| We have audited the accompanying financial statements of MAZDA
PROPERTIES LIMITED ("the Company"), which comprise the Balance Sheet as
at 31st March , 2014, the Statement of Profit and Loss and 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 Management is responsible for 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 Standards referred to in Section 211(3C)
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.
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 judgement, 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.
Basis for Qualified Opinion
Attention is invited to Note No. 14(A), which was also the subject
matter of our report similarly qualified in the previous year,
regarding non provision of interest payable to a party Rs.13,45,674/-
for the reasons stated therein which constitutes a departure from the
Accounting Standard (AS) 1 'Disclosure of Accounting Policies" and
Accounting Standard (AS) 9 'Revenue Recognition' referred to in Section
211 (3C) of the Act. If the same is considered, the project expenses
(under Note 9 (c)) as at the year end would have been Rs.87,66,373/- as
against the reported figure of Rs.74,20,699/- (Previous year
Rs.87,22,256/- as against the reported figure of Rs.74,20,699/-) and
Other Current Liabilities (under Note 7) would have been Rs.24,58,620/-
as against the reported figure of Rs.11,12,946/- (Previous year
Rs.22,63,503/- as against the reported figure of Rs.9,61,946/-).
Qualified Opinion
In our opinion and to the best of our information and according to the
explanations given to us, except for the effect of the matter described
in the Basis for Qualified Opinion above, 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 31st March, 2014 and
(b) in the case of the Statement of Profit and Loss, of the loss of the
Company 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. Report on Other Legal and Regulatory
Requirements
1. As required by the Companies (Auditor's Report) Order, 2003 ('the
Order'), 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 under provisions of Section 227 (3) of the Companies
Act, 1956, 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 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 Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement dealt with by this report comply with the
requirements of 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 13-09-2013 of the Ministry of Corporate Affairs
in respect of Section 133 of the Companies Act, 2013.
(e) on the basis of written representations from the Directors as on
31st March, 2014 and taken on record by the Board of Directors, we
report that none of the Directors are disqualified as on 31st March,
2014 from being appointed as Directors in terms of Section 274(1)(g) of
the Companies Act,1956.
ANNEXURE TO THE INDEPENDENT AUDITORS' REPORT
(Referred to in paragraph 1 of under 'Report on Other Legal and
Regulatory Requirements' section of report of even date)
i) The Company does not own any fixed assets. Therefore, requirements
of clauses 4 (i) (a) to 4 (i)(c) of the Order are not applicable.
ii) The Company is engaged in the business of real estate. It does not
hold any physical inventories. Therefore, requirements of clauses 4
(ii) (a) to 4 (ii) (c) of the Order are not applicable.
iii) 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, 1956. Therefore, requirements
of clause 4 (iii) (b) to (iii) (d) of the Order are not applicable.
The Company has taken an interest free loan from two parties covered in
the register maintained under Section 301 of the Companies Act, 1956.
The maximum amount outstanding during the year and the balance at the
year end was Rs.13,12,250/-. In our opinion, the terms and conditions
of the said loan are not prima facie prejudicial to the interest of the
company.
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 fixed assets and Company's real estate business.
Further, on the basis of our examination of the books and records of
the Company, we have neither come across nor have been informed of any
continuing failure to correct major weaknesses in internal control
system.
v) In our opinion and according to the information and explanations
provided by the management, we report that the Company has not entered
into any such contracts and arrangements during the year which needs to
be entered into the register maintained under Section 301 of the
Companies Act, 1956.
vi) The Company has not accepted any deposits from the public within
the meaning of sections 58A, 58AA or any other relevant provisions of
the Companies Act, 1956, where applicable and the Rules framed
thereunder. We are informed that 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 is yet to set up an Internal Audit System.
viii) As informed to us, the maintenance of cost records has not been
prescribed by the Central Government under section 209(1)(d) of the
Companies Act, 1956, in respect of activities carried on by the
Company.
ix) a) In our opinion and according to the information and explanations
given to us and on the basis of our examination of the records of the
Company, the Company has been regular in depositing undisputed
statutory dues, including Provident Fund, Investor Education &
Protection Fund, Employees' State Insurance, Income Tax, Sales Tax,
Wealth Tax, Service-tax, Customs Duty, Excise Duty, Cess and other
material statutory dues with the appropriate authorities, where
applicable.
b) According to the records of the Company and information and
explanations given to us, dues of Income Tax which have not been
deposited on account of disputes and forum where dispute is pending are
as under:
Name of Statute Nature of dues Amount Period to
(in Rs.) which the
amount
relates
Income Tax Act, Income Tax 50,960/- 1990-91
1961
Income Tax Act, Income Tax 79,034/- 1992-93
1961
Income Tax Act, Income Tax 58,705/- 1993-94
1961
Income Tax Act, Income Tax 58,705/- 1994-95
1961
Name of Statute Forum where pending
Income Tax Act, JCIT (Asstt.) Spl.
1961 Range - 2, Surat
(Previously with
ACIT, Central Circle -
30, Central Range - V,
Bombay)
Income Tax Act, JCIT (Asstt.) Spl.
1961 Range - 2, Surat
Income Tax Act, JCIT (Asstt) Spl.
1961 Range - 2, Surat
Income Tax Act, JCIT (Asstt) Spl.
1961 Range - 2, Surat
x) The accumulated losses of the Company are more than fifty percent of
its net worth at the end of its financial year. The Company has
incurred cash loss during the year and also in the immediately
preceding financial year.
xi) The Company has not borrowed any money from any financial
institution or bank or debenture holders. Therefore, requirements of
clause 4 (xi) of the Order are not applicable.
xii) The Company has not granted any 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, nidhi, mutual benefit fund or
society. Therefore, requirements of clauses 4 (xiii) (a) to (xiii) (d)
of the Order are not applicable.
xiv) The Company is not dealing or trading in shares, securities,
debentures and other investments. Therefore, requirements of clause 4
(xiv) of the Order are not applicable.
xv) 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) The Company has not taken any term loan during the year.
xvii) According to the information and explanations given to us and on
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) The Company has not made any preferential allotment of shares to
parties and companies covered in the Register maintained under Section
301 of the Companies Act, 1956. Therefore, requirements of clause 4
(xviii) of the Order are not applicable.
xix) The Company has not raised any funds by way of issue of debentures
during the year. Therefore, requirements of clause 4 (xix) of the
Order are not applicable.
xx) The Company has not raised any money through a public issue during
the year. Therefore, requirement of clause 4 (xx) of the Order are not
applicable.
xxi) 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
has been noticed or reported during the year.
For P.V. DALAL & CO.
(Chartered Accountants)
Firm Regn. No.102049W
Place : Mumbai (PARESH V. DALAL)
Date : 11th June, 2014 Proprietor
Membership No.033355 | 