| We have audited the accompanying standalone financial statements of
PARSHWANATH CORPORATION LIMITED ("the Company"), which comprise the
Balance Sheet as at March 31, 2015, the Statement of Profit and Loss,
the Cash Flow Statement for the year then ended on that date and a
summary of the significant accounting policies and other explanatory
information.
Management's Responsibility for the Standalone Financial Statements
The Company's Board of Directors is responsible for the matters stated
in Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these standalone financial statements that give a
true and fair view of the financial position, financial performance and
cash flows 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 standalone
financial statements based on our audit.
We have taken into account the provisions of the Act, the accounting
and auditing standards and matters which are required to be included in
the audit report under the provisions of the Act and the Rules made
thereunder.
We conducted our audit in accordance with the Standards on Auditing
specified under Section 143(10) of the Act. Those Standards require
that we comply with ethical requirements and 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 the disclosures in the financial statements. The
procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal financial control relevant
to the Company's preparation of the financial statements that give a
true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing
an opinion on whether the Company has in place an adequate internal
financial controls system over financial reporting and the operating
effectiveness of such controls. An audit also includes evaluating the
appropriateness of the accounting policies used and the reasonableness
of the accounting estimates made by the Company's Directors, 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 the standalone
financial statements.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the aforesaid standalone 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, of the state of affairs of the Company as
at March 31, 2015, and its profit and its cash flows for the year ended
on that date.
Report on Other Legal and Regulatory Requirements
As required by the Companies (Auditor's Report) Order, 2015 ("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 a
statement on the matters specified in paragraphs 3 and 4 of the Order.
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
purposes 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, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this Report are in agreement with the
books of account.
(d) In our opinion, the aforesaid standalone financial statements
comply with the Accounting Standards specified under Section 133 of the
Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.
(e) On the basis of the written representations received from the
directors as on March 31, 2015 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 Section 164 (2) of the
Act.
(f) With respect to the other matters to be included in the Auditor's
Report in accordance with Rule 11 of the Companies (Audit and Auditors)
Rules, 2014, in our opinion and 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
financial position in its financial statements - Refer Note 15 to the
financial statements;
(ii) The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losses;
(iii) There were no amounts which were required to be transferred to
the Investor Education and Protection Fund by the Company.
ANNEXURE TO INDEPENDENT AUDITOR'S REPORT
(Referred to in paragraph 1 under "Report on Other Legal and Regulatory
Requirements" of our report of even date)
1. In respect of fixed assets:
a. The Company has maintained proper records showing full particulars,
including quantitative details and situation of fixed assets.
b. The fixed assets have been physically verified by the management
once in a year which we consider reasonable having regard to the size
of the Company and the nature of its assets. According to the
information and explanations given to us, no material discrepancies
were noticed on such verification.
2. In respect of inventories:
The company is involved in the business of housing finance and
construction and development of housing projects. Therefore, the
provisions of clause 3 (ii) of the Companies (Auditor's Report) Order,
2015 are not applicable to the company.
3. In respect of loans granted to parties covered in the register
maintained u/s 189 of the Act:
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 Act. Therefore, the provisions of Clause 3
(iii) [(a) and (b)] of the said Order are not applicable to the
Company.
4. In respect of internal controls
In our opinion, and according to the information and explanations given
to us, there is an adequate internal control system commensurate with
the size of the Company and the nature of its business for the purchase
of inventory and fixed assets and for the sale of goods and services.
We have not observed any major weakness in the internal control system
during the course of the audit.
5. In respect of deposits
The Company has not accepted any deposits.
6. In respect of maintenance of cost records
The Central Government has not prescribed the maintenance of cost
records under section 148(1) of the Act, for any of the activities
carried out by the Company.
7. In respect of statutory dues
a. According to the information and explanations given to us and the
records of the Company examined by us, in our opinion, the Company is
regular in depositing the undisputed statutory dues, including income
tax, sales tax, wealth tax, service tax, value added tax, cess and
other material statutory dues, as applicable, with appropriate
authorities. As explained to us, the Company did not have any dues on
account of duty of excise, provident fund, employees' state insurance
and duty of customs.
b. According to the information and explanations given to us and the
records of the Company examined by us, in our opinion, no undisputed
amounts payable as applicable were in arrears as at March 31, 2015 for
a period of more than six months from the date they became payable.
c. According to the information and explanations given to us and the
records of the Company examined by us, there are no dues of sales tax,
wealth tax, service tax, value added tax and cess which have not been
deposited on account of any dispute.
The particulars of dues of income tax as at March 31, 2015 which have
not been deposited on account of a dispute, are as follows:
Period to which
Name of statute Nature of dues Rs. in lacs the amount
relates
Income Tax Act 9.11 F. Y. 2001 - 02
1961
57.03 F. Y. 2003 - 04
Income Tax 8.34 F. Y. 2004 - 05
5.75 F. Y. 2010 - 11
Name of statute Forum where the
dispute is
pending
Income Tax Act
1961
High Court
d. Therewere no amounts which were required to be transferred to the
Investor Education and Protection Fund by the Company in accordance
with the relevant provisio Assessing Officerns of the Companies Act, 1956 (1 of 1956) and
rules made thereunder.
8. In respect of accumulated losses and cash losses
The Company has no accumulated losses at the end of the financial year.
It has not incurred cash losses in the financial year under report;
however, there was cash loss in the immediately preceding financial
year.
9. In respect of dues to financial institutions / banks / debentures
The Company did not have any outstanding dues to financial
institutions, banks or debenture holders during the year.
10. In respect of guarantee given for loans taken by others
In our opinion and according to the information and the explanations
given to us, the Company has not given any guarantee for loans taken by
others from banks or financial institutions.
11. In respect of application of term loans
The Company did not have any term loans outstanding during the year.
12. In respect of fraud
According to the information and explanations given to us, no material
fraud on or by the Company has been noticed or reported during the
course of our audit.
For Manubhai & Shah
Chartered Accountants
ICAI Firm Registration No. 106041W
Place: Ahmedabad
Date: May 26, 2015 (K. B. Solanki)
Partner
Membership No.110299 |