We have audited the accompanying standalone Ind AS
financial statements of PODDAR HOUSING AND
DEVELOPMENT LTD. ("the Company"), which
comprise the standalone Balance Sheet as at 31st March
2024, the standalone Statement of Profit and Loss
(including Other Comprehensive Income), standalone
Statement of Cash Flow and standalone Statement of
Changes in Equity for the year then ended, and notes
to the standalone financial statements, including a
summary of significant accounting policies and other
explanatory information (hereinafter referred to as ''Ind
AS standalone financial statements").
In our opinion and to the best of our information
and according to the explanations given to us, the
aforesaid standalone Ind AS financial statements
give the information required by the Companies Act,
2013 ("the Act") in the manner so required and give a
true and fair view in conformity with the accounting
principles generally accepted in India including Indian
Accounting Standards ('Ind AS') specified under section
133 of the Act, of the state of affairs of the Company
as at 31st March 2024, and its losses including other
comprehensive losses, its cash flows and the changes in
equity for the year ended on that date.
BASIS OF OPINION
W e conducted our audit in accordance with the Standards
on Auditing (SAs) specified under section 143(10) of
the Act. Our responsibilities under those Standards are
further described in the Auditor's Responsibilities for
the Audit of the standalone Financial Statements section
of our report. We are independent of the Company
in accordance with the Code of Ethics issued by the
Institute of Chartered Accountants of India together
with the ethical requirements that are relevant to our
audit of the standalone financial statements under the
provisions of the Act and the Rules thereunder, and
we have fulfilled our other ethical responsibilities in
accordance with these requirements and the Code of
Ethics. We believe that the audit evidence and certified
declaration by the management we have obtained is
sufficient and reasonably appropriate to provide a basis
for our opinion on the standalone financial statements.
EMPHASIS OF MATTER
We wish to draw your attention to Note No 33(i)
specifying NCLT case details wherein Indiabulls
Housing Finance Limited has filed a petition against
Poddar Housing and Development Limited dated
25th June, 2024 having Filing No. 2709138062072024,
Registration No. C.P.(IB)/721/MB/2024 & STCI
Finance Ltd. has filed petition against Poddar Housing
and Development Limited dated 13th February, 2024
having Filing No. 2709138017202024 , Registration No.
C.P.(IB)/109/MB/2024.
We refer to the Note No. 37 (i) of the standalone
Financial Statements wherein the company has asked
for extension in presenting the financial statements and
holding AGM for the year ended 31st March 2024 for
various reasons.
We refer to Note 19, wherein the Company's debentures
are due for redemption as on 11th Feb. 2025 for Rs. 15,000
Lakhs which the company have not paid till the date of
signing the report.
Also refer Note No.19, wherein the Company's
Term loans from HDFC Bank, Aditya Birla Finance
Corporation and STCI are due but not paid and hence
they are also regrouped from Non-Current borrowings
to Current borrowings.
We refer to Note 37(ii), wherein the company's loan
with IndiaBulls Housing Finance Limited of Rs 5,500
Lakhs (principal), accrued interest of Rs. 185.94 Lakhs
& default interest of Rs. 175.90 Lakhs having maturity
on 5th November, 2025 was settled by sale of mortgaged
property valued at Rs. 5,610 Lakhs. The India Bulls
has demanded balance of Rs. 454 Lakhs which is being
contested by the Company. The outstanding demand is
accounted for in the books and remains outstanding as
on 31st March, 2024.
We refer to Note 23 wherein the company has defaulted
on TDS liability to a tune of Rs.319 Lakhs due as on
31st March, 2024 and Provident Fund, PT, ESIC and
Maharashtra Labour Welfare Fund totalling to Rs. 5.05
Lakhs as on 31st March, 2024. Except for TDS all other
statutory dues have been paid as on date of signing of
this report.
We refer to Note 22, wherein Non-payment of employee salaries including payment of left / resigned employees
was observed during the audit period which are specified below:
(Rs. In Lakhs)
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Particulars
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Amount due as on
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31st March, 2024
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Salary Payable (including Full & Final Payment of left employees)
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202.08
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Gratuity Payable for left employees remaining unpaid
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11.26
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Total
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213.34
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We would like to draw your attention to various term loans and their outstanding as on 31st March, 2024:
Poddar Housing and Development Limited
Debt Outstanding as on 31st March, 2024
|
Lender
|
Principal
|
Interest
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Total
|
|
STCI
|
5,960
|
437
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6,397
|
|
HDFC LTD
|
3,797
|
290
|
4,087
|
|
Aditya Birla LAP
|
901
|
98
|
999
|
|
Aditya Birla Badlapur
|
1,135
|
52
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1,187
|
|
HDFC Capital NCD
|
15,000
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12,025
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27,025
|
|
Venkatesh Investment and Trading Company
|
2,500
|
877
|
3,377
|
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IndiaBulls Housing Finance
|
454
|
-
|
454
|
|
Total
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29,747
|
13,779
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43,526
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However as on 31st March 2024, the Company has assessed its financial position, including expected realization
of assets and payment of liabilities including borrowings, and believes that sufficient funds will be available to
pay-off the liabilities through availability of land bank and projects under work in progress to meet its financial
obligations in at least 12 months from the signing of this report.
Our opinion on the statement is not modified in respect of matters stated above.
KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the standalone financial statements of the current period. These matters were addressed in the context of our audit
of the standalone financial statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
We have determined the matters described below to be the key audit matters to be communicated in our report:
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Key audit matter
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How our audit addressed the key audit matter
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Evaluation of Going concern assumption of accounting (as
described in note 37 (iii)) of the standalone Ind AS financial
statements)
The evaluation of the appropriateness of adoption of going
concern assumption for preparation of these financial
statements performed by the management of the Company
is identified as a key audit matter because as at March 31,
2024, the Company had net current assets of Rs (2506) Lakhs.
The Company has prepared future cash flow forecasts which
involves judgement and estimation of key variables and
market conditions including future economic conditions on
account of recoverability of market conditions, global factors
and the prospects of the micro markets in which the company
has projects and land bank.
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Our procedures in relation to evaluation of going concern included the
following:
• Obtained an understanding of the process followed by the
management and tested the internal controls over the liquidity
assessment, compliance with the debt covenants and preparation of
the cash flow forecast, and validation of the assumptions and inputs
used in the model to estimate the future cash flows.
• Tested the inputs and assumptions used by the management in
the cash flow forecast against historical performance, budgets,
economic and industry indicators, publicly available information, the
Company's strategic plans and benchmarking of key market related
conditions.
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The Company is confident that the net cash inflows from
operating activities / selling off land bank / ongoing projects
in conjunction with the available line of credit and normal
cyclical nature of working capital receipts and payment will
provide sufficient liquidity to meet its financial obligation as
they fall due in the following twelve months. Hence, these
financial statements have been prepared adopting the going
concern assumption.
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• Assessing the key assumptions including those pertaining to revenue
and the timing of significant payments in the cash flow forecast.
• Performed sensitivity analysis on key assumptions like market price
of existing land bank and future potential of existing projects to
determine their impact on the projections of future cash flows from
land sale / ongoing projects sales and also on any possible cash outgo
for repayment of existing debt.
• Compared the details of the company's long-term credit facilities to
the supporting documentation.
• Assessed the disclosures made by the Company in this regard.
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Compliance with SA 505 - External Confirmations
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As part of our audit procedures, we sought to obtain external confirmations
for certain balances and transactions, as required by auditing standards.
Despite multiple attempts and the use of alternative procedures where
feasible, we were unable to obtain the necessary external confirmations.
All other reasonable alternatives to gather sufficient appropriate audit
evidence in this regard were exhausted without success. This matter was
of most significance in our audit due to its potential impact on our ability
to obtain audit evidence and form an opinion on the financial statements.
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Compliance with SA 230 - Audit Documentation
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In accordance with SA 230, we had requested bank loan statements till the
date of signing of the report which were not received for the following
debts:
1. STCI
2. HDFC Ltd.
3. Aditya Birla (LAP)
4. Aditya Birla (Badlapur)
5. HDFC Capital Non-Convertible Debentures
6. Venkatesh Investment and Trading Company
Alternative audit procedures were performed and appropriately recorded
to obtain sufficient and appropriate audit evidence. All efforts and
conclusions have been duly documented as part of the audit file.
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As per SA 540, the interest payable on outstanding loans
was evaluated based on management's calculations and loan
terms, due to the absence of lender confirmations.
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The Company has outstanding loans for which bank loan statements were
not provided during the audit due to default in loan repayments. As a
result, we were unable to obtain direct confirmation of loan balances and
interest details from the lenders. So the audit evidence obtained is less
reliable due to absence of lenders confirmation & heavy reliance is made
on Managements estimates and representations. In accordance with our
audit procedures, we verified the calculated interest payable based on the
terms of the loan agreements available and corroborated this calculation
with management which was subsequently certified by the management.
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INFORMATION OTHER THAN THE STANDALONE
FINANCIAL STATEMENTS AND AUDITORS
REPORT THEREON
The Company's Board of Directors is responsible for the
other information. The other information comprises the
information included in the Board's Report including
Annexures to Board's Report, Management Discussion
and Analysis, Corporate Governance and Shareholder's
Information and Business Responsibility Report, but
does not include the standalone financial statements
and our auditor's report thereon.
Our opinion on the standalone financial statements does
not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the standalone financial
statements, our responsibility is to read the other
information and, in doing so, consider whether the other
information is materially inconsistent with the standalone
financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated. If,
based on the work we have performed, we conclude that
there is a material misstatement of this other information,
we are required to report that fact. We have nothing to
report in this regard.
MANAGEMENT'S RESPONSIBILITY FOR THE
STANDALONE FINANCIAL STATEMENTS
The Company's Board of Directors is responsible for
the matters stated in section 134(5) of the Act and as
outlined in SA 200 with respect to the preparation of
these standalone financial statements that give a true
and fair view of the state of affairs(financial position),
profit or loss (financial performance including other
comprehensive income), changes in equity and cash
flows of the Company in accordance with the accounting
principles generally accepted in India, including the
Indian Accounting Standards specified under section
133 of the Act. We note that there was a delay in
preparing the financial statements by the Management,
which affected the timely commencement of our audit
procedures.
This responsibility also includes 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 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 adequate 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 statement that give a true
and fair view and are free from material misstatement,
whether due to fraud or error.
In preparing the standalone financial statements,
management is responsible for assessing the Company's
ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and
using the going concern basis of accounting unless
management either intends to liquidate the Company
or to cease operations, or has no realistic alternative but
to do so.
The Board of Directors are also responsible for
overseeing the Company's financial reporting process.
AUDITOR'S RESPONSIBILITY
Our objectives are to obtain reasonable assurance about
whether the standalone financial statement as a whole
are free from material misstatement, whether due to
fraud or error, and to issue an auditor's report that
includes our opinion. Reasonable assurance is a high
level of assurance but is not a guarantee that an audit
conducted in accordance with SAs will always detect a
material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of
users taken on the basis of these standalone financial
statements.
As part of an audit in accordance with SAs, we exercise
professional judgment and maintain professional
scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement
of the standalone financial statements, whether
due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from
fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional
omissions, misrepresentations or the override of
internal control.
- Obtain an understanding of internal control relevant
to the audit in order to design audit procedures
that are appropriate in the circumstances. Under
Section 143(3)(i) of the Act, we are also responsible
for expressing our opinion on whether the
company has adequate internal financial controls
with reference to standalone financial statements
in place and the operating effectiveness of such
controls.
- Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by management.
- Conclude on the appropriateness of management's
use of the going concern basis of accounting and,
based on the audit evidence obtained, whether
a material uncertainty exists related to events or
conditions that may cast significant doubt on the
Company's ability to continue as a going concern.
If we conclude that a material uncertainty exists,
we are required to draw attention in our auditor's
report to the related disclosures in the standalone
financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions
are based on the audit evidence obtained up to
the date of our auditor's report. However, future
events or conditions may cause the Company to
cease to continue as a going concern.
- Evaluate the overall presentation, structure and
content of the standalone financial statements,
including the disclosures, and whether the
standalone financial statements represent the
underlying transactions and events in a manner
that achieves fair presentation.
Materiality is the magnitude of misstatements in the
standalone financial statements that, individually or in
aggregate, makes it probable that the economic decisions of
a reasonably knowledgeable user of the standalone financial
statements may be influenced. We consider quantitative
materiality and qualitative factors in (i) planning the scope
of our audit work and in evaluating the results of our work;
and (ii) to evaluate the effect of any identified misstatements
in the standalone financial statements.
We communicate with those charged with governance
regarding, among other matters, the planned scope
and timing of the audit and significant audit findings,
including any significant deficiencies in internal control
that we identify during our audit.
We also provide those charged with governance with
a statement that we have complied with relevant
ethical requirements regarding independence, and to
communicate with them all relationships and other
matters that may reasonably be thought to bear on
our independence, and where applicable, related
safeguards.
From the matters communicated with those charged
with governance, we determine those matters that
were of most significance in the audit of the standalone
financial statements of the current period and are
therefore, the key audit matters. We describe these
matters in our auditor's report unless law or regulation
precludes public disclosure about the matter or when,
in extremely rare circumstances, we determine that
a matter should not be communicated in our report
because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest
benefits of such communication.
REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS
1. As required by the Companies (Auditor's Report)
Order, 2020 ("the Order"), issued by the Central
Government of India in terms of sub-section (11)
of section 143 of the Companies Act, 2013, we give
in the "Annexure A", a statement on the matters
specified in the 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 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 (including other comprehensive income),
Cash Flow Statement and the Statement of
Changes in Equity dealt with by this Report
are in agreement with the books of account.
d) In our opinion, the aforesaid standalone Ind
AS financial statements comply with the
Indian 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 2024, taken
on record by the Board of Directors, none of
the directors is disqualified as on 31st March
2024, from being appointed as a director in
terms of section 164(2) of the Act.
f) With respect to the adequacy of the internal
financial controls over financial reporting of
the Company and the operating effectiveness
of such controls, refer to our separate report in
"Annexure B"; and
g) In our opinion, the managerial remuneration
for the year ended March 31, 2024, has been
provided by the Company to its directors in
accordance with the provisions of section 197
read with Schedule V to the Act;
h) With respect to the other matters to be
included in the Auditor's Report in accordance
with Rule 11 of the 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 on the financial
position in the standalone Ind AS
financial statements - refer Note 33 to
the standalone financial statements;
ii. The Company did not have any long¬
term contracts including derivative
contracts for which there were any
material foreseeable losses;
iii. There has been no delay in transferring
amounts, required to be transferred, to
the Investor Education and Protection
Fund by the Company.
iv.
a. The management has represented
that, to the best of its knowledge
and belief, no funds have been
advanced or loaned or invested
(either from borrowed funds
or share premium or any other
sources or kind of funds) by
the company to or in any other
person(s) or entity, including
foreign entities (Intermediaries)
with the understanding, whether
recorded in writing or otherwise,
that the Intermediary shall,
whether, directly or indirectly
lend or invest in other persons
or entities identified in any
manner whatsoever by or on
behalf of the company ("Ultimate
Beneficiaries") or provide
any guarantee, security or the
like on behalf of the Ultimate
Beneficiaries;
b. The Management has represented
to the best of its knowledge &
belief, other than as disclosed
in the notes to the accounts, no
funds have been received by the
company from any person(s) or
entity, including foreign entities
("Funding Parties") with the
understanding, whether recorded
in writing or otherwise, that the
company shall, whether, directly
or indirectly, lend or invest in
other persons or entities identified
in any manner whatsoever by or
on behalf of the Funding Party
("Ultimate Beneficiaries") or
provide any guarantee, security or
the like on behalf of the Ultimate
Beneficiaries;
c. Based on the audit procedures
performed that have been
considered reasonable and
appropriate in the circumstances,
nothing has come to our notice
that has caused us to believe
that the representations under
sub-clause (i) and (ii) of Rule
11(e), as provided under (a) and
(b) above, contain any material
misstatement.
v. The company has not declared or
paid any dividend during the year
in contravention of the provisions of
section 123 of the Companies Act, 2013.
For Bansal Bansal & Co.
Chartered Accountants
FRN: 100986W
Jatin Bansal
Partner
Membership No. : 135399
Place : Mumbai
Dated : 29th April,2025
UDIN : 25135399BMKYMP8669
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