To |
The Members of PENINSULA LAND LIMITED |
|
1. |
We have audited the attached Balance Sheet of
Peninsula Land limited (‘the Company’) as at March
31, 2012 and also the Statement of Profit and Loss and
the Cash Flow Statement for the year ended on that
date annexed thereto. These financial statements are
the responsibility of the Company’s management.
Our responsibility is to express an opinion on these
financial statements based on our audit. |
2. |
We conducted our audit in accordance with
auditing standards generally accepted in India.
Those Standards require that we plan and perform
the audit to obtain reasonable assurance about
whether the financial statements are free of material
misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also
includes assessing the accounting principles used
and significant estimates made by management,
as well as evaluating the overall financial statement
presentation. We believe that our audit provides a
reasonable basis for our opinion. |
3. |
As required by the Companies (Auditor’s Report)
Order, 2003, as amended by the Companies (Auditor’s
Report) (Amendment) Order, 2004, issued by the
Central Government of India in terms of sub-section
(4A) of Section 227 of ‘The Companies Act, 1956’ of
India (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 4
and 5 of the said Order. |
4. |
Further to our comments in the paragraph 3 above,
we report that: |
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i. |
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; |
|
ii. |
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; |
|
iii. |
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; |
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iv. |
In our opinion, the balance sheet, the statement of
profit and loss and cash flow statement dealt with by
this report, except for non disclosure of category of
plan assets and other disclosures in accordance with
AS-15 (Revised) “Employee Benefits” as stated in Para
No.11 of Note No.23 to Accounts, comply with the
accounting standards referred to in sub-section (3C)
of section 211 of the Companies Act, 1956. |
|
v. |
Without qualifyingrour opinion, attention is invited
to recognition of income and expenses for ongoing
projects which is based upon estimated costs, as
per the judgment of management and certificate of
architect, which have been relied upon by us, these
being technical matters. |
|
vi. |
On the basis of the written representations received
from the directors, as on March 31, 2012, and taken
on record by the Board of Directors, we report that
none of the directors is disqualified as on March 31,
2012 from being appointed as a director in terms
of clause (g) of sub-section (1) of section 274 of the
Companies Act, 1956. |
|
vii. |
In our opinion and to the best of our information and
according to the explanations given to us, the said
accounts read together with para (iv) above, 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 March 31, 2012; |
|
|
b) |
in the case of the statement of profit and loss, of the
profit for the year ended on that date; and |
|
|
c) |
in the case of cash flow statement, of the cash flows
for the year ended on that date. |
|
For Haribhakti & Co.
Chartered Accountants
Firm’s Registration No.103523W
Chetan Desai
Partner
Membership No.17000
|
Place: Mumbai
Date: 17th May, 2012 |
|
Annexure to Auditors’ Report |
[Referred to in paragraph 3 of the Auditors’ Report of even
date to the members of Peninsula Land limited on the
financial statements for the year ended March 31, 2012] |
(i) | (a) | The Company has maintained proper records
showing full particulars, including quantitative
details and situation of fixed assets. |
| (b) | We are informed that the fixed assets of
the company are physically verified by the
management according to phased programme
designed to cover all the items over a period
of the three years, which, in our opinion, is
reasonable having regard to the size of the
Company and the nature of its assets. Pursuant
to the programme, physical verification has
been carried out during the year, as informed,
no material discrepancies were noticed on such
verification. |
| (c) | In our opinion and according to the information
and explanations given to us, a substantial part
of fixed assets has not been disposed of by the
company during the year. |
(ii) | (a) | The inventory has been physically verified by the
management during the year. In our opinion, the
frequency of verification is reasonable. |
| (b) | The procedures of physical verification of
inventory followed by the management are
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 and no material discrepancies were
noticed on physical verification carried out at the
end of the year. |
(iii) | (a) | The Company has granted loan to twenty three
companies covered in the register maintained
under section 301 of the Companies Act, 1956.
