AUDITOR
To,
The Members of Alacrity Housing Limited
A) Attention is invited to Point No: 9 of Note 15 (Notes to the Accounts) expressing
that the accounts have been prepared under going concern concept even though most of the
employees of the Company had left and the full-fledged construction activities had stopped
during the year 2003-04. since the Board of Directors are confident that the Company can
be revived in due course of time. We have relied on this assertion while making this
report.
B) Attention is invited to Point No:14 of Note 15 expressing that the balances under
sundry debtors, sundry creditors and loans and advances remain to be confirmed and in
absence of evidence to the contrary, book balances have been taken as correct subject to
the other notes as per of Note IS. Attention is also invited to Point No:l to Point A/o.7
and Point No:10 to Point No. 12 of Note 15 giving the status of contingent liabilities,
old accounts, pending cases and claims from various parties including Banks and Statutory
Authorities (towards Gratuity, PF, Income tax and others) and non provision of interest as
the case may be. Accuracy of the balances stated in the financial statements depends on
the outcome of the court cases/settlements/negotiations in various stages and the accounts
may undergo changes as and when the liabilities crystallize/further information is made
available, extent of such changes not ascertainable.
Subject to the observations asabove, we report asbelow:
1. We have audited the attached Balance Sheet of Alacrity Housing Limited as at 31st
March 2014 and also the Profit and Loss Account and the Cash Flow Statement for the year
ended on that date annexed thereto. These financial statements are the responsibility of
the Companys management. Our responsibility is to express an opinion on these financial
statements based on our audit.
2. We have conducted our audit in accordance with the 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 the 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 (Auditors Report) Order, 2003 and amendments thereto
issued by the Central Government of India in terms of Sec 227(4A) of the Companies Act
1956,we annex hereto a statement on the matters specified in paragraphs 4 and 5 of the
said order, to the extent applicable to the Company.
4. Subject to our observations asmentioned in A and B and Ito3 above, we further
report that:
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 companys balance sheet and profit and loss account dealt with by this report
are in agreement with the books of account produced before us.
iv. In our opinion, the profit and loss account and balance sheet dealt with by this
report comply with the applicable accounting standards referred to in sub-section (3C) of
section 211 of the Companies Act, 1956; v. The Company has filed Annual Accounts and
Annual Returns for all financial years up to 31.03.2013.
However, two other Companies in which Mr. Dilip Dharmasthal (DIN 01737794) is a
Director have not filed their Annual Accounts and Annual Returns for more than three
continuous financial years ason 31.03.2014. Consequently, Mr. Dilip Dharmasthal is
disqualified as on 31.03.2013 from being appointed as Director under Clause (g) of
sub-section (1) of 274 of the Companies Act,1956.
vi. In our opinion and to the best of our informationand according to the explanations
given to us, the said accounts read together with and subject to notes thereon and
subject to our observations as mentioned in the above paragraphs and the annexure
attached as mentioned in Para 3 above, give the information required by the Companies
Act,1956in the manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India:
i. in the case of the Balance Sheet of the state of affairs of the Company asat
31stMarch 2014; and
ii. in the case of Profit and Loss Account, of the Loss for the year ended on that
date.
iii. in the case of the cash flow statement,of the cash flows of the company for the
year ended on that date.
|
R.VATHSANGAM |
| Place: Chennai |
Chartered Accountant |
| Dated: 1st September 2014 |
(Membershi p No.018978) |
Annexure to Auditors Report
Annexure referred to in paragraph 3 of the auditors report to the members of
Alacrity Housing Ltd for the year ended 31st March, 2014.
As required by the companies (Auditor Report) Order, 2003 (as amended) and according to
the information and explanations given to us during the course of the audit and on the
basis of such checks of the books and records as were considered appropriate we report
that:
(!) a) The company has maintained proper records showing full particulars including
quantitative details and situation of fixed assets.
b) All the assets have been physically verified by the management in accordance with a
phased programme of verification, which in our opinion is reasonable, considering the size
and the nature of business. The frequency of verification is reasonable and no material
discrepancies have been noticedon such physical verification.
(ii) The company doesnt have any inventory.
(iii) a) to g) The Company has not granted any loan secured or unsecured to companies,
firms or other parties covered in the register maintained under section 301 of the
Companies Act, 1956. Accordingly clauses 4 (iii) (b) to (d) of the Order are not
applicableto the company. The company has taken unsecured loans from one party to the
extent of Rs 0.63 lacs during the year. The balance outstanding on 31-3-2014 is Rs 56.63
lacs to companies, firms or other parties covered in the register maintained under section
301 of the Companies Act, 1956. In our opinion and according to the information
andexplanations given to us, the rate of interest andthe other terms and conditions of
loans taken by the company, secured or unsecured, are prima-facie not pre-judicial to the
interest of the company. The company is not regular in repayment of principal and
interest.
(iv) From the information and explanations made available at the time of Audit, we
are unable to express an opinion as to adequacy of internal control systems commensurate
with the size of the company and the nature of its business with regard to purchase of
inventories, fixed assets and for the sale of goods and services and whether there
is a continuing failure to correct major weaknesses in internal control.
(v) a) The transactions made in pursuance of contracts or arrangements that need to be
entered into the register maintained under section 301 of the Companies Act,1956 hasbeen
recorded in the register.
b) The transactions have been made at prices which are reasonable having regard to the
prevailing market prices at the relevant time.
(vi) The company has not accepted any deposits from the public within the meaning of
the sections 58A,58AA or any other relevant provision of the Act and the rules framed
there under. As per the information and explanations given, no order from the Company
LawBoard hasbeen passed.
(vii) TheCompany has noformal internal audit system commensurate with its size and
nature of its business.
(viii) The Central Government has not prescribed for maintenance of cost records under
section 209 (1) (d) of the Companies Act, 1956for the company.
(ix) a) According to the records of the company, there are undisputed statutory dues
including Pension, Investor Education and Protection Fund, Employees State Insurance,
Income Tax (including YDS), Sales Tax, Service 7ox> and
Cess which have not been regularly deposited with the appropriate authorities. The
extent of arrears of statutory dues outstanding for more than 6 months as at 31-3-2014
amounted to Rs 62.91 lacs. Reference is drawn to Point No:12 of Note 15 (Notes to
the Accounts) for details.
b) There are also disputed amounts payable in respect of Provident Fund, Employees
State Insurance, Income Tax (including TDS), Sales Tax, Service Tax, and Cess which have
remained unpaid as at 31st March, 2014to the extent o/ Rs 8.86 toes. Reference is
drawn to Point No: 11 of Note 15 (Notes to the Accounts)for details.
(x) The company hasaccumulated losses at the end of the financial year 2013-2014 which
hasfar exceeded its net worth andit hasincurred cash losses in this financial year as well
asin the immediately precedingfinancial year.
(xi) The Company has defaulted in repayment of dues to the Banks. For the amount and
the period of default, refer Point A/os. 6 and 7of Note 15 (Notes to the
Accounts).
(xii) The company has not granted any loans or advances on the basis of security by way
of pledge of.shares, debentures or other securities.
(xiii) The provisions of any Special Statute applicable to Chit Fund, Nidhi or Mutual
Benefit Fund/Societies are not applicable to the company.
(xiv) In our opinion and according to the information and explanations given to us, the
company is not a dealer or trader in shares, securities, debentures and other investments.
(xvi) Noterm loans have been received duringthe year bythe Company.
(xvii) Onanoverall examination of the financials of the company, we areunable to report
that funds raised on short term basis have been used for longterm 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 Act.
(xix) The company hasnot issued anydebentures duringthe year.
(xx) The company has not raised any money by way of public issue during the year.
(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, we
have not come across any instance of fraud on or by the Company noticed or reported during
the year.
|
R.VATHSANGAM |
| Place: Chennai |
Chartered Accountant |
| Dated: 1st September 2014 |
(Membershi p No.018978) |
+91-9892691696
