| We have audited the accompanying financial statements of Dugar Housing
Developments Limited ("the Company"), which comprise the Balance Sheet
as at March 31,2014, and 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 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"). 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.
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. 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.
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:
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 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.
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, 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 Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
subsection (3C) of section 211 of the Companies Act, 1956;
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.
f) Since the Central Government has not issued any notification as to
the rate at which the cess is to be paid under section 441A of the
Companies Act, 1956 nor has it issued any Rules under the said section,
prescribing the manner in which such cess is to be paid, no cess is due
and payable by the Company.
The Annexure referred to in paragraph 1 of the Our Report of even date
to the members of Dugar Housing Developments Limited on the accounts of
the company for the year ended 31st March, 2014.
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of the Fixed
Assets.
(b) All the assets have not been physically verified by the management
during the year but there is a regular program of physical
verification, which in our opinion, is reasonable, having regard to the
size of the Company and the nature of its assets. No material
discrepancies have been noticed on such verification.
(c) During the year, the Company has not disposed off a major part of
the plant and machinery.
(ii) (a) The Company does not carry any Inventory in its Books of
Account for the year ended 31st March 2014.
(iii) (a) The Company had not taken any loans from other companies
covered in the register maintained under section 301 of the Companies
Act, 1956.
(iv) 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 purchases of inventory, fixed assets and with
regard to the sale of goods. During the course of our audit, we have
not observed any continuing failure to correct major weaknesses in
internal controls.
(v) (a) According to the information and explanations given to us, we
are of the opinion that the transactions that need to be entered into
the register maintained under section 301 of the Companies Act, 1956
have been so entered.
b) In our opinion and according to the information and explanations
given to us, the transactions made in pursuance of contracts or
arrangements entered in the register maintained under section 301 of
the Companies Act, 1956 and exceeding the value rupees five lakhs in
respect of any party during the year have been made at prices which are
reasonable having regard to prevailing market prices at the relevant
time.
(vi) In our opinion and according to the information and explanations
given to us, the company has not accepted any Deposits from the Public
and hence the provisions of sections 58A and 58AA of the Companies Act,
1956 and the Companies (Acceptance of Deposits) Rules, 1975 are not
applicable.
(vii) In our opinion, the Company has an internal audit system
commensurate with the size and nature of its business.
(viii) We have reviewed the rules prescribed by the Central Government
for maintenance of Cost records under Section 209 (1) (d) of the
Companies Act, in respect of the Turnover of the Company being less
than the prescribed limits and are of the opinion that prima facie the
said rules are not applicable to this Company.
(ix) (a) The Company is regular in depositing with appropriate
authorities undisputed statutory dues including Provident
Fund, Income Tax, Customs Duty and other material statutory dues
applicable to it.
(b) According to the information and explanations given to us, no
undisputed amounts payable in respect of, customs duty, were in
arrears, as at 31st March, 2014 for a period of more than six months
from the date they became payable except matters that are currently
agitated at various Appellate levels.
(c) According to the information and explanations given to us, a sum of
Rs.7.00 lakhs (Rs.Nil) has been deposited with the Income Tax
Department on account of a dispute pertaining to the A.Y. 1996-97 and
A.Y.1997-98 without prejudice to the rights of the Company in agitating
the case before the Courts of Law.
(x) The company has not incurred cash loss during the financial year
covered by our audit and the immediately preceding financial year.
(xi) In our opinion and according to the information and explanations
given to us, the Company has not borrowed monies from any financial
institution, banks or debenture holders.
(xii) We are of the opinion that the Company has not granted any loans
on the basis of security by way of pledge of shares, debentures and
other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi/mutual
benefit fund/society. Therefore, the provisions of clause 4(xiii) of
the Companies (Auditor's Report) Order, 2003 is not applicable to the
Company.
(xiv) In our opinion, the Company is not dealing or trading in shares,
securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor's Report) Order,
2003 is not applicable to the Company.
(xv) According to the information and explanations given to us, the
Company has not given guarantees for loans taken by others from banks
or financial institutions.
(xvi) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that the no funds raised on short-term basis have been used for
long-term investment. No long-term funds have been used to finance
short-term assets except permanent working capital.
(xvii) According to the information and explanations given to us the
Company has not made any preferential allotment of shares to parties
and companies covered in the register maintained under section 301 of
the Act.
(xviii) According to the information and explanations given to us,
during the period covered by our audit report, the company has not
issued any debentures.
(xix) According to the information and explanations given to us, no
fraud on or by the Company has been noticed or reported during the
course of our audit.
For M.Krishnakumar & Associates,
Chartered Accountants
Place : CHENNAI
Date : 27.05.2014
M.Krishna Kumar B.Sc FCA
Proprietor.
M.No.203929 | 