Bhanot Construction & Housing Ltd Auditor Reports

TO THE MEMBERS OF

BHANOT CONSTRUCTION & HOUSING LIMITED REPORT ON THE FINANCIAL STATEMENTS

We have audited the accompanying financial statements of Bhanot Construction & Housing Limited, which comprise the Balance Sheet as at March 31, 2014, 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.

MANAGEMENTS RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

The Companys 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 the Accounting Standards notified under the Companies Act, 1956 (the Act) read with the General Circular 15/2013 dated 13th September. 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013 and in accordance with the accounting principles generally accepted in India. This responsibility indudes the design, implementation and maintenance of internal control relevant to the preparation and presentation of the finandal statements that give a true and fair view and are free from material misstatement, whether (hie to fraud or error. .

AUDITORS RESPONSIBILITY

Our responsibility is to express an opinion on these finandal 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 auditors judgment, inducing 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 drcumstances, but not for the purpose of expressing an opinion on the effectiveness of the Companys internal control. An audit also indudes evaluating the appropriateness of accounting polices 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 suffident 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 aforesaid 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 31,2014;

(b) In the case of the Statement of Profit and Loss, of the loss of the Company for the year ended on that date;

(c) In the case of the Cash Flow Statement, of the cash flows for the year ended on that date

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 Section 227(4A) 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 ,the Statement of Profit and Loss and the Cash Flow Statement, dealt with by this Report are in agreement with the books of account.

d. In our opinion, the Balance Sheet, the Statement of Profit and Loss and Cash Flow Statement comply with Accounting Standards notified under the Act read with the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act; 2013.

e. On the basis of the written representations received from the directors as on March 31, 2014, taken on record by the Board of Directors, none of the directors is disqualified as on March 31, 2014, from being appointed as a director in terms of Section 274(lXg) of the Act.

	For Dhamija Sukhija & Co.
	Chartered Accountants
	(FRN: 000369N)
New Delhi	Sd/-
Date :30/05/2014	Prabhat Sukhija
	Partner
	Membership No.:514761

Annexure to Auditors Report

RE: Bhanott Construction & Housing Ltd.

Referred to in paragraph 3 of our report of even date to the members on the accounts for the year ended 31^st March 2014,

1) a) The Company is maintaining proper records showing full particulars, including quantitative details and situation of fixed assets. . .

b) The fixed assets have been physically verified by the management at reasonable intervals, 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) During the year, the Company has converted a part of land at dehradun (0.285 bigha out of 3 bigha) into Stock-In-Trade for Rs.19.985 lacs (Book Value Rs.10.756 lacs) and has also sold a land (i.e., 2.715 bigha) for Rs.l04.51lacs (Book Value RS.102.21 lacs), but the going concern status is not affected.

2) a) The inventory has been physically verified during the year by the management In our opinion, the frequency of verification is reasonable.

b) The procedures of physical verification of inventories followed by the management are reasonable and adequate in relation to the size and the nature of its business.

c) The company is maintaining proper books of inventory. As explained to us, no discrepancies were noticed during verification between the physical stocks as compared to books of records.

3 a)The company has not granted any loans, secured and unsecured, to companies, firms or other partners . covered in the register maintained under section 301 of the Companies Act, 1956. .

b) The company has an unsecured loan from M/s Indica Credits Private Limited amounting Rs. 33.24 lacs (Pertaining to FY 2010-11) covered in the register maintained under section 301 of the Companies Act, 1956.

4) In our opinion and according to the information and explanations given to us, the Company has no adequate internal control procedure commensurate with the size of the company and the nature of its business for purchase of inventories, raw materials, equipment and other assets and for sale of goods and services. During the course of our audit, we have not observed any continuing failure to correct major weaknesses in internal controls system of the company.

5) a)Based on the audit procedures applied by us and according to the information and explanation provided by the management, there are no particulars of contracts Or arrangements referred to in section 301 Of the Act which are to be entered in the register required to be maintained under that section.

b) As per information & explanations given to us and in our opinion, the transaction entered into by the company with parties covered u/s 301 of the Act does not exceeds five lacs rupees in a financial year therefore requirement of reasonableness of transactions does not arises.

6) According to the information and explanations given to us, the company has accepted deposits (outstanding amount Rs.64.89 lacs) covered under the provisions of sections 58A and 58AA of the Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975 with regard to the deposits accepted from the public

7) In our opinion, the company has no internal audit system commensurate with the size and nature of its business.

8) The central government has prescribed the maintenance of cost records by the company under clause (d) of sub-section (1) of section 209 of the Act. The company is not required to maintain such records.

9) a) The company is irregular in depositing with appropriate authorities undisputed statutory dues applicable to it such as service tax, Tax Deducted Source & Luxury Tax,

b) According to the information and explanations given to us, undisputed amounts payable in respect of . Luxury tax (Rs.7.66 lacs), service tax (Rs. 5.26 lacs) and Tax Deducted at source for the F.Y 2013-14 is payable for Rs.4.09 lacs as On 31/03/2014.

c) According to the information and explanation given to us, there are dues of income tax, amounting to Rs. 7.20 Crones relating to A.Y.2011-12 which have not been deposited on account of any dispute.

10) In Our opinion, the accumulated loses of the company are not more than fifty per cent of its net worth. Further, the company has incurred cash losses of Rs.177.87 lacs during the financial year covered by our audit and there was no cash loss in the immediately preceding financial year.

11) In our opinion and according to the information and explanations given to us, the company has defaulted in repayment of dues to financial institution/bank amounting to

Bank	Amount Unpaid (Rs. In lacs)	Due For The Month
Loan From ICICI Bank (4345)	11.05	March -14
Loan From ICId Bank (4342)	10.72	February - 14 & March - 14
Loan From ICICI Bank (4343)	5.02	March -14
HDFC Loan	12.02	March -14
HDFC (Home Equity)	15.06	February - 14 & March -14
TATA Capital (Skoda)	7.26	March -14
S. E. Investment Limited	68.06	February - 14 (Had To Be Closed On)
Total	129.19

12) In Our opinion and according the information and explanations given to us, no loans and advances have been granted by the company on the basis of security by way of pledge of shares, debentures and other securities;.

13) The company is not a chit fund or a nidhi/mutual benefit fund/ sodety.

14) The company is riot dealing/ trading in shares, securities, and other investments. However it has maintained proper record in respect of shares held as longterm investment and is held in the name of the company.

15) According to the information and explanation given to us, the company has not given any guarantee during the period for loans taken by others banks or financial institutions.

16) On the basis of information & explanation given to us, the company has not obtained any term loan during the period.

17) 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 investments and vice versa.

18) According to the information and explanations given to us, the company has not made preferential allotment of shares to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956 during the year.

19) According to the information and explanations given to us, the company had not issued any debentures during the period.

20) As per information and explanations given to us, the company has not raised money by public issue during the year. .

21) According to the information and explanations given to-us, no fraud on or by the company has been noticed or reported during the course of our audit

Place: New Delhi	For Dhamija Sukhija & Co.
Date: 30/05/2014	Chartered Accountants
	FRN: 000369N
	Sd/-
	(PRABHAT SUKHLJA)
	Partner
	M.No.514761