INDEPENDENT AUDITORS
To the Members of Hometrail Estate Private Limited
Report on the Financial Statements
We have audited the accompanying financial statements of Hometrail Estate Private
Limited (“the Company”), which comprise the Balance Sheet as at March 31,
2013, and the Statement of Profit and Loss and 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
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 accounting principles generally accepted in India, including
the Accounting Standards referred to in subsection (3C) of section 211 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.
Auditor’s 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
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 Companys preparation and fair
presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of the accounting estimates made by
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 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:
(a) in the case of the Balance Sheet, of the state of affairs of the Company as at
March 31, 2013;
(b) in the case of the Statement of Profit and Loss, of the loss for the year ended on
that date; and
(c) in the case of the Cash Flow Statement, of the cash flows for the year ended on
that date.
Emphasis of Matter
We draw attention to Note 2 in the financial statements which indicates that the
Company incurred a net loss of Rs. 1615. 40 lacs during the year ended March 31, 2013 and,
as of that date, the Company has accumulated losses of Rs. 3, 375. 64 lacs as against
share capital and security premium of Rs. 6194. 80 lacs. These conditions indicate the
existence of a material uncertainty that may cast significant doubt regarding the
Companys ability to continue as a going concern, which is dependent on establishing
profitable operations and obtaining continuing financial support from its holding company.
These mitigating factors have been more fully discussed in note 2 in the accompanying
financial statements, in view of which the accompanying financial statements have been
prepared under the going concern assumption, and consequently, no adjustments have been
made to the carrying values or classification of balance sheet accounts. Our opinion is
not qualified in respect of this matter.
Report on Other Legal and Regulatory Requirements
1 As required by the Companies (Auditors Report) Order, 2003 (“the
Order”) issued by the Central Government of India in terms of sub-section (4A) of
section 227 of the Act, 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 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 appears from our examination of those books;
(c) 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;
(d) In our opinion, the Balance Sheet, Statement of Profit and Loss, and Cash Flow
Statement comply with the Accounting Standards referred to in subsection (3C) of section
211 of the Companies Act, 1956;
(e) On the basis of written representations received from the directors as on March 31,
2013, and taken on record by the Board of Directors, none of the directors is disqualified
as on March 31, 2013, from being appointed as a director in terms of clause (g) of
sub-section (1) of section 274 of the Companies Act, 1956.
For S R B C & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E
per Sandeep Sharma
Partner
Membership Number: 93577
Place of Signature: Gurgaon
Date: May 28, 2013
Annexure referred to in paragraph 1 under the heading “Report on Other Legal and
Regulatory Requirements” of our report of even date.
Re: Hometrail Estate Private Limited (‘the Company’)
(i) (a) The Company has maintained proper records showing full particulars, including
quantitative details and situation of fixed assets.
(b) All fixed assets have not been physically verified by the management during the
year but there is a regular programme of verification which, in our opinion, is reasonable
having regard to the size of the Company and the nature of its assets. No material
discrepancies were noticed on such verification.
(c) There was no disposal of a substantial part of fixed assets during the year.
(ii) (a) The management has conducted physical verification of inventory at reasonable
intervals during the year.
(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.
(iii) (a) 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 301 of the Companies Act, 1956. Accordingly, the
provisions of paragraph 4(iii)(a) to (b) of the Order are not applicable to the Company
and hence not commented upon
(b) According to information and explanations given to us, 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. Accordingly, the
provisions of paragraph 4(iii)(e) to (g) of the Order are not applicable to the Company
and hence not commented upon
(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, for the purchase of inventory and fixed assets and for the
sale of goods and services. During the course of our audit, we have not observed any major
weakness or continuing failure to correct any major weakness in the internal control
system of the company in respect of these areas.
(v) (a) In our opinion, there are no contracts or arrangements that need to be entered
in the register maintained under Section 301 of the Companies Act, 1956. Accordingly, the
provisions of paragraph 4(v)(b) of the Order is not applicable to the Company and hence
not commented upon.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an internal audit system commensurate with the
size and nature of its business.
(viii) To the best of our knowledge and as explained, the Central Government has not
prescribed maintenance of cost records under paragraph (d) of sub-section (1) of section
209 of the Companies Act, 1956 for the products of the Company.
(ix) (a) Undisputed statutory dues including provident fund,investor education and
protection fund, employees’ state insurance, income-tax, sales-tax, wealth-tax,
service tax, customs duty, excise duty, cess and other material statutory dues have
generally been regularly deposited with the appropriate authorities though there has
been a slight delay In a few cases.
(b) According to the information and explanations given to us, no undisputed amounts
payable in respect of provident fund, investor education and protection fund, income-tax,
wealth-tax, service tax, sales-tax, customs duty, excise duty cess and other material
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.
(x) The Company has been registered for a period of less than five years and hence we
are not required to comment on whether or not the accumulated losses at the end of the
financial year is fifty per cent or more of its net worth and whether it has incurred cash
losses in the current financial year and in the immediately preceding financial year.
(xi) Based on our audit procedures and as per the information and explanations given by
the management, we are of the opinion that the Company has not defaulted in repayment of
dues to a financial institution, bank or debenture holders.
(xii) According to the information and explanations given to us and based on the
documents and records produced to us, 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 paragraph 4(xiii) of the Companies (Auditor’s
Report) Order, 2003 (as amended) 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 paragraph 4(xiv) of the Companies (Auditor’s
Report) Order, 2003 (as amended) are not applicable to the Company.
(xv) 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.
(xvi) Based on information and explanations given to us by the management, term loans
were applied for the purpose for which the loans were obtained.
(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 funds amounting to Rs. 1,
338 Lacs raised on short term basis in the form of cash credit facility from banks and
short loan from holding company have been used for long-term investment representing
acquisition of fixed assets, repayment of long-term loan and funding of losses.
(xviii) The Company has not made any preferential allotment of shares to parties or
companies covered in the register maintained under section 301 of the Companies Act, 1956.
(xix) The Company did not have any outstanding debentures during the year.
(xx) The Company has not raised any money by public issue during the year.
(xxi) Based upon the audit procedures performed for the purpose of reporting the true
and fair view of the financial statements and as per the information and explanations
given by the management, we report that no fraud on or by the Company has been noticed or
reported during the year.
For SRBC & CO LLP
Chartered Accountants
ICAI Firm Registration Number: 324982E
per Sandeep Sharma
Partner
Membership Number: 93577
Place of Signature: Gurgaon
Date: May 28, 2013
+91-9892691696
