| We have audited the accompanying financial statements of M/s Raghava
Estates & Properties Limited, which comprise the Balance Sheet as at
31st March, 2014 and Statement of Profit & Loss for the year ended, and
a summary of the significant accounting policies and other explanatory
information.
Management's Responsibility for the Financial Statements
The Company's 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 notified under the Companies Act, 1956, ("the
Act") (which continue to be applicable in respect of Section 133 of the
Company Act, 2013 in terms of General Circular 15/2013 dated September
13, 2013 of the Ministry of Corporate Affairs) and in accordance with
the accounting principles generally accepted in India. 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.
Auditors' 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 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 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 the Company's internal control. An audit also includes
evaluating the appropriateness of the 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.
Opinion
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 Companies Act, 1956 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 31 March, 2014.
(b) in the case of the Statement of Profit and Loss, of the Profit/Loss
of the Company for the year ended on that date; and
(c) in case of the cash flow statement, of the cash flows of the
company for the year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2003 issued
by the Central Government in terms of Section 227(4A) of the Companies
Act, 1956, 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 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 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 and the Statement of Profit and
Loss comply with the Accounting Standards notified under the Act (which
continue to be applicable in respect of Section 133 of the Companies
Act, 2013 in terms of General Circular 15/2013 dated September 13, 2013
of the Ministry of Corporate Affairs).
(e) On the basis of the written representations received from the
directors as on 31 March, 2014 taken on record by the Board of
Directors, none of the directors is disqualified as on 31 March, 2014
from being appointed as a director in terms of Section 274(1)(g) of the
Companies Act, 1956.
Annexure to the Auditors' Report:
Referred to in paragraph 1 under 'Report on Other Legal and Regulatory
Requirements' section of our report of even date.
(i) (a) The Company has maintained proper records showing full
particulars including quantitative details and situation of fixed
assets.
(b) We were informed that all the fixed assets of the Company have been
physically verified by the management during the year at reasonable
intervals and no discrepancies were noticed on such verification.
(c) During the year, the company has not disposed off any part of Plant
& Machinery and affect on the going concern status of the company does
not arise.
(ii) (a) The inventory has been physically verified during the year by
the management. In our opinion, the frequency of verification is
reasonable.
(b) The procedure of physical verification of inventories followed by
the management is reasonable and adequate in relation to the size of
the company and the nature of its business.
(c) The company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material.
(iii) (a) The company has not granted any loans, secured or unsecured
to companies, firms or other parties covered in the register maintained
under Section 301 of the Companies Act. Hence the provisions of Clause
4 (iii) of Companies (Auditors Report) Order, 2003 are not applicable
to the company.
(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 purchase of fixed assets. During the course of
our audit, we have not observed any continuing failure to correct major
weaknesses in internal controls.
(v) According to the information and explanations given to us, we are
of the opinion that there were no contracts or arrangements that need
to be entered into the register maintained under Section 301 of the
Companies Act, 1956 and hence the provisions of clause (v) of the
Companies (Auditors' Report) Order, 2003 are not applicable to the
company.
(vi) In our opinion and according to the information and explanations
given to us, the company has not accepted any deposits from the public.
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.
(vii) The company does not have formal internal audit department but
the company's internal control procedures together with the internal
checks conducted by the management staff during the year can be
considered as an adequate internal audit system commensurate with the
size and nature of its business.
(viii) We have been informed that the Central Government has not
prescribed maintenance of cost records under Section 209(1)(d) of the
Companies Act, 1956.
(ix) (a) The company is regular in depositing with appropriate
authorities undisputed statutory dues including, income tax, sales tax,
wealth tax, service tax, Provident Fund and other material statutory
dues applicable to it. According to the information and explanations
given to us, no undisputed amounts payable in respect of income tax.
Sales tax, provident fund were in arrears, as at 31st March 2014 for a
period of more than six months from the date became payable except
Service tax detailed hereunder (b).
(b) According to the information and explanation given to us, there are
dues of service tax, which have not been deposited on account of
dispute.
Name of the statute Nature of Dues
Finance Act, 1994 Service Tax on Construction of Residential
Complex Service
Finance Act, 1994 Service Tax on Construction of Residential
Complex Service
Finance Act, 1994 Service Tax on Construction of Residential
Complex Service
Finance Act, 1994 Service Tax on Construction of Residential
Complex Service
Finance Act, 1994 Service Tax on Construction of Residential
Complex Service
Finance Act, 1994 Service Tax on Construction of Residential
Complex Service
Finance Act, 1994 Service Tax on Construction of Residential
Complex Service
Finance Act, 1994 Service Tax on Construction of Residential
Complex Service
Name of the statute Amount Period to which Forum where dispute
(Rs) the amount relates is pending
Finance Act, 1994 1567840 2006-07 Appellate Tribunal
Bengaluru
Finance Act, 1994 171345 01.04.07 to Appellate Tribunal
30.04.07 Bengaluru
Finance Act, 1994 3414656 01.05.07 to Appellate Tribunal
31.03.08 Bengaluru
Finance Act, 1994 2981615 01.04.08 to Appellate Tribunal
28.02.09 Bengaluru
Finance Act, 1994 102989 01.03.09 to Appellate Tribunal
31.03.09 Bengaluru
Finance Act, 1994 972255 2009-10 Appellate Tribunal
Bengaluru
Finance Act, 1994 207231 01.04.10 to Appellate Tribunal
30.06.10 Bengaluru
Finance Act, 1994 1085142 01.07.10 to Appellate Tribunal
31.03.11 Bengaluru
(x) In our opinion, there was no accumulated losses and the company has
been deriving cash profits during the financial year covered by our
audit and the immediately preceding financial year. However it has
incurred cash loss during the year immediately preceding the financial
year.
(xi) According to the information and explanations given to us, the
company had delayed installment towards repayment of secured loan
availed from Andhra Pradesh State Financial Corporation. As per the
repayment schedule the company is required to repay the availed loan
amount of Rs.420 lakhs in 50 Equated Monthly Installments of Rs.9.20
lakhs commencing from June, 2008 ending on July, 2012. However an
amount Rs.233.37 lakhs was outstanding as on 31.03.2014 which ought to
have been paid before July, 2012. Hence there was delay of 26 Months in
repayment.
(xii) The company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) 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 are not applicable to the
company.
(xiv) In our opinion, the company is not dealing in or trading in
shares, securities, debentures and other investments. Accordingly, the
provisions of clause 4(xiv) of the Companies (Auditor's Report) Order,
2003 are not applicable to the company.
(xv) 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 banks or financial institutions.
(xvi) In our opinion, the term loans taken by the company have been
applied for the purpose for which they were raised.
(xvii) According to the information and explanations given to us and on
an overall examination of the balance sheet of the company, we report
that no funds raised on short-term basis have been used for long-term
investment.
(xviii) According to the information and explanations given to us, the
company has not made preferential allotment of shares to parties and
companies covered in the register maintained under Section 301 of the
Companies Act, 1956.
(xix) According to the information and explanations given to us, during
the period covered by our audit report, the company has not issued any
debentures.
(xx) In our opinion and according to the information and explanations
given to us, the company has not raised any funds by Public issue
during the year under audit.
(xxi) 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 Suresh And Babu
Chartered Accountants
FRN : 004254S
Place : Vijayawada Sd/-
Date : 05.05.2014 (P. Janardhan)
Partner.
ICAI M. No. 026498 | 