| We have audited the accompanying standalone financial statements of
Popular Estate Management Limited ('the Company'), which compose the
balance sheet as at 31st March 2015, the statement of profit and loss
and the cash flow statement for the year then ended, and a summary of
signficant 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 and presentation 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 Section133 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 anti detecting frauds and other irregularibles;
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 cm the 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
there under.
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 cm 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,
a) In the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2015;
h) In the case of the Profit and Loss Account, of the profit for the
year ended on that date; and
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 ("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 the 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 ail 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 representation received from the
directors as on March 31, 2015 taken on record by the Board of
Directors, none of the Directors are disqualified as on March 31, 2015
from being appointed as a Director In terms of Sub-section 2 of Section
164 of the Act.
(f) With respect to the other matters to be included in the Auditors
Report in accordance with Rule11 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 Point No. 7 of
Notes to 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 that were nequined to be transferred to the
Investor Education and Protection Fund by the company during the year.
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT
Referred to in Paragraph 1 of our report on Other Legal and Regularity
Requirements of even date on the accounts of Popular Estate Management
Limited for the year ended on March 31, 2015.
1) In respect of its fixed assets;
(a) The company has generally maintained proper records showing full
particulars including quantitative details and situation of fixed
assets on the basis of available information.
(b) As explained to us, the fixed assets have been physically verified
by the management at reasonable Intervals during the year, which in our
opinion is reasonable, having regard to the size of the Company and
nature of its assets. No material discrepancies were noticed on such
physical verification.
(c) In our opinion, the company has not disposed off substantial part
of fixed assets during the year and the going concern status of the
Company is not affected.
2} In respect of its Inventories:
(a) As explained to us, the physical verification of the inventory has
been conducted by the management at reasonable intervals during the
year,
(b) In our opinion and according to the information and explanations
given to us the procedures of the 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) The company has maintained proper records of mventory. As explained
to us, there was no material discrepancies notices on physical
verification of inventory as com pored to the book records,
3) 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.
4) in our opinion and according to the information and explanations
given to us, the company has an adequate internal control system
commensurate with its size and the nature of its business with regards
to purchase of fixed assets and sale of services, The activities of the
Company do not Involve purchase of Inventory and the sale of goods. We
have not observed any major weakness In the 'internal control system
during the course of the audit.
5) The Company has not accepted any deposits From the public in
accordance with the provisions of section 73 to 76 of the Act and the
rules framed there under.
No order has been passed by the Company Law Board or National Company
Law Tribunal or Reserve Bank of India or any court or any other
tribunal,
6) As informed to us, the Central Government has not prescribed the
maintenance of cost records under section 148 (1) of the Companies Act,
2013.
7) In respect of statutory dues:
(a) According to the Information and explanations given to us and on
the basis of our examinations of the books of account, the Company has
been regular In depositing undisputed amounts with the appropriate
authorities In respect of Statutory duos Including Provident Fund,
Investor Education and Protection Fund, Employees' State Insurance,
Income tax, Sales tax, Wealth Tax, Service tax, Custom Duty, Excise
Duty, Cess and any other statutory dues, wherever applicable to it.
(b) Further as Informed to us, there are no undisputed dues payable for
a period of more than six months as at 31st March 2015, from the date
they became payable.
(c) According to the Information and explanation given to us, there are
no dues of sales fax, customs duty, wealth tax, Service tax, excise
duty and cess, which have hot been deposited on account of any dispute
except Income Tax as per details given hereunder:
Nature Nature Disputed Amt,
of of dues Amount deposited
Statutes (Rs. In under
lacs) dispute
(Rs. In
lacs)
Income Income 227.84 NIL
Tax Act Tax
Income Income 115.94 36.15
Tax Act Tax
Income Income 132.00 NIL
Tax Act Tax
Penalty
Income Income 4.98 Nil
Tax Act Tax
Income Income 782.14 NIL
Tex Act Tex
Nature Period to Forum where
of which the dispute Is
Statutes amount pending
relates
Financial
year)
Income 2007-08 CJT (APPEALS)
Tax Act
Income 2008-09 STAT
Tax Act
Income 2008-09 CIT (APPEALS)
Tax Act
Income 2010-11 CIT (APPEALS)
Tax Act
Income 201 I-12 CIT (APPEALS)
Tex Act
8) The company does not have any accumulated losses at the end of the
financial year. The Company has not incurred cash losses in the
financial year and In the immediately preceding financial year.
9) According to the Information and explanations given to us, the
company is generally regular in repayment of dues to a financial
institution and bank. The company has not issued any debentures.
10) According to the information and explanations given to us, the
Company has not given any guarantee for loans taken by others from any
bank or financial institution.
11) The Company did not raise any term loan during the year. The term
loans which wore raised in earlier years and are outstanding as at year
end were used in earlier year for the purpose for which they were taken.
12) In our opinion and according to the Information end explanations
given to us, no fraud on or by the Company has been noticed or reported
during the year, that causes the financial statements to be materially
misstated.
Date: 27-05-2015 For Patel &Jesalpura
Place: Ahmedabad Chartered Accountants
FRNo: 120802W
CA. Ashok P. Patel
Partner
M. No. 040482
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