INDEPENDENT AUDITORS
THE MEMBERS,
CAPRICON REALTY LIMITED
Report on the Financial Statements
1. We have audited the accompanying financial statements of CAPRICON REALTY 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
2. 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 referred to in sub-section (3C)
of section 211 of the Companies Act, 1956 read with Section 133 of The Companies Act, 2013
in terms of General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate
Affairs. This responsibility includes the design, implementation and maintenance of
internal control relevant to the preparation and presentation of the financial statements
which are free from material misstatement, whether due to fraud or error.
Auditors Responsibility
3. Our responsibility is to express an opinion on the financial statements based on
audit procedures that have been carried out. We have 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, plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
4. 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, 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.
5. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our audit opinion.
Auditor Opinion
6. In our opinion and to the best of our knowledge 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, 2014 and;
b. in the case of the Statement of Profit and Loss, of the profit for the year ended on
that date.
c. in the case of Cash Flow Statement, of the cash flows for the year ended on that
date.
Report on Other Legal and Regulatory Requirements
7. 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.
8. 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 accounts 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 accounts;
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 read with General Circular 115/2013 dated 13th September,
2013 of Ministry of Corporate Affairs in respect of section 133 of Companies Act, 2013.
e. on the basis of written representations received from the directors as on March 31,
2014, and taken on record by the Board of Directors, none of the directors are
disqualified as on March 31, 2014, from being appointed as a director in terms of clause
(g) of sub-section (1) of section 274 of The Companies Act, 1956.
For AJ. Shah & Co.,
Chartered Accountants
Firm Registration No. 109477W
Devendra J Shrimanker
Partner
Membership No. 41920
Place: Mumbai
Date: 12th June, 2014
Annexure to the Independent Auditors Report
With reference to the Annexure referred to in paragraph 7 of the report of the
Auditors to the Members of CAPRICON REALTY LIMITED on the accounts for the year
ended 31st March 2014, we report that:
i. (a) The Company has maintained proper records showing full particulars including
quantitative details and situation of fixed assets on the basis of available information.
(b) According to the information and explanations provided to us, the Company has
physically verified the fixed assets and there were no discrepancies observed.
(c) During the year, the Company has not disposed off any substantial part of its fixed
assets.
ii. (a) The inventory Consists of work-in-progress and land. Work-in-progress consists
of land under-development and other expenses incurred for development. The management has
conducted physical verification of inventory at reasonable intervals during the year
except inventory comprising of work-in-progress. According to the information and
explanation given to us, and also keeping in view the nature of the operations of the
Company, the inventory of work-in-progress cannot be physically verified.
(b) In our opinion and according to the information and explanations given to us, the
procedures for the physical verification of Inventory followed by management are
reasonable and adequate in relation to the size of the Company and the nature of its
business.
(c) According to the information and explanations given to us, no discrepancies were
noticed on physical verification of Inventory.
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
provisions of clauses 4 (iii) - (a), (b), (c) and (d) of the Companies (Auditors Report)
Order 2003 are not applicable to the company.
(b) According to the information and explanations given to us, the Company has not
taken any secured loans during the year from companies, firms or other parties covered in
the register maintained under section 301 of the Companies Act, 1956. Accordingly
provisions of clauses 4 (iii) - (e), (f) and (g) of the Companies (Auditors Report) Order
2003 are not applicable to the company.
iv. The Company does not have any sale of inventories during the current year.
Accordingly, clause 4(iv) of the order with respect to sale of goods is not applicable. In
our opinion, and according to the information and explanations given to us, there are
adequate internal control procedures commensurate with the size of the Company and nature
of its business with regard to purchase of inventory and fixed assets. In our opinion, and
according to the information and explanations given to us, there is no continuing failure
to correct major weaknesses in internal control.
v. (a) In our opinion and according to the information and explanations given to us,
the transactions made in pursuance of contracts or arrangements that need to be entered in
the register maintained under section 301 of the companies Act, 1956 have been so entered.
(b) In our opinion and according to the information and explanations given to us, the
transactions made in pursuance of contracts or arrangements entered in the register
maintained under section 301 of the companies Act, 1956 and exceeding the value of
Rs.5,00,000/- in respect of each party during the year have been made at prices which
appears reasonable as per information available with the company.
vi. According to the information and explanations given to us, the Company has not
accepted any deposit during the year from public within the meaning of the provisions of
Section 58A and Section 58AA of the Companies Act, 1956 and the rules framed there under.
