We have audited the accompanying financial statements of M/s. B & B
Realty Ltd, ("the of Company")which comprise the Balance Sheet as at 31
March, 2015, the Statement of Profit and Loss, the Cash Flow Statement
for the year then ended, and a summary of the 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 Section 134(5) of the Companies Act, 2013 ("the Act") with respect
to the preparation of these 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 of 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 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. 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 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 st
principles generally accepted in India, of the state of affairs of the
Company as at 31 March, 2015, and its profit/loss and its cash flows
for the year ended on that date.
Emphasis of Matters
Members reference is invited to para R note no. li relating to:
a) Company not obtaining confirmation of balances from sundry
debtors/creditors.
b) Company not making necessary provisions towards bad and doubtful
debts which are outstanding more than five years.
However our opinion herein above, though not modified is subject to
above observations.
Report on Other Legal and Regulatory Requirements
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 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) The going concern matter described in sub-paragraph (b) under the
Emphasis of Matters paragraph above, in our opinion, may have an
adverse effect on the functioning of the Company.
(f) On the basis of the written representations received from the
directors as on 31 March, 2015 taken on record by the Board of
Directors, none of the directors is st disqualified as on 31 March,
2015 from being appointed as a director in terms of Section 164 (2) of
the Act.
(g) With respect to the adequacy of the internal financial controls
over financial reporting of the Company and the operating effectiveness
of such controls, refer to our separate Report in "Annexure A".
(h) 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 does not have any pending litigations which would
impact its financial position
ii. The Company did not have any long-term contracts including
derivative contracts for which there were any material foreseeable
losse]
iii. There has been no delay in transferring amounts, required to be
transferred, to the Investor Education and Protection Fund by the
Company
Annexure to the Auditors' Report
The Annexure referred to in our report to the members of B & B Realty
Ltd. for the year Ended on 31-03-02015.
I report that:
(i) (a) whether the company is maintaining proper records showing full
particulars, including quantitative details and situation of fixed
assets; Yes
(b) whether these fixed assets have been physically verified by the
management at reasonable intervals; whether any material discrepancies
were noticed on such verification and if so, whether the same have been
properly dealt with in the books of account; Company has written off
the value of it fixed assets due to obsolescence and having no useful
life.
(ii) (a) whether physical verification of inventory has been conducted
at reasonable intervals by the management; Yes
(b) are the procedures of physical verification of inventory followed
by the management reasonable and adequate in relation to the size of
the company and the nature of its business. If not, the inadequacies in
such procedures should be reported; Yes
(c) whether the company is maintaining proper records of inventory and
whether any material discrepancies were noticed on physical
verification and if so, whether the same have been properly dealt with
in the books of account; Yes
(iii) (iii) whether the company has granted any loans, secured or
unsecured to companies, firms or other parties covered in the register
maintained under section 189 of the Companies Act. If so, Yes
(a) whether receipt ot the principal amount and interest arc also
regular; and Yes
(b) if overdue amount is more than rupees one lakh, whether reasonable
steps have been taken by the company for recovery of the principal and
interest; Yes
(iv) is there 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.
Whether there is a continuing failure to correct major weaknesses in
internal control system. Yes
(v) in case the company has accepted deposits, whether the directives
issued by the Reserve Bank of India and the provisions of sections 73
to 76 or any other relevant provisions of the Companies Act and the
rules framed there under, where applicable, have been complied with? 11
not, the nature of contraventions should be stated; If an order has
been passed by Company Law Board or National Company Law Tribunal or
Reserve Bank of India or any court or any other tribunal, whether the
same has been complied with or not? Company has not accepted any
deposit during the year.
(vi) where maintenance of cost records has been specified by theCentral
Government under sub- section (1) of section 148 of the Companies Act,
whether such accounts and records have been made and maintained; No
(vii) (a) is the company regular in depositing undisputed statutory
dues including provident fund, employees' state insurance, income-tax,
sales- tax, wealth tax, service tax, duty of customs, duty of excise,
value added tax, cess and any other statutory dues with the appropriate
authorities and if not, the extent of the arrears of outstanding
statutory dues as at the last day of the financial year concerned for a
period of more than six months from the date they became payable, shall
be indicated by the auditor. Yes
(b) in case dues of income tax or sales tax or wealth tax or service
tax or duty of customs or duty of excise or value added tax or cess
have not been deposited on account of any dispute, then the amounts
involved and the forum where dispute is pending shall be mentioned. (A
mere representation to the concerned Department shall not constitute a
dispute). No
(c) whether the amount 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 has been
transferred to such fund within time. Not applicable
(viii) whether in case of a company which has been registered for a
period not less than five years, its accumulated losses at the end of
the financial year are not less than fifty per cent of its net worth
and whether it has incurred cash losses in such financial year and in
the immediately preceding financial year; Not applicable
(ix) whether the company has defaulted in repayment of dues to a
financial institution or bank or debenture holders'? If yes, the period
and amount of default to be reported; No
(x) whether the company has given any guarantee for loans taken by
others from bank or financial institutions, the terms and conditions
whereof arc prejudicial to the interest of the company; No
(xi) whether term loans were applied for the purpose for which the
loans were obtained; Not applicable
(xii) whether any fraud on or by the company has been noticed or
reported during the year; If yes, the nature and the amount involved is
to be _ indicated. No.
T.Srinivasa & Co. C
Chartered Accountants
( Tsrinivasa)
Proprietor
M.No.024213
Date -11/05/2015
Place- Bangalore
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