To,
The Members of,
PRIME PROPERTY DEVELOPMENT CORPORATION LIMITED
Report on the Audit of the Ind AS Financial Statements
Opinion
We have audited the accompanying Ind AS Financial statements of PRIME PROPERTY
DEVELOPMENT CORPORATION LIMITED ("the Company"), which comprise the Balance
Sheet as at 31 March 2023, the Statement of Profit and Loss including other comprehensive
income, the Statement of Changes in Equity and the Cash Flow Statement for the year ended
and a summary of significant accounting policies and other explanatory information (herein
after referred to as "Ind AS Financial Statements").
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, 2013 ("the Act") in the manner so required and give a true and
fair view in conformity with the Indian Accounting Standards prescribed u/s 133 of the Act
read with the Companies (Indian Accounting Standards) Rules, 2015, as amended, ("Ind
AS") and other accounting principles generally accepted in India, of the State of
Affairs of the Company as at 31st March, 2023, the Profits and total
comprehensive income, changes in equity and its cash flows for the year ended on that
date.
Basis for Opinion
We conducted our audit in accordance with the Standards on Auditing (SAs) specified
under section 143(10) of the Companies Act 2013. Our responsibilities under those
standards are further described in the Auditors Responsibilities for the Audit of the Ind
AS 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 Ind AS
Financial Statements under the provision of the Companies Act, 2013 and the rules there
under, and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the Code of Ethics. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion on the financial
statements.
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 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 that there are no such key audit matters to be
communicated in our report.
Information Other than the Financial Statements and Auditors Report thereon The
Companys Board of Directors is responsible for the other information. The Other
information comprises the information included in the Directors Report Management
discussion &Analysis and Business responsibility report, but does not include the
financial statements and our auditors report thereon.
Our opinion on the financial statements does not cover other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read
the other information and, in doing so, consider whether the financial statements or our
knowledge obtained during the course of 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.
Managements Responsibility for the Ind AS Financial Statements
The Companys Board of Directors is responsible for the matters stated in section
134(5) of the Companies Act, 2013 ("the Act") with respect to the preparation of
these Ind AS financial statements that give a true and fair view of the financial
position, financial performance, 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. 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 Ind AS financial statement
that give a true and fair view and are free from material misstatement, whether due to
fraud or error.
In preparing the Ind AS Financial Statements, management is responsible for assessing
the Companys 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.
Those Board of Directors are also responsible for overseeing the companys financial
reporting process.
Auditors Responsibility
Our objectives are to obtain reasonable assurance about whether the Ind AS Financial
Statements as a whole, are free from material misstatement, whether due to fraud or error,
and to issue an auditors 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 Ind AS Financial Statements. As part of an audit in accordance with SAs, we
exercise professional judgment and maintain professional skepticism throughout the audit.
We also:
• Identify and assess the risks of material misstatement of the 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 Companies Act, 2013, we are also responsible for expressing our opinion on whether
the Company has adequate internal financial controls system 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 managements 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 Companys
ability to continue as a going concern. If we conclude that a material uncertainty exists,
we are required to draw attention in our auditors report to the related disclosures in
the 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 auditors
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 financial
statements, including the disclosures, and whether the 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 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 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 financial statements of the
current period and are therefore the key audit matters. We describe these matters in our
auditors 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 (Auditors Report) Order, 2020 ("The Order")
issued by the Central Government of India in terms of Section 143 (11) of the Act, we give
in the Annexure A, a statement on the matters specified in paragraphs 3 and 4 of the
Order.
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 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, the Statement of Profit and Loss, the 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 Ind AS Financial Statements comply with the Indian
Accounting Standards specified under Section 133 of the Act read with the relevant rule
issued there under
e) On the basis of written representations received from the directors as on 31 March,
2023 taken on record by the Board of Directors, none of the directors is disqualified as
on 31 March, 2023, 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) With respect to the other matters to be included in the Auditors Report in
accordance with the requirements of section 197(16) of the Act, as amended:
According to the information and explanation given to us, the company has paid
remuneration to its directors during the year within the provision of section 197(16) of
the Act.
h) With respect to the other matters to be included in the Auditors Report in
accordance with Rule 11 of the Companies (Audit and Auditors) Rule, 2014, as amended, in
our opinion and to the best of our information and according to the explanation given to
us:
i. The Company does not have any pending litigations which shall impact its financial
positions.
ii. The Company does not have any long terms contracts for which provisions are
required to be made.
iii. The Company is not liable to transfer any amount to the Investor Education and
Protection Fund.
iv. (a) The Management has represented that, to the best of its knowledge and belief,
no funds (which are material either individually or in the aggregate) 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 or entity, including foreign
entity ("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, that, to the best of its knowledge and belief, no
funds (which are material either individually or in the aggregate) have been received by
the Company from any person or entity, including foreign entity ("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 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. According to the information and explanation given to us, the company has not
paid/declared any Dividend during the year. Hence the provision of section 123 of the Act
is not applicable to the company.
vi. Proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books
of account using accounting software which has a feature of recording audit trail (edit
log) facility is applicable to the Company with effect from April 1, 2023, &
accordingly, reporting under Rule 11(g) of Companies (Audit & Auditors) Rules, 2014 is
not applicable for the financial period ended March 31, 2023
For VORA & ASSOCIATES |
Sd/ |
CHARTERED ACCOUNTANTS |
RONAK A. RAMBHIA |
(ICAI Firm Reg. No.: 111612W) |
PARTNER |
PLACE: MUMBAI |
(Membership No. 140371) |
DATED: August 12, 2023 |
UDIN: 23140371BGQVWR5735 |
Annexure A to the Auditors Report
The Annexure referred to in Independent Auditors Report to the members of the Company
on the Ind AS Financial Statements for the year ended 31st March 2023, we
report that:
(i) In respect of Companys Property, Plant and Equipment and Intangible Assets:
a. (A) The Company has maintained proper records showing full particulars including
quantitative details and situation of Property, Plant and Equipment and relevant details
of Right-of-Use Assets.
(B) The Company has does not own any intangible assets
b. As explained to us and according to the practice generally followed by the Company,
all Property, Plant and Equipment and Right-of-Use Assets have been verified in a
periodical manner by the management during the year and no material discrepancies were
noticed on such physical verification. In our opinion, this periodicity of physical
verification is reasonable having regard to the size of the Company and nature of its
assets.
c. According to the information and explanation given to us, the title deeds of
immovable properties are held in the name of the Company.
d. The Company has not revalued any of its Property, Plant and Equipment (including
right-of-use assets) during the year.
e. No proceedings have been initiated during the year or are pending against the
Company as on March 31, 2023 for holding any benami property under the Benami Transactions
(Prohibition) Act, 1988 (as amended in 2016) and rules made there under
(ii) In respect of inventories
In our opinion and according to the information and explanation given to us, The
Company has not been sanctioned working capital limits in excess of ? 5 crore, in
aggregate, at any points of time during the year, from banks or financial institutions on
the basis of security of current assets and hence reporting under clause 3(ii)(a) &
(b) of the Order are not applicable.
(iii) According to the information and explanation given to us and on the basis of our
examination of the records of the Company, the Company has not provided any guarantee or
security to any parties covered in the register - maintained u/s 189 of the Companies Act,
2013. The Company has made investments in Company and granted unsecured loan to Company,
in respect of which the information is as below.
(a) The Company had made investment in Subsidiary Company of Rs. 3010 Lakhs in earlier
year, given Corporate Guarantee on behalf of its subsidiary to Bank for Rs. 2625 lakhs and
provided loan to Subsidiary Company and its closing balance as on year is Rs. 3130.96
Lakhs.
(b) In our opinion, the investments made and the terms & conditions of the grant of
loans during the year are prima facie, not pre judicial to the interest of the Company.
(c) According to the information and explanation given to us, the loans granted are
repayable on demand. As informed to us, the Company has not demanded repayment of the loan
or interest during the year.
(d) According to the information and explanation given to us, in respect of loans
granted by the Company, there is no overdue amount remaining outstanding as at the balance
sheet date.
(e) According to the information and explanation given to us, there is no loan which
has been renewed or extended or fresh loans granted to settle overdue of existing loans
given to same parties.
(f) According to the information and explanation given to us, the Company has granted
loan mentioning terms as repayable on demand.
(iv) According to the information and explanation given to us and on the basis of our
examination of the records of the Company, in respect of loans given and investments made,
the provisions of section 185 and 186 of the Companies Act, 2013 have been complied, as
applicable.
(v) In respect of loans, investments, guarantees and securities, the provisions of
section 185 and 186 of the Companies Act, 2013 have been complied, as applicable.
(vi) The Company has not accepted any deposits from the public within the meaning of
Section 73 to Section 76 of the Companies Act 2013.
(vii) According to the information and explanations given to examination of the records
of the Company, the maintenance of cost specified by the Central Government under
sub-section (1) of Companies Act, 2013 for the Company. Hence, reporting under clause not
applicable to the Company.
(viii) In respect to statutory dues
a. According to the records of the Company, the undisputed statutory dues under Income
tax, Goods & Service Tax and other Statutory Dues as applicable to it have been
generally regularly deposited with the appropriate authorities.
According to the information and explanations given to us, no undisputed amounts
payable in respect of the aforesaid dues were outstanding as at 31st March,
2023 for a period of more than six months from the date they became payable.
b. According to the information and explanations given to us, there were no dues of
Income Tax, Goods & Service Tax and other Statutory Dues as applicable to it, which
have not been deposited with the appropriate authorities on account of any dispute.
(ix) There were no transactions relating to previously unrecorded income that have been
surrendered or disclosed as income during the year in the tax assessments under the Income
Tax Act, 1961 (43 of 1961).
(x) a. The Company has not defaulted in repayment of loans or any other borrowings or
in payment of interest thereon.
b. The Company has not been declared wilful defaulter by any bank or financial
institution or government or any government authority.
c. The Company has not taken any term loan during the year and there are no outstanding
term loans at the beginning of the year and hence, reporting under clause 3 (ix) (c) of us
and based on our records has not been section 148 of the (vi) of the Order is the Order is
not applicable.
d. The Company has not taken any short-term loan during the year and hence, reporting
under clause 3 (ix)(d) of the Order is not applicable.
e. The Company does not have any subsidiary/associates/joint venture and hence,
reporting under clause 3 (ix)(e) of the Order is not applicable.
f. The Company has not raised any loans during the year and hence reporting on clause
3(ix)(f) of the Order is not applicable.
(xi) a. In our opinion and according to the information and explanations given to us,
the
Company has not raised any funds by way of initial public offer or further public offer
(including debt instruments) during the year. Accordingly, paragraph 3 (x)(a) of the
Order is not applicable.
b. During the year, the Company has not made any preferential allotment or private
placement of shares or convertible debentures (fully or partly or optionally) and hence
reporting under clause 3(x)(b) of the Order is not applicable.
(xii) a. In our opinion and according to the information and explanations given to us,
no fraud by the Company and no material fraud on the Company has been noticed or reported
during the year.
b. No report under sub-section (12) of section 143 of the Companies Act has been filed
in Form ADT-4 as prescribed under rule 13 of Companies (Audit and Auditors) Rules, 2014
with the Central Government, during the year and upto the date of this report.
c. According to the information and explanations given to us there are no whistle
blower complaints received by the Company during the year (and upto the date of this
report) Accordingly, paragraph 3 (xi)(c) of the Order is not applicable.
(xiii) In our opinion and according to the information and explanation given to us, the
Company is not a Nidhi Company. Accordingly, paragraph 3 (xii) of the Order is not
applicable.
(xiv) According to the information and explanations given to us and based on our
examination of the records of the Company, the transactions with related parties are in
compliance with section 177 and section 188 of the Act, as applicable, and details of such
transactions have been disclosed in the Ind AS Financial Statements as required by the
applicable accounting standard.
(xv) a. In our opinion and according to the information and explanation given to us,
the Company has an adequate internal audit system commensurate with the size and the
nature of its business.
b. We have considered the internal audit reports of the Company issued till date for
the period under audit.
(xvi) According to the information and explanations given to us, there are no non cash
transactions with Directors or any persons connected with them during the year under
review.
(xvii) a. According to the information and explanations given to us, the company is not
required to get registered under section 45-IA of the Reserve Bank of India Act, 1934.
b. In our opinion and according to the information and explanation given to us, there
is no core investment company within the Group (as defined in the Core Investment
Companies (Reserve Bank) Directions, 2016) and accordingly reporting under clause
3(xvi)(d) of the Order is not applicable
(xviii) According to the information and explanations given to us, the Company has not
incurred cash losses during the financial year covered by our audit, however, incurred
cash losses in the immediately preceding financial year.
(xix) There has been no resignation of the statutory auditors of the Company during the
year.
(xx) According to the information and explanation given to us and based on our
examination of the records of the Company, nothing has come to our attention, which causes
us to believe that any material uncertainty exists as on the date of the audit report
indicating that Company is not capable of meeting its liabilities existing at the date of
balance sheet as and when they fall due within a period of one year from the balance sheet
date. We, however, state that this is not an assurance as to the future viability of the
Company. We further state that our reporting is based on the facts up to the date of the
audit report and we neither give any guarantee nor any assurance that all liabilities
falling due within a period of one year from the balance sheet date, will get discharged
by the Company as and when they fall due.
(xxi) According to the information and explanations given to us and based on our
examination of the records of the Company, section 135 of the Companies Act, 2013
pertaining to Corporate Social Responsibility (CSR) is not applicable to the Company.
Accordingly, paragraph 3 (xx) of the Order is not applicable.
For VORA & ASSOCIATES |
Sd/ |
CHARTERED ACCOUNTANTS |
RONAK A. RAMBHIA |
(ICAI Firm Reg. No.: 111612W) |
PARTNER |
PLACE: MUMBAI |
(Membership No. 140371) |
DATED: August 12, 2023 |
UDIN: 23140371BGQVWR5735 |
+91-9892691696