The maximum amount involved during the year
was 1333 Crores and the year-end balance of
loans granted to such parties was 1312 Crores. |
| (b) | In our opinion and according to the information
and explanations given to us, the rate of interest
and other terms and conditions for such loans
are prima facie, not prejudicial to the interest of
the Company. |
| (c) | The loans granted are repayable on demand. As
informed, the company has not demanded
repayment of any such loan and interest during
the year, thus, there has been no default on the
part of the parties to whom the money has been lend. The payment of interest has been regular. |
| (d) | There is no overdue amount of loans granted to
companies, firms or other parties listed in the
register maintained under section 301 of the
Companies Act, 1956. |
| (e) | As informed, the Company has not taken any
loans, secured or unsecured from companies,
firms or other parties 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 exists an adequate
internal control system commensurate with the size
of the Company and the nature of its business with
regard to purchase of inventory, fixed assets and
with regard to the sale of goods and services. During
the course of our audit, we have not observed any
continuing failure to correct major weakness in
internal control system of the company. |
(v) | (a) | According to the information and explanations
given to us, we are of the opinion that the
particulars of contracts or arrangements referred
to in section 301 of the Companies Act, 1956 that
need to be entered into the register maintained
under section 301 have been so entered. |
| (b) | In our opinion and according to the information
and explanations given to us, the transactions
made in pursuance of such contracts or
arrangements exceeding value of Rupees
five lakhs have been entered into during the
financial year at prices which are reasonable
having regard to the 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 within the
meaning of Sections 58A and 58AA of the Act and
the rules framed there under. |
(vii) | In our opinion, the Company has an internal audit
system commensurate with the size and nature of its
business. |
(viii) | Based on the opinion obtained by the Company, the
Company is of the view that the maintenance of cost
records under clause (d) of sub-section (1) of Section
209 of the Act is not applicable for the activities
carried out by the Company. Hence, such records
have not been maintained. |
(ix) | (a) | The Company is regular in depositing with
appropriate authorities undisputed statutory
dues including provident fund, investor education and protection fund, employees’ state
insurance, income-tax, sales-tax, wealth-tax,
service tax and other material statutory dues
applicable to it. However, there have been few
delays in depositing tax deducted at source and
service tax. As explained to us, the provisions
regarding custom duty and excise duty are
presently not applicable to the company. |
| (b) | According to the information and explanations
given to us, no undisputed amounts payable in
respect of provident fund, investor education
and protection fund, employees’ state insurance,
income-tax, wealth-tax, service tax, salestax,
customs duty, excise duty, cess and other
undisputed statutory dues were outstanding,
at the year end, for a period of more than six
months from the date they became payable. |
| (c) | According to the information and explanation
given to us, there are no dues of income tax,
sales-tax, wealth tax, service tax, customs duty,
excise duty and cess which have not been
deposited on account of any dispute except for
the dues in relation to income tax as disclosed
hereunder: |
|
Income tax Act, 1961 |
Income Tax |
31.80 |
2008-09 |
Commissioner of Income Tax (Appeals) |
|
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(x) | The company does not have any accumulated
losses at the year end. Further, the company has not
incurred cash losses 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 defaulted in repayment of dues to a financial
institution, bank or debenture holders. |
(xii) | According to the records of the Company and
according to the information and explanations
provided to us, we are of the opinion that the
company has not granted loans and advances 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 (as amended) are not applicable
to the Company. |
(xiv) | In respect of dealing / trading in shares, securities,
debentures and other investments, in our opinion
and according to the information and explanations
given to us, generally the Company did not deal or
trade in it. However, on short term basis, surplus
funds were invested in mutual fund for which proper
records for the transaction and contracts have been
maintained and timely entries have been made
therein. The shares, securities, debentures and
other investments have been held by the Company,
in its own name. |
(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 during the year. |
(xvi) | In our opinion and according to the information and
explanations given to us, the term loans have been
applied for the purpose for which the loans were raised.
However, on short term basis, excess borrowings were
parked in fixed deposits of various banks. |
(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 had not made preferential
allotment of shares to parties and companies
covered in the register maintained under section
301 of the Act. |
(xix) | The Company did not issue any debentures during
the year. |
(xx) | During the year the company has not raised any
money through public issue. |
(xxi) | During the course of our examination of the
books and records of the company, carried out in
accordance with the generally accepted auditing
practices in India, and according to the information
and explanations given to us, we have neither come
across any instance of fraud on or by the company,
noticed or reported during the year, nor have we
been informed of such case by the management. |
|
For Haribhakti & Co.
Chartered Accountants
Firm’s Registration No.103523W
Chetan Desai
Partner
Membership No.17000
|
Place: Mumbai
Date: 17th May, 2012 |