| We have audited the accompanying financial statements of M/s Global
Land Masters Corporation Limited" (formerly known as M/s Bhoomi
Infrastructures Corporation Limited), which comprise the Balance Sheet
as at March 31, 2014, and the Statement of Profit and Loss and cash
flow statement for the year ended, and a summary of significant
accounting policies and other explanatory information.
Management's Responsibility for the financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position and
financial performance of the Company in accordance with the Accounting
Standards referred to in sub-section (3C) of section 211 of the
Companies Act, 1956 ("the Act") read with the general Circular 15/2013
dated 13th September2013 of the ministry of corporate affairs in the
respect of section 133 of the companies Act 2013. This responsibility
includes the design, implementation and maintenance of internal control
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 conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. 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 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 control relevant to the Company's preparation and
fair presentation 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 entity's
internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of the accounting
estimates made by management, 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.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, the 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:
Subject to,
1. The Company has shown long term borrowings of Rs 14.57 Crores (refer
to Note 2.3) which includes:
(i) Advances and security deposits from prospective buyers of flats. In
the absence of agreements and necessary approval from the respective
authorities, the liability against the said booking is not
ascertainable.
(ii) The company has shown Rs 3.16 Crores as Non-current Investments
(Note No. 2.8) in the subsidiary companies and partnership firms and
also other long term loans and advances Rs. 13.10 Crores (refer Note
No. 2.9) for which no supporting evidences have been made available,
There is nothing in the record to show by the management that these
advances are recoverable. The Company has not made any provision
against these advances.
2. The Company's status as a going concern is subject to note no. 2.26
a) in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b) in the case of the Profit and Loss Account, of the Loss for the year
ended on that date; and
c) in the case of the cash flow statement, of the cash flow for the
year ended on that
Report on Other Legal & Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of sub-
section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a) we have 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 appears from our examination of those
books.
c) The Balance Sheet and Statement of Profit and Loss dealt with by
this Report are in agreement with the books of account.
d) in our opinion, the Balance Sheet , Statement of Profit and Loss and
the cash flow statement comply with the Accounting Standards referred
to in sub-section (3c) of section 211 of the Companies Act 1956 read
with the General Circular 15/2013 dated 13 September 2013 of the
Ministry of Corporate Affairs in respect of section 133 of the
companies Act, 2013: and
e) On the basis of written representations received from the directors
as on March 31, 2014, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2014, from being
appointed as a director in terms of clause (g) of sub-section (1) of
section 274 of the Companies Act, 1956.
ANNEXURE REFERRED TO IN PARAGRAPH 3 OF OUR REPORT OF EVEN DATE OF THE
ACCOUNTS OF M/s Global Land Masters Corporation Limited" (formerly
known as M/s Bhoomi Infrastructures Corporation Limited) FOR THE YEAR
ENDED ON 31st March, 2014.
1. The Company has purchased some fixed assets during the year and they
have been physically verified by the management and no discrepancy
found. The company has also maintained proper records of the Fixed
Assets. No assets have been disposed off during the year.
2. The Company has carried out the physical verification of inventory
during reasonable intervals. Company is maintaining proper records of
inventory and has not found any discrepancy during the physical
verification.
3. a) The Company has granted a sum of Rs 99,60,805/- as interest free
advances to M/s Vasant Vihar Land project (P.) Ltd., covered in the
register maintained under section 301 of the Companies Act, 1956 during
the previous year. In our opinion, the rate of interest and other terms
and conditions of such loans are prime facie, prejudicial to the
interest of the Company.
b) Since the loans have been granted on demand basis, there is no
overdue amount.
c) The Company has taken interest free unsecured loan as follows.
Name Maximum Balance Outstanding at the end
of the year
Inox Engineering Pvt. Ltd. Rs.25,98,000 Rs. 25,98,000
Loan from Mr.S.S.Beswal (M.D.) Rs. 13,227,500 Rs. 13,227,500
Bhoomi Infrastuctures Co. Rs. 36,45,000 Rs. 36,45,000
The repayment of loan is on mutually agreed basis.
d) The terms and conditions on the basis of which above loan is taken,
is not prejudicial to the interest of the Company. Since it is interest
free loan and repayment on mutual agreed basis. There is no overdue
interest or payment of principal amount.
4. In our opinion and according to the information and explanations
given to us the Company has an internal control procedures commensurate
with the size of the Company and nature of its business, however, the
same are required to be strengthened.
5. a) According to information and explanation given to us, we are of
the opinion that the transactions that need to be entered in the
register maintained under section 301 of the company Act 1956, have
been so entered
6. To the best of our information and explanation given to us, the
Company has not accepted any deposits during the year from the public
within the meaning of the provisions of section 58A and 58AA of The
Companies Act, 1956 and the rules made there under.
7. The Company has an internal audit system. The management has
explained that the volume of transactions is very small and system
shall be introduced when the volume of business is increased.
8. To the best of our knowledge and according to the information and
explanation given to us, the Central Government has not prescribed
maintenance of cost records U/S 209(1) (d) of the Companies Act 1956 in
respect of any products of any Company.
9. a) The Company, is generally regular in depositing undisputed
statutory dues including P.F investor Education and protection Fund,
Employees state insurance Income Tax , Sales Tax, wealth tax , Custom
Duties, Excises Duties and there are no outstanding dues as on
31-3-2014, for a year exceeding six months from the date , they become
payable except in case of TDS of Rs. 160,998/- pertaining to years
2012-13 & 2013-14 not yet deposited.
Further, since the Central Government has till date not prescribed the
amount of cess payable under section 441A of the Companies Act, 1956
and we are not in position to comment upon the regularity or otherwise
of the company in depositing the same.
b) There are no disputed amounts on account of the above statutory dues
as on 31-3-2014
10. In our opinion, accumulated losses of the company at the end of
financial are more then fifty percentage of it net worth. Further the
Company has incurred a sum of Rs. 25,68,374/- as cash loss during the
financial year covered by our audit and cash loss of Rs. 19,09,485/-
immediately preceding the financial year.
11. The company has not defaulted in repayment of dues to a financial
institution, bank or debenture holders.
12. In our opinion and according to the information and explanation
given to us the Company has not issued any debentures.
13. According to the information and explanation given to us the
Company has not granted loans and advances on the basis of security by
way of pledge of shares, debentures or other securities.
14. The Company is not a chit fund or a Nidhi/ Mutual benefit Funds/
society. Therefore clause 4 (xiii) of the Companies (Auditors Report)
order 2003 are not applicable to the Company.
15. The Company is not dealing in or trading in shares, securities,
debentures, or other investments and hence, requirement of paragraph 4
(xiv) of the Companies (Auditors order Report) are not applicable to
the Company.
16. According to the information and explanation given to us, the
Company has not given guarantee for loans taken by related parties from
the Banks and Financial Institutions.
17. The Company has not taken any Term Loan during the year.
18. On the basis of information and explanation given to us and on the
basis of overall examination of the Balance Sheet of the company, no
fund raised for short-term basis have been utilized for long term
investment.
19. The Company has not made any preferential allotment of shares to
any party or company covered in the register maintained under Section
301 of the Companies Act, 1956.
20. The Company has not raised any money by Public issue, during the
year.
21. To the best of our knowledge and belief and according to the
information and explanations given to us, no fraud on or by the Company
was noticed or reported during the year.
For S. Agarwal & Co.
Chartered Accountants
(REG. NO 000808N)
Sd/-
Subhash Kapoor
(Partner)
M. No. 012781
Place: New Delhi
Date: 26.07.2014
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