| We have audited the accompanying financial statements of QUANTUM
BUILD-TECH LIMITED ("the Company"), which comprise the Balance Sheet as
at 31st March 2015, the Statement of Profit and Loss, the Cash Flow
Statement for the year then ended, and a summary of 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 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 the 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 the 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 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 hue 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, to the extent applicable.
We conducted our audit in accordance with the Standards on Auditing
specified under section 143(10) of the Act and other applicable
authoritative pronouncements 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 misstatements.
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 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 control
system over financial reporting and the operating effectiveness of such
controls. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting
estimates made by the 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 on the financial
statements.
i) Attention is invited to Note No.3.1.1 to Notes forming part of the
Financial Statements regarding non-provision of the dividend on 13%
cumulative redeemable preference shares amounting to Rs, 26,00,000/-for
the year and Cumulative dividend amounting to R$. 2,28,08,763/-.
ii) Attention is invited to Note No.3.1.1 to Notes forming part of the
Financial Statements regarding the redemption of 13% Cumulative
Redeemable Preference Shares, The Company has defaulted in redeeming
the said preference shares to the extent of Rs, 2,00,00,000/- due on
22th December, 2008.
iii) Attention is invited to Note 3.2.2 to Notes forming part of the
Financial Statements regarding winding up petition filed by preference
shareholders holding 2,00,000 preference shares for non redemption of
preference shares.
Opinion
Except in respect of matters as stated in points (i), (ii) and (in)
above, in our opinion and to the best of our information and according
to the explanations given to us, the aforesaid 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 31st March, 2015 and its Loss and its 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 and on the basis of such
checks of the books and records of the Company as we considered
appropriate and according to the information and explanations given to
us, we give in the Annexure a statement on the matters specified in
paragraphs 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 all the information and explanations
which to the best of our knowledge and belief were necessary for the
purposes of our audit.
b. hi 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 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. On the basis of written representations received from the directors
as on 31st March, 2015 and ta;ken on record by the Board of Directors,
none of the directors is disqualified as on 31st March, 2015, from
being appointed as a director in terms of Section 16'4(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 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 as at
31st March, 2015 on its financial positions in its financial statements
as referred to in note 3/1.1, 51, 5.2, 6.1,13.1, and 22(b) to the
financial statements.
ii. The Company has made provision, as required under the applicable
law or accounting standards, for material foreseeable losses, if any,
on long term contracts including derivative contracts.
iii. There were no amounts which required to be transferred to the
Investor Education and Protection Fund by the Company during the year
ended 31st March, 2015.
The Annexure referred to in the Independent Auditors' Report of even
date on the Financial Statements to the Members of Quantum Build-Tech
Limited for the year ended 31st March 2015. We report that:
i. In respect of its fixed assets:
a) The Company has a regular program of physical verification of its
fixed assets by which all fixed assets are verified in a phased manner.
In our opinion the periodicity of physical verification is 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.
ii. In respect of Inventories:
a) As explained to us, the inventories have been physically verified
during the year by the management at reasonable intervals.
b) In our opinion and according to the information and explanations
given to us the procedures of physical verification of inventories
followed by the management were reasonable and adequate in relation to
the size of the company and nature of its business.
c) In our opinion and according to the information and explanations
given to us the Company has maintained proper records of its
inventories and no material discrepancies were noticed on physical
verification.
iii. According to the information and explanations given to us, 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 2013. Hence we have not reported on the
related matters of this clause and sub-clauses.
iv. 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 with regard
to purchase of inventory and fixed assets and with regard to sale of
goods and services. We have not observed any major weakness in the
internal control system during the course of the audit.
v. According to the information and explanations given to us, the
Company has not accepted any deposits from the public.
vi. We have broadly reviewed the cost records maintained by the Company
pursuant to the rules prescribed by the Central Government of India
under Section 148(1) of the Companies Act 2013 and are of the opinion
that prima facie the prescribed cost records have been made and
maintained. We have, however, not made a detailed examination of œhe
cost records with a view to determine whether they are accurate or
complete.
vii According to the information and explanations given to us in
respect of statutory dues:
i. The Company is not regular in depositing undisputed statutory dues
with appropriate authorities 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 applicable to it
ii. According to the information and explanations given to us, no
undisputed amounts payable in respect of income tax, sales tax, wealth
tax, duty of customs, duty of excise, value added tax or cess were in
arrears as at 31st March 2015 for a period more than six months from
the, date they became payable except Service tax Rs.69,436/-.
viii. In our opinion, there are no amounts required to be transferred
to the investor Education and Protection fund by the Company. ix. The
Company has accumulated losses at the end of the financial year and it
has incurred cash loss during the year covered by audit and not in the
immediately preceding financial year.
x. In our opinion and according to the information and explanations
given to us, the company has defaulted in repayment of dues to any
financial institution or bank or debenture holders, as applicable, as
at the Balance sheet date.
No Name of the Bank Principal Interest
1 Axis Bank Limited 1,50,00,000 86,31,895
2 PNB Housing Finance Limited 2,00,00,000 90,69,435
3 I Axis Bank Limited 50,00,000 14,51,046
xi. In our opinion and according to the information and explanations
given to us, the Company has not given any guarantee for loans taken by
others from bank or financial institutions.
xii.In our opinion, and according to the information and explanations
given to us, during the year company not raised any fresh term loans.
xiii. To the best of our knowledge and according to the information and
explanations given to us, no fraud by the Company and no material fraud
on the Company has been noticed or reported during the year.
Place: Hyderabad FOR RAMBABU & Co.,
Date: 30-05-2015 Chartered Accountants
FRN: 002976S
GVL Prasad
Partner
M.No.026548 |