Hence, clause 4 (vi) of the Companies (Auditors Report) Order, 2003 is not applicable.
vii. The Company has appointed an independent firm of chartered accountants to carry
out the internal audit which in our opinion is commensurate with the size of Company and
the nature of its business.
viii. According to information and explanation given to us, Central Government has not
prescribed the maintenance of cost records under Section 209(1) (d) of the Companies Act,
1956 for any of the products of the company hence clause 4 (viii) of the Companies
(Auditors Report) Order, 2003 is not applicable to the company.
ix. (a) According to the information and explanations given to us and on the basis of
our examination of the books of account, the Company has been generally regular in
depositing with appropriate authorities undisputed statutory dues including Investor
Education and Protection Fund, Income-tax, Sales-tax, Wealth tax, Service Tax, Cess and
any other statutory dues wherever applicable and as at 31st March 2014, there were no
undisputed dues payable for a period of more than six months from the date they became
payable.
(b) According to the information and explanation given to us, and the records of the
company examined by us, there are no dues in respect of Income-tax, Sales-tax, Wealth tax,
Service Tax, Cess which have not been deposited on account of any dispute except
following:
| Nature of dues |
Assessment Year |
Forum with whom dispute is pending. |
Amount (INR) |
| Income Tax |
2010-11 |
CIT (A) |
12,38,800 |
|
|
Total |
12,38,800 |
x. The company does not have accumulated losses at the end of the financial year. The
company has not incurred cash losses during the financial year. The company has also not
incurred cash losses in the immediately preceding financial year.
xi. According to the information and explanation given to us, The company does not have
any borrowings from financial institutional and banks or by way of debentures. Accordingly
clause 4 (xi) of the Companies (Auditors Report) Order, 2003 is not applicable to the
company.
xii. The Company has not granted any loans and/or advances on the basis of security by
way of pledge of shares, debentures and other securities. Accordingly, the provisions of
clause 4(xii) of the Companies (Auditors Report) Order, 2003 is not applicable to the
Company.
xiii. In our opinion, the Company is not a chit fund company or a Nidhi/Mutual benefit
fund/ society. Accordingly, the provisions of clause 4(xiii) of the Companies (Auditors
Report) Order, 2003 is not applicable to the Company.
xiv. According to the information and explanations given to us, the Company is not
dealing or trading in shares, securities, debentures and other investments. Accordingly,
the provisions of clause 4(xiv) Companies (Auditors Report) Order 2003 is not applicable
to the company.
xv. According to the information and explanation given to us, the Company has not given
any guarantee for loan taken by others from banks or financial institutions. Accordingly,
the provisions of clause 4(xv) Companies (Auditors Report) Order 2003 is not applicable
to the company.
xvi. According to information and explanations provided to us, the Company has not
raised any term loan. Accordingly, the provisions of clause 4(xvi) Companies (Auditors
Report) Order 2003 is not applicable to the company.
xvii. According to the information and explanations given to us and on an overall
examination of the Balance Sheet of the company, we are of the opinion that no funds
raised on short-term basis have been used for long-term investment. Accordingly, the
provisions of clause 4(xvii) Companies (Auditors Report) Order 2003 is not applicable to
the company.
xviii. The Company has not made any preferential allotment of shares during the year.
Accordingly, the provisions of clause 4(xviii) Companies (Auditors Report) Order 2003 is
not applicable to the company.
xix. The Company has not issued any debentures during the year. Accordingly, no
security or charge has been created in respect of debentures issued. Accordingly, the
provisions of clause 4(xix) Companies (Auditors Report) Order 2003 is not applicable to
the company.
xx. The Company has not raised any money by public issues during the year. Accordingly,
the provisions of clause 4(xx) Companies (Auditors Report) Order 2003 is not applicable
to the company.
xxi. To the best of our knowledge and belief and according to the information and
explanations given to us, no fraud on or by the Company was noticed or reported during the
year.
For A J. Shah & Co.,
Chartered Accountants
Firm Registration No. 109477W
Devendra J Shrimanker
Partner
Membership No. 41920
Place: Mumbai
Date: 12th June, 2014
+91-9892691696
