
which to the best of our knowledge and belief were necessary for the
purpose of our audit.
(b) In our opinion, proper books of account as required by law have
been kept by the Company, so far as it appears from our examination of
those books.
(c) The Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
account;
(d) In our opinion, the aforesaid financial statements comply with the
Accounting Standards specified under Section 133 of the Companies Act,
2013 ('Act') read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of written representations received from the Directors
as on March 31, 2015, and taken on record by the Board of Directors,
none of the Directors is disqualified as on March 31, 2015, from being
appointed as a Director in terms of sub-section (2) of Section 164 of
the Companies Act, 2013; and
(f) With respect to other matters to be included in the Auditors'
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and to the best of our knowledge & belief
and according to the information and explanations given to us:
(i) The Company has no pending litigations as per the information
furnished to us ;
(ii) The Company has not entered into any derivative transactions as
per the information furnished to us
(iii) The company is not liable transfer of any amount to Investor
Education And Protection Fund
1 (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) A substantial portion of the fixed assets have been physically
verified by the management during the year. According to the
information and explanations given to us, there is a regular programme
of verification which, in our opinion, is reasonable having regard to
the size of the Company and the nature of its assets. We are informed
that no material discrepancies were noticed on such verification.
(c ) Fixed assets disposed- off during the year were not substantial
and therefore do not affect the going concern status of the company.
2 (a) We are informed that inventories have been physically verified by
the management during the year and also at the end of the year. In our
opinion, the frequency of verification is reasonable.
(b) In our opinion and according to the information and explanations
given to us, the procedures of physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) In our opinion and according to the information and explanations
given to us, the Company is maintaining proper records of inventory. No
material discrepancies were noticed on such verification.
3 Other than for interest free amounts advanced in the normal course of
business to the tune of Rs. 50,85,866 to three entities, the Company
has not granted any loans, secured or unsecured to companies, firms or
other parties covered in the register maintained under section 189 of
the Companies Act, 2013("the Act"). According to the information and
explanations given to us, there are no specific covenants with regard
to interest/ repayment of such advances and the Company has not
demanded repayment of such advances during the year, thus, there is no
overdue amount and there has been no default on the part of the
entities to whom the money has been given.
4 In our opinion and according to the information and explanations
given to us, there are adequate internal control procedures
commensurate with the size of the Company and the nature of its
business with regard to purchase of inventory, fixed assets and for
sale of construction units. During the course of our audit, no major
weaknesses have been noticed in the internal control systems.
5 In our opinion and according to the information and explanations
given to us, the Company has not accepted any deposits from the public.
6 We have broadly reviewed the books of account maintained by the
Company pursuant to the rules prescribed by the Central Government for
maintenance of cost records under section 148(1) of the Companies Act,
2013 and are of the opinion that prima facie, the prescribed accounts
and records have been made and maintained. However, we have not made a
detailed examination of the records.
7 (a) According to the records, information and explanations, provided
to us, the Company is generally regular in depositing with appropriate
authorities undisputed amounts including Provident fund, Employees'
state insurance, Income tax, Sales tax, Wealth tax, Cess, Service tax
and other Statutory dues applicable to it and no undisputed amounts
payable were outstanding as at March 31, 2015 for a period of more than
six months from the date they became payable.
(b) According to the information and explanations given to us, there
are no dues on income-tax, Provident fund, Wealth tax, Service tax and
other material statutory dues which have not been deposited with the
appropriate authorities on account of any dispute.
(c) There are no amounts which are required to be transferred to
investor education and protection fund in accordance with the relevant
provisions of the Companies Act,1956 (1 of 1956) and rules made
thereunder.
8 The Company neither has accumulated losses at the end of the
financial year nor has incurred cash losses during the year and in the
immediately preceding financial year.
9 Based on our audit procedures and on the information and explanations
given by the management, the Company has not defaulted in repayment of
dues to any financial institution or bank. The Company did not have any
outstanding debentures or any outstanding loans from financial
institutions during the year.
10 On the basis of information and explanations given to us, the
Company has not given any guarantee for loans, taken by others from
banks or financial institutions.
11 In our opinion and according to the information and explanations
given to us, on an overall basis, the term loans have been applied for
the purposes for which they were obtained.
12 According to the information and explanations given to us, no fraud
on or by the Company, has been noticed or reported during the year.
FOR A.R.PAI & CO.
CHARTERED ACCOUNTANTS
[Firm Registration No.002519S]
Sd/-
Bangalore A.R.PAI
29-May-15 [M. No. 023139] PROPRIETOR
